A rental agreement is a important document that defines the terms and conditions between a property owner and a tenant. In Bangalore, most residential rental agreements for a period of up to 11 months are executed on e-stamp paper and notarized.
This guide explains the documents required, complete procedure, applicable charges, and stamp duty calculation for preparing a rental agreement in Bangalore.
WATCH THE VIDEO TUTORIAL
This video provides a detailed visual explanation of each step covered in this blog.
DOCUMENTS REQUIRED TO MAKE A RENTAL AGREEMENT
To prepare a rental agreement in Bangalore, you need the following:
- Rental Agreement Draft (prepared in Word format)
- E-stamp paper of the appropriate value
STEP-BY-STEP PROCESS TO CREATE A RENTAL AGREEMENT
Follow these steps to make a rental agreement:
- Draft the Rental Agreement
Prepare the agreement in Word format with all terms clearly mentioned (rent, duration, security deposit, etc.).
2. Purchase E-Stamp Paper
Buy the e-stamp paper from a cooperative bank, sub-registrar office, or court premises.
3. Print the Draft
Print your drafted agreement on the e-stamp paper.
4. Signatures
The owner, tenant, and two witnesses must sign the agreement.
5. Notarization
Visit a nearby notary public to notarize the agreement
CHARGES FOR RENTAL AGREEMENT IN BANGALORE
The approximate cost involved in preparing a standard rental agreement in Bangalore includes:
- E-stamp paper: 0.5% of consideration (max Rs.500)
- Stamp paper processing fee: Up to Rs.50
- Printing & paper: Rs.50
- Notary charges Rs.50 (approx.)
EXAMPLE: CONSIDERATION & STAMP DUTY CALCULATION
Let’s calculate how the stamp duty is determined:
- Agreement duration: 12 months
- Monthly rent: Rs.10,000
- Security deposit: Rs.50,000
Formula:
(Monthly rent × Number of months) + Security deposit
Calculation:
(Rs.10,000 × 12) + Rs.50,000 = Rs.1,70,000
Stamp duty: 0.5% of Rs.1,70,000 = Rs.850
However, the maximum stamp duty payable is capped at Rs.500.
DETAILS REQUIRED FOR E-STAMP PAPER
When purchasing e-stamp paper, you will need to provide the following details:
- Description of Document: Lease of immovable property not exceeding one year
- First Party Name: Property Owner
- Second Party Name: Tenant
- Purchaser Name: Either owner or tenant
- Consideration Amount: Based on rent and security deposit (used for stamp duty calculation)
NEED PROFESSIONAL ASSISTANCE?
If you need support with drafting a rental agreement, calculating stamp duty, notarization, write to us.
- Email: pgnproperties@gmail.com
- Phone: +91-9742479020