Everything you need to know about the Rent Agreement in India?
A majority of the migrant working population in India’s major cities live in rented homes, since homeownership may sometimes be inconvenient or unaffordable. This includes the terms and conditions that shall be binding on both the parties for this, the tenant signs a rent agreement with the landlord.
Tenancy act Draft model
The government has formulated a draft policy for promoting rental housing in India. To make the transaction beneficial for both, landlords and tenants there is the draft Model Tenancy Act, 2020. While drafting a rent agreement, the provisions laid under this model policy, are intended to serve as guiding principles. The policy which replaces the existing laws on rental housing across India will unlock over one crore units in India’s rental housing markets According to the union housing secretary.
The deadline to send their suggestions on the policy document, the draft model tenancy act may soon become a law; with the expiry of October 31, 2020, the process to implement the model act has administration by The Chandigarh union territory.
Legal validity of rent agreement
It has no legal validity until a rent agreement is registered with the sub-registrar’s office. To draft an agreement with specific terms and conditions and to get it registered is in the favor of both parties. The landlord should print it on stamp paper, after drafting the rent agreement. They should register it at the sub-registrar’s office, after paying the required fee, once the tenant and the landlord sign the documents in the presence of two witnesses.
For rent agreement registration Documents needed
Documents needed for Landlord
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- Need of Two passport-sized photos.
- Aadhaar card is a must.
- They should have Identity proof like:-driving license, voter card, or passport.
Documents needed for Tenant
- Two passport-sized photos are compulsory.
- Aadhaar card.
- You must have a Voter ID card.
- For people who are outside of India Passport is a must.
In the rent agreement Details to be included
Details which are included in a standard rent agreement are:
- Tenant and the landlord, Names, and addresses.
- It also included the Signatures of the tenant and the landlord.
- The monthly rental amount should be included.
- It also included the Security deposit.
- Maintenance charges are also included.
- It also mentions the Period of stay.
- All the Responsibilities/rights of the landlord are also mentioned.
- All the Responsibilities/rights of the tenant are mentioned in the agreement of Rent.
Penalty charged for delay in rent payment
As mentioned in the agreement They will be liable to pay double the rent amount for the first two months and in the subsequent months four times the rent, if tenants extending their stay in rented accommodation.
Important terms and conditions for Rent agreement:-
- Important terms for tenants
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- The security deposit and what happens to it, when you leave the premises, must be clearly mentioned in the agreement. Also mention the token amount that is received by the landlord from you.
- If your family members join you in the future the agreement must state the number of occupants.
- The agreement must have to mention the cost of repairs
- Who will be liable to pay the monthly maintenance charges that are also clearly stated in the agreement?
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- Important terms for landlords
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- All the Conditions to vacate your property should be mentioned in the agreement.
- Visiting hours also need to mention in the agreement.
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- Damages to property and their consequences on the tenant should be mentioned.
- It also mentioned the Rules on subletting.
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