How to Apply for Rental Agreement Online — Registration, Format & Stamp Duty

A rental agreement is the foundation of every landlord-tenant relationship. Whether you are renting your first flat or leasing a commercial space, having a properly drafted and registered agreement protects both parties legally. With India's e-Registration portals, you can now complete most of the process online — from purchasing e-stamp paper to scheduling a registration appointment.

This guide covers everything you need to know: types of agreements, the online registration process, stamp duty obligations, essential clauses, and frequently asked questions.

What Is a Rental Agreement?

A rental agreement (also called a rent agreement or tenancy agreement) is a legal contract between a landlord (lessor) and a tenant (lessee) that outlines the terms and conditions for occupying a property. It specifies the rent amount, duration, security deposit, maintenance responsibilities, and rules governing the tenancy.

In India, rental agreements broadly fall into two categories:

• Leave & Licence Agreement — Grants a licence to occupy the property for a defined period (commonly 11 months). The occupant is a licensee, not a tenant, which gives the owner stronger legal rights to reclaim possession. This is the most common type used for residential rentals.
• Lease Agreement — Transfers a leasehold interest in the property, typically for longer durations (1 year or more). A lease grants the tenant stronger occupancy rights under the Transfer of Property Act, 1882.

Tip: Most residential rentals in India use an 11-month Leave & Licence agreement to avoid the mandatory registration requirement under the Registration Act. However, registration is increasingly recommended — and mandatory in some states — even for shorter terms.

Registered vs Unregistered Rental Agreement

Key point: Under Section 17 of the Registration Act, 1908, any lease agreement for a period exceeding 11 months must be registered with the Sub-Registrar. Failure to register makes the document legally unenforceable for the leasehold interest it claims to create.

Even for agreements of 11 months or less, several states (notably Maharashtra) now mandate registration of Leave & Licence agreements.

Online Registration Process — Step by Step

Most Indian states now offer e-Registration portals where you can draft, pay stamp duty, and register your rental agreement online. The exact portal varies by state, but the general process is consistent:

Step 1: Purchase e-Stamp Paper

Visit the SHCIL (Stock Holding Corporation of India Limited) portal or an authorised e-stamp vendor to purchase stamp paper of the required denomination. You can also buy e-stamps through certain bank branches and common service centres.

👉 See our detailed guide: How to Buy e-Stamp Paper Online via SHCIL

Step 2: Draft the Rental Agreement

Prepare the agreement with all essential clauses (listed below). You can use a lawyer, an online legal service, or a standard template. Ensure the draft includes:

• Full details of both parties (name, Aadhaar, PAN, address)
• Property description and address
• Rent amount, security deposit, and payment terms
• Duration and renewal terms
• Signatures of both parties and two witnesses

Step 3: Register on the State e-Registration Portal

Visit your state's registration portal:

• Uttar Pradesh: igrsup.gov.in
• Maharashtra: igrmaharashtra.gov.in
• Karnataka: kaveri2.karnataka.gov.in
• Tamil Nadu: tnreginet.gov.in

Create an account, select "Leave & Licence" or "Rental Agreement" as the document type, and fill in the required details.

Step 4: Pay Stamp Duty and Registration Fees Online

Pay the applicable stamp duty and registration charges through the portal using net banking, debit card, or UPI. The portal will generate a payment receipt.

Step 5: Schedule Appointment (If Required)

Some states require both parties and witnesses to visit the Sub-Registrar's office for biometric verification. Book a slot through the portal. In states like Maharashtra, the entire process — including Aadhaar-based e-sign — can be completed online without a physical visit.

Step 6: Receive Registered Document

After verification, the registered agreement is available for download from the portal. Keep both digital and physical copies for your records.

👉 For property purchase registration, see: How to Register Property Online in India

Stamp Duty and Registration Charges

Stamp duty on rental agreements varies significantly by state. It is calculated based on factors like:

• Monthly rent amount
• Security deposit
• Duration of the agreement
• Whether it is a Leave & Licence or a Lease

Important: Stamp duty rates differ from state to state. Check your state's IGR (Inspector General of Registration) website for current rates. As a general reference:

• Stamp duty is typically a small percentage of the total rent payable over the agreement period, plus a fraction of the security deposit.
• Registration fees are usually a fixed nominal amount (often ₹1,000 or less for residential rentals), but this varies by state.
• Some states offer concessional rates for agreements under 5 years.

Do not rely on outdated rates. Always verify the current stamp duty from your state's official portal before executing the agreement.

