Online Lease Agreement in Mumbai

Security Deposits in Mumbai

The terms advance and security deposit are often used in place of each other. However, in reality, the term security deposit refers to the amount submitted by the tenant at the start of the tenancy to safeguard the owner. It protects the owner from any damages caused to the space within the lease agreement term. Every online lease agreement Mumbai clearly states this aspect. The legal limit on security deposits in Mumbai equals 2-3 months’ worth of the rent.

The security deposit clause also says that the owner must return the security deposit once the tenancy period is over. It also states that the owner can deduct the cost of the damages caused to the space during the tenancy. Some agreements may allow for end-of-the-term adjustments with the monthly rent. This sees the tenant not pay the rent for the last 2-3 months as the amount is adjusted with the advance.

The damage inspection can be undertaken by the landlord in the tenant’s presence to sidestep any disputes. 

What is Lease Duration and Renewal?

Every lease agreement Mumbai clearly states the duration the deal is valid for. That said, the duration is always a year or more. It is also important to note that neither party is allied to change the clauses while a term is active. 

Tenants and owners often agree to extend the tenancy beyond the term of the agreement. Such circumstances see renewals being carried out. This also gives the owner a chance to change certain terms and conditions like the rent, security deposit, etc. However, every change needs to be approved by both parties for it to be included in the agreement.

Maharashtra Rent Control Act 

It was 1999 when the Maharashtra Rent Control Act was first proposed to replace the Bombay Rents, Hotel, and Lodging House Rates Control of 1947. However, this change took place in 2020 and numerous provisions are important to note down. They are:

• This act does not apply to spaces owned by the government or local authorities. Additionally, the laws do not apply to Public Service Undertakings as well.

• Property owners are allowed to increase the rent by 4% every year. However, they can also go ahead with a 15% hike (provided the tenant agrees in writing) if renovations are made. In the case of structural repairs, the hike can go up to 25% if the repair work is done by the Maharashtra Housing and Area Development Authority (MHADA). 

• Tenants can get evicted if they construct a permanent structure within the space without prior permission from the owner. The same rule applies if someone related to the tenant or the tenant is a problem causer in the area.

• Landlords are not allowed to stop the supply of essentials like electricity, water, lifts, etc.

• Every online lease agreement Mumbai must be registered with the authority.

• Owners must issue rent receipts every month.

• Owners also possess the right to inspect the property at any time. However, they will need to notify the tenant in advance.

E-Stamping and Stamp Duty for Lease Agreements in Mumbai

Stamp Duty refers to the tax levied on agreements to make them legal. This tax accompanied by registration charges must be paid in full by all the parties involved to uphold the law. Both parties along with two witnesses must visit a public notary to draft the agreement. Once completed, they will all need to sign the document and pay the associated taxes. After the public notary attests to the document, it becomes legally valid. 

However, thanks to NoBroker either the tenant or owner can now get all this done from home or office. Not only can they draft their lease agreement in Mumbai, but they also use digital signatures and register and stamp online. This eliminates all the middlemen and the running around. Here are the charges associated with online lease registration in Mumbai: 

• The flat stamp duty for residential and commercial leases is the same as long as the period is within 5 years. It is calculated as 0.25% of the total rent (monthly rent x total duration)+ 10% of the security deposit+10% of the advance rent (non-refundable deposit). 
• The registration charges are fixed at INR 1000 for urban areas and INR 500 for rural areas.

Documents Needed to Draft a Lease Agreement in Mumbai

The making of every legal document needs some identity and address proofs for verification. The house lease agreement format Mumbai also sees the same rules being applied. Both parties must share copies of the following:

• Aadhar Card
• Driver’s Licence
• Passport
• Voter’s ID

Additionally, the owner must also share the ownership deed of the space and tax receipts about the same. 

With NoBroker’s hassle-free lease services, tenants and property owners can ensure secure, legally compliant agreements without middlemen. Get your lease agreement Maharashtra done online today!

How Can NoBroker Help?

By simply logging on to our portal you gain access to hundreds of agreement drafts. This can help you understand the format better and create the best draft for yourself. Furthermore, you can use digital signatures to sign the document which helps tenants and owners residing in different cities/countries. Our legal experts peruse your document to ensure that it is within the legal lines. Every online lease agreement Mumbai can also be registered and stamped online on the NoBroker portal. So log on today!