Landlord-Tenant News: Now in UP, registry of rent agreement will be encouraged for the security of property. Preparations are on to make a big change in the rules of rent agreement. To encourage registry, it has been recommended to keep the stamp duty very low. Soon the proposal will be presented in the cabinet.
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Rent Agreement Registry Rule: The Yogi Adityanath government in Uttar Pradesh is now going to take a big decision on rent agreement, which will have a direct impact on the landlord and the tenants. There are plans to promote the registration of rent agreements to protect the property. There are plans to make major changes in the rules of Rent Agreement. It has been recommended to keep the stamp duty very low to promote registration. The proposal will be presented in the cabinet soon.
Stamp and Registration Minister Ravindra Jaiswal in the ruling BJP government said that registration of rent will reduce the cases of dispute between landlord and tenant. This step is being taken to protect the interests of both the parties. Now, under the rent agreement for one year, a minimum stamp duty of Rs 500 to a maximum of Rs 20,000 will be charged.
The minister said that due to the high stamp duty on rent agreements, very few people get it done. At present, the agreement is done on a stamp of only Rs 100, on which there is no legal claim. In Uttar Pradesh, only 86000 rent agreements have been done in a year. This is the situation when the number of people giving their houses, shops and offices on rent is in lakhs.
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Now, according to the new rule, only the terms written in the registered agreement will be legally valid, on which a claim can be made in the court. It is also being told that under the new rule, a separate portal will be prepared for the rent agreement. It will have a fixed format, which can be printed out and saved with you. After affixing the stamp on this format, it will get legal validity.
Under the new rent agreement rule, 2 percent stamp duty of rent will be charged on the agreement up to one year. Stamp duty of Rs 500 on rent up to Rs 2 lakh. Stamp duty of Rs 5 thousand on rent up to Rs 5 lakh. Stamp duty of Rs 20 thousand will be fixed on rent of one crore or more.
