Rent Agreement in Delhi 2026 — Format, Stamp Duty & Registration Explained

A lease may be made orally with delivery of possession where registration is not required, but a written agreement protects both sides: it fixes the rent and increase, the security deposit and its refund, the lock-in and notice period, who pays electricity, water and maintenance, permitted use, and the condition in which the premises are to be returned. It is also needed as address proof for the tenant, for police verification, and for bank, passport and utility purposes.

For landlords, a clear agreement with a defined period and termination clause is the first document the court will look at in an eviction or recovery suit. For tenants, it evidences the deposit and protects against arbitrary eviction during the agreed period.

Section 107 of the Transfer of Property Act provides that a lease from year to year, for any term exceeding one year, or reserving a yearly rent can be made only by a registered instrument; all other leases may be made by a registered instrument or by oral agreement with delivery of possession. Section 17(1)(d) of the Registration Act makes leases from year to year, for any term exceeding one year or reserving a yearly rent compulsorily registrable.

An agreement for eleven months therefore falls outside compulsory registration and is commonly executed on e-stamp paper and notarised. Notarisation is not registration; it only attests the signatures. Parties who want a longer, enforceable term — for example a commercial lease with a multi-year lock-in — should register the lease.

Under Section 49 of the Registration Act, a document required to be registered which is not registered shall not affect the immovable property comprised in it and shall not be received as evidence of any transaction affecting such property. The proviso allows such a document to be received as evidence of a contract in a suit for specific performance or as evidence of any collateral transaction not required to be effected by a registered instrument.

In Delhi, registration is done at the office of the Sub-Registrar having jurisdiction over the property, with an online appointment through the Revenue Department’s registration system. Both landlord and tenant (or their attorneys) and two witnesses attend for execution and biometric verification. A 2010 Delhi notification shows a registration fee of ₹1,000 per instrument for leases of immovable property; confirm the current fee with the Sub-Registrar before execution.

Stamp duty on a lease in Delhi is charged under Article 35 of Schedule I-A of the Indian Stamp Act, 1899 as applicable to Delhi. As per Schedule I-A as applicable to Delhi (see Shiv Enterprises v. Govt. of NCT of Delhi, Delhi High Court, W.P.(C) 5742/2012, decided on 26.09.2024), where the rent is fixed and no premium is paid: a lease for less than one year attracts the duty of a Bond (Article 15) on the whole amount payable under the lease; a lease of one to five years attracts the duty of a Bond on the average annual rent; and longer leases attract duty as on a Conveyance on a multiple of the average annual rent. Where a premium or advance (other than a refundable security) is paid, additional duty is payable on that amount. Bond duty in Delhi is 2% (Article 15, Schedule I-A as applicable to Delhi, as noted by the Delhi High Court in Bhupender Singh Bhalla v. Neelu Bhalla, decided on 29.10.2013).

Stamp duty is paid through the e-stamp system (SHCIL). Rates can be revised by the Government of NCT of Delhi, so verify the rate in force on the date of execution with the Revenue Department or the Sub-Registrar. An inadequately stamped agreement is liable to be impounded and cannot be acted upon in evidence until the deficit duty and penalty are paid.

Section 3(c) of the Delhi Rent Control Act, 1958 excludes from the Act any premises, residential or not, whose monthly rent exceeds ₹3,500, and Section 3(d) excludes premises constructed after the 1988 amendment for ten years from completion. Most new tenancies in Delhi are therefore outside the Act and are governed by the agreement and the Transfer of Property Act; disputes are decided by the civil court, and Supreme Court has held such TPA tenancy disputes to be arbitrable if the agreement has an arbitration clause (Vidya Drolia, 2020).

Where the Act does apply — older, low-rent tenancies — eviction is possible only on the grounds in Section 14 and before the Rent Controller. In Satyawati Sharma v. Union of India (2008), the Supreme Court held Section 14(1)(e) discriminatory insofar as it confined eviction for bona fide need to premises let for residential purposes.

Every agreement should identify the parties and the premises precisely; state the term, start date and any lock-in; fix the monthly rent, due date, mode of payment and annual escalation; record the security deposit and the conditions and timeline for its refund; allocate electricity, water, maintenance and society charges; restrict use (residential or commercial) and subletting; provide for repairs, inspection and fittings; set the notice period for termination; and provide for handing back vacant possession. A dispute-resolution clause (court or arbitration) and the jurisdiction clause are useful additions.

Tenant police verification is a separate requirement under orders issued by the Delhi Police from time to time and can be done online through the Delhi Police services; landlords should complete it at the start of the tenancy.