Essential Clauses in a Rental Agreement

A well-drafted rental agreement should include these clauses:

1. Parties' Details — Full names, addresses, Aadhaar numbers, and contact details of landlord, tenant, and witnesses.
2. Property Description — Complete address, floor, area (sq. ft.), and any included amenities (parking, furniture, appliances).
3. Rent and Payment Terms — Monthly rent, due date, accepted payment mode, and annual escalation clause (commonly 5–10%).
4. Security Deposit — Amount, terms for refund, and conditions under which deductions may be made.
5. Duration and Renewal — Start date, end date, and whether renewal is automatic or requires a fresh agreement.
6. Maintenance and Repairs — Who bears the cost of minor repairs (usually tenant) vs structural repairs (usually landlord).
7. Purpose of Use — Residential or commercial — subletting restrictions.
8. Notice Period — Typically 1–3 months; must be specified for either party to terminate.
9. Termination Clause — Conditions for early termination, including breach of terms.
10. Dispute Resolution — Jurisdiction and preferred mechanism (mediation, arbitration, or civil court).

Police Verification and Address Proof

In most Indian cities, landlords are required to inform the local police about their tenants. This is both a legal obligation and a safety measure. Many states now allow online police verification through their respective portals.

A registered rental agreement also serves as valid address proof for the tenant — useful for updating your Aadhaar address, opening bank accounts, and other KYC purposes.

👉 Related: How to Apply for Police Clearance Certificate

👉 Related: How to Change Address in Aadhaar Online

Security Deposit Rules

There is no uniform central law governing security deposits, but common practices include:

• Residential rentals: 2–3 months' rent in most cities (up to 6–10 months in cities like Bengaluru).
• Refund: The deposit must be returned at the end of the tenancy, minus legitimate deductions for damages or unpaid dues.
• Receipt: Always get a written receipt for the security deposit. Include the deposit terms clearly in the agreement.

The Model Tenancy Act, 2021 (advisory, adopted by some states) caps security deposits at 2 months' rent for residential and 6 months' rent for commercial properties. Check whether your state has adopted this act.

Notice Period

The notice period is the advance intimation required before either party can terminate the agreement. Standard practice:

• 1 month is most common for 11-month agreements
• 2–3 months for longer lease agreements
• Must be specified in writing in the agreement
• Notice should be served in writing (email or registered post is recommended)

If no notice period is specified, the Transfer of Property Act provides a default of 15 days' notice for month-to-month tenancies.

Rental Agreement Format — Sample Template

Below is a simplified structure. Customise based on your requirements:

LEAVE AND LICENCE AGREEMENT

This Agreement is made on [Date] at [City]

BETWEEN
[Landlord Name], [Address], [Aadhaar No.] (hereinafter "Licensor")

AND
[Tenant Name], [Address], [Aadhaar No.] (hereinafter "Licensee")

WHEREAS the Licensor is the owner of the property at [Full Address]...

TERMS AND CONDITIONS:
1. Period: [Start Date] to [End Date]
2. Monthly Licence Fee: ₹[Amount], payable by [Date] of each month
3. Security Deposit: ₹[Amount], refundable at the end of the term
4. Annual Escalation: [X]% increase upon renewal
5. Maintenance: [Terms]
6. Notice Period: [X] months
7. Purpose: Residential use only
8. Subletting: Not permitted without written consent
9. Termination: [Conditions]
10. Jurisdiction: Courts at [City]

LICENSOR: _____________ (Signature)
LICENSEE: _____________ (Signature)
WITNESS 1: _____________ (Signature)
WITNESS 2: _____________ (Signature)

Recommendation: While templates are a useful starting point, consider having a lawyer review your agreement — especially for high-value or long-duration rentals.

Frequently Asked Questions (FAQ)

Is it mandatory to register a rental agreement in India?

Yes, if the agreement duration exceeds 11 months, registration is mandatory under Section 17 of the Registration Act, 1908. Some states like Maharashtra also require registration of Leave & Licence agreements regardless of duration.

Can I register a rental agreement completely online?

In several states (notably Maharashtra), the entire process — including drafting, stamp duty payment, and Aadhaar-based e-signing — can be completed online. Other states may require a physical visit to the Sub-Registrar's office for biometric verification.

What is the difference between Leave & Licence and Lease?

A Leave & Licence agreement grants permission to occupy without transferring any interest in the property. A Lease transfers a leasehold interest, giving the tenant stronger rights. Most short-term residential rentals use Leave & Licence.

How much stamp duty do I need to pay for a rental agreement?

Stamp duty varies by state and depends on rent, deposit, and duration. Check your state's IGR portal for exact rates. It is typically a small percentage of the total rent over the agreement period.

Can a rental agreement be used as address proof?

Yes. A registered rental agreement is accepted as valid address proof for Aadhaar updates, bank KYC, passport applications, and other government services.

What happens if I don't register a mandatory rental agreement?

An unregistered agreement that was required to be registered cannot be used as primary evidence in court. It also attracts penalties under the Registration Act and relevant state laws.

Who pays the stamp duty — landlord or tenant?

This varies by agreement between the parties. In practice, it is often shared equally or borne by the tenant. The law holds both parties responsible for ensuring proper stamping.

This guide provides general information about rental agreement registration in India. Stamp duty rates, registration fees, and specific procedures vary by state. Always verify current requirements on your state's official registration portal before proceeding.