Big Changes in Uttar Pradesh Rent Agreement Rules, Flats and Houses

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It will now be cheaper to register a rent contract in UP. The state government has decided to cut down the stamp duty. Annual rent up to ₹1 lakh will now cost only ₹500. With this decision, property owners will get the benefit of the new rent control law and there will be fewer cases related to tenancy in courts.

Now you will have to spend a nominal amount for a registered agreement to rent a flat or house etc. The state government is going to reduce the stamp duty on registering the rent agreement to a great extent.

A one-year rent agreement with an annual rent of up to one lakh rupees can be registered for just ₹500.
Similarly, the cost of an agreement for a period of up to 10 years will be two thousand rupees. Even if the annual rent for a period of up to 10 years is up to six lakh rupees, then also a maximum of eight thousand rupees will have to be spent.

Benefit of new rent control law

Currently, two percent stamp duty has to be paid on the average annual rent for registering the rent agreement. This is the reason why most of the flat-landlords and tenants do not get the rent agreement registered.

Since there is no legal requirement to register the 11-month rent agreement, rent agreements are being made on Rs. 100 stamp paper. In such a situation, the landlord has to make rounds from the police station to the court in case of a dispute with the tenant. In view of this, the Yogi government is going to reduce the cost of registering the rent agreement to a nominal amount to provide relief to the landlords.

According to sources, while the cost of registering the rent agreement is being fixed at ₹500 for the annual rent up to ₹1 lakh, the cost will be only ₹1,000 for the rent of ₹1 to ₹3 lakh and ₹2,000 for ₹ 3 to ₹6 lakh.

Registration of a five-year rent agreement will cost ₹1500 to ₹6000 rupees and for a 10-year period, it will cost ₹2000 to ₹8000 rupees.
Stamp and Registration Minister Ravindra Jaiswal said that on the instructions of Chief Minister Yogi Adityanath, preparations are on to reduce the cost of registering a rent agreement as well as simplify the entire process. Soon the related proposal will be implemented as soon as it gets the approval of the cabinet.

Proposed cost of Rent Registration

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