As per the Registration Act of 1908, a rental agreement is considered a valid legal document that can be executed between a landlord and tenant. As per the law, it is mandatory to register a rental agreement with the local sub-registrar office. In Andhra Pradesh, the registration charges for rental agreement vary based on the tenure of the lease agreement and the monthly rental value. It is essential to understand the registration charges before executing the rental agreement in Andhra Pradesh.
Registration Charges for Rental Agreement:
In Andhra Pradesh, the registration charges for rental agreement are calculated based on the tenure of the lease agreement and the monthly rental value. The registration charges are levied as per the Andhra Pradesh Registration and Stamps Department. Here is a detailed break-up of the registration charges for rental agreement in Andhra Pradesh:
1. For a lease agreement with a tenure of up to 1 year:
– If the monthly rental value of the property is up to Rs. 15,000, the registration charges will be Rs. 100.
– If the monthly rental value of the property is above Rs. 15,000, the registration charges will be Rs. 500.
2. For a lease agreement with a tenure of more than 1 year up to 5 years:
– If the monthly rental value of the property is up to Rs. 15,000, the registration charges will be Rs. 1,000.
– If the monthly rental value of the property is above Rs. 15,000, the registration charges will be Rs. 5,000.
3. For a lease agreement with a tenure of more than 5 years up to 10 years:
– If the monthly rental value of the property is up to Rs. 15,000, the registration charges will be Rs. 1,500.
– If the monthly rental value of the property is above Rs. 15,000, the registration charges will be Rs. 7,500.
4. For a lease agreement with a tenure of more than 10 years:
– If the monthly rental value of the property is up to Rs. 15,000, the registration charges will be Rs. 2,000.
– If the monthly rental value of the property is above Rs. 15,000, the registration charges will be Rs. 10,000.
Note: In addition to the registration charges, the applicant also needs to pay a stamp duty of 0.5% of the annual rent for a lease agreement with a tenure of less than one year. For lease agreements with a tenure of more than one year, the stamp duty is 1% of the total rent.
Conclusion:
It is essential to register the rental agreement as it acts as a legal document that can be used in case of any disputes. The registration charges for rental agreement in Andhra Pradesh are reasonable, and it is advisable to pay the charges to avoid any legal issues in the future. It is always better to be on the safe side, and paying the registration charges for rental agreement is a good step towards that.
