Rent agreements in India: what to know before you sign
Why 11 months, how stamp duty and registration work, and the clauses that protect your deposit.
A rent agreement is the document that settles most arguments between a tenant and an owner later: how much the deposit is, when it comes back, who fixes the geyser and how much notice you have to give. This guide explains the usual format in India, how stamp duty and registration work in general terms, and what to check line by line. Rules differ by state and change from time to time, so for anything unusual, check your state's current rules or ask a lawyer about your case.
Why most agreements are for 11 months
Under the Registration Act, 1908, a lease of property for a year or more has to be registered at the sub-registrar's office. That means a registration fee, stamp duty that grows with the length of the lease, and both sides appearing in person or through the state's online system. An agreement for less than 12 months doesn't have to be registered in most states, so 11 months has become the standard. When it ends, you sign a fresh one, usually with a rent increase.
An 11-month agreement is still a binding document. It needs the right stamp duty, and both sides are held to what it says.
Maharashtra is different
In Maharashtra, homes are usually rented under a leave and licence agreement, and these must be registered whatever their length, even for 11 months. The state's e-registration system lets this happen online, with Aadhaar-based verification of both sides, so you rarely need to visit an office. If you're renting in Mumbai or Pune, budget for the registration fee as well as the stamp duty.
Stamp duty and e-stamping
Each state sets its own stamp duty for rent agreements. Some charge a percentage of the rent (and sometimes the deposit) for the period, some a fixed amount, and some cap it. An unstamped or under-stamped agreement can't be relied on as evidence until the missing duty and a penalty are paid, so don't skip it to save a few hundred rupees.
Many states now sell stamp duty online as an e-stamp certificate, often through the Stock Holding Corporation of India (SHCIL) or the state's own portal. Buy it for the right amount, in the name of one of the parties, and keep it with the agreement. Snestico's Rent Agreement tool shows the rule for your state and an estimate before you buy.
Notarised is not the same as registered
Many tenants have their agreement notarised. A notary confirms that the people signing are who they say they are; it doesn't register the agreement or replace stamp duty. For an 11-month agreement in a state where registration isn't required, notarisation is optional. Where the law requires registration, such as a lease of a year or more or a leave and licence agreement in Maharashtra, it can't stand in for it.
What to check before you sign
- Names and addresses of the owner and every tenant, and the full address of the flat
- Monthly rent, the due date and how it's paid (bank transfer or UPI, so there's a record)
- The security deposit, and when and how it will be returned after you leave
- Maintenance charges: included in the rent or paid separately
- The lock-in period and the notice period, for both sides
- The rent increase at renewal, as a fixed percentage
- What can be deducted from the deposit: unpaid rent or bills, painting, damage beyond normal wear and tear
- Who pays for repairs: small ones often the tenant, structural and major ones usually the owner
- A list of fittings and furniture (fans, lights, geyser, AC, wardrobes, keys) and their condition
- Rules on guests, pets and subletting, and that the flat is for living in
- Signatures of both sides and two witnesses, on every page
After you sign
Keep a signed copy, on paper and as a scan on your phone. Take dated photos and a video of the flat on move-in day and send them to the owner on WhatsApp or by email, so there's a record of its condition. In many cities the owner also has to report the tenant to the police; Snestico's police verification form fills that in from your agreement.
The Model Tenancy Act
In 2021 the central government released the Model Tenancy Act. It suggests a written agreement for every tenancy, a cap of two months' rent on deposits for homes, and rent authorities to settle disputes quickly. It is a model law: it applies only where a state adopts it, and states can change it when they do. Check what your state has in force before relying on it.
Common questions
Is an 11-month rent agreement legal?
Yes. It needs the correct stamp duty for your state and the signatures of both sides, with two witnesses as is usual. Outside Maharashtra it generally doesn't have to be registered, because it's for less than a year.
Who pays the stamp duty on a rent agreement?
Unless you agree otherwise, stamp law generally puts it on the tenant. In practice many owners and tenants split it. Whatever you decide, write it down.
Can I make a rent agreement online?
You can draft it online and, in many states, buy e-stamp paper online. Signing still needs both sides and usually two witnesses, while Maharashtra's leave and licence registration can be done fully online. Snestico's free Rent Agreement tool drafts the agreement and shows your state's stamp duty rule.
Do I need a lawyer for a rent agreement?
For a standard flat rental, many people use a good template and read it carefully. For a long lease, a dispute, a commercial use or anything unusual, a local lawyer is worth the fee.
This guide is general information, not legal advice. Rules vary by state; check your state's current rules or ask a lawyer about your case.