Rent agreements for a term of more than 11 months are compulsorily registrable under the Registration Act, 1908. This is why most residential rent agreements in India are structured as 11-month agreements (with the intention to renew) — to avoid the registration requirement and associated stamp duty. An unregistered rent agreement for over 11 months is not admissible as evidence of the lease terms in court and cannot be used to evict a tenant. For commercial leases, registration is the norm regardless of duration.

Stamp duty on rent agreements is governed by the state stamp act and varies significantly. As examples: Karnataka charges 0.5% of total rent for the term. Maharashtra charges 0.25% of total rent. Delhi uses a slab system. The agreement should be stamped before signing — failure to stamp does not invalidate the contract but makes it inadmissible as evidence. Verbatra's rent agreement tool reminds you to stamp before signing and notes the typical rate for the jurisdiction you select.

There is no statutory cap in most states. Industry practice varies dramatically by city: Bangalore landlords commonly demand 10 months' rent as deposit; Mumbai is closer to 6 months; Delhi NCR is typically 2 to 3 months. The Model Tenancy Act, 2021 (which states can adopt) caps security deposits at 2 months' rent for residential and 6 months' rent for commercial leases. As of writing, this is not in force in most states. Verbatra's rent agreement lets you set the deposit but defaults to 2 to 3 months which is broadly fair and aligns with the Model Act direction.

Only as agreed in the contract. A standard residential rent agreement in India provides for an annual rent escalation of 5% to 10% per year, applied at renewal. The landlord cannot unilaterally increase rent mid-term unless the agreement specifically permits it. For long-term commercial leases, escalation is typically tied to a CPI index or agreed step-up percentages. Verbatra's rent agreement includes a configurable escalation clause.

The agreement should specify the notice period for termination by either party. Industry standard for residential rent agreements is one to two months. For commercial leases, three to six months is typical, often tied to a lock-in period during which neither party can terminate. Without a specified notice period, the Transfer of Property Act default applies: 15 days for monthly tenancies. Verbatra's rent agreement defaults to a two-month notice for residential and three-month notice for commercial.

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