According to the Registration Act of 1908, registration of a rental agreement in India is required if it is longer than 12 months. However, if the term of the lease is less than 12 or 11 months, the agreement. In contract does not have to be registered. At least in this , case, the drawing and signing of the contract on stamp paper is legally binding. If the term of the agreement is less than a one year, it must be printed out on paper and stamped by the registry office.
Typical Rental Agreement Clauses :
- Deposits: The amount given extra before so that property owner also feels safe for any problem in future regarding any modification or for non payment .
- Utilities: Which are paid for by the tenant and which are included within the rent.Like all additional facities and services even celebrations and all.
- Conditions of use: Mentions how asset should be used and how things should be done.
- Repairs and maintenance: The landlord or renter is responsible for keeping the property in good condition.
- Rent: The amount paid to landlord and how much amount to be paid and till what dates in exchange of asset.
- Insurance: refers to whether or not the tenant is responsible for property insurance; it is most frequently used in commercial rental agreements.
Types of Rental Agreements That Are Popularly Used
The tenancy agreement for an 11-month period is one of the most prevalent rental agreements in the country. This type of agreement can be extended at the end of its approximately 11-month term. Due to their short duration, such agreements usually do not necessitate registration.
- Long-Term Rental – Long-term leases are recorded and notarized. They are typically signed for residential purposes and include a lump sum deposit rather than a rental income payment.
- Lease of a Commercial Property – Commercial leases or agreements are agreements between businesses and landlords or between two firms. They have no set structure.A lease agreement documents the arrangement of a lease of any possible asset, such as a car or a house, and is valid for the duration specified in the agreement. The right to the property is transferred from the landlords (lessors) to the tenants in the case of lease agreements (lessee). This protects tenants from unexpected or unfair eviction demands and keeps landlords from overcharging tenants. Tenant interests are currently being served by rental control laws.
- Rental agreements, on the other hand, are typically used between the owner of the asset and the tenant to rent assets for a limited time. Rental agreements for residential properties,This agreement allows the landlord to take legal action if a tenant is evicted from the property.
The Rent Control (https://egazette.nic.in/WriteReadData/1958/E-2089-1958-0046-94600.pdf) was enacted by the Government of India with the goal of controlling rent charges while also protecting tenants’ rights in the event of an unauthorised eviction.This law is made by the state government, but it is based on certain rights that tenants and landowners have.Before renting a property (as an owner or a tenant), you should look for certain indicators that ensure a safe transaction.This act formalize legalize renting process in India so that without any problem things take place in India . As renting is one of the biggest source of Income involving many parties and major part of many business .So renting rules are must .
Because rent rates and other details vary by state, here are the guidelines mandated by the Ministry of Housing and Urban Affairs that you can follow.
We have also provided links to the urban rental laws for the states of Maharashtra, Delhi, West Bengal, Tamil Nadu, and Karnataka, which have some of the busiest cities in India, at the end of this article.
The exact laws that are followed by some Indian states. Please read these carefully before signing the agreement:
1. The Maharashtra Rent Control Act, 1999.
2. The Delhi Rent Act, 1995.
3. The West Bengal Premises Tenancy Act, 1997.
4. The Tamil Nadu Buildings (Lease and Rent Control) Act, 1960.
5. The Karnataka Rent Control Act, 2001.
Is it necessary to have a lease in Delhi?
Rent agreements legally bind both the landlord and the tenant to the terms of the contract. In Delhi, it is common practise to sign a lease for up to 11 months. The Registration Act of 1908 requires the registration of a lease agreement if the occupancy tenure specified in the agreement exceeds 12 months. People prefer to enter into a leave and licence agreement (rent agreement) for 11 months to avoid stamp duty and registration fees.As all process is time taking and long and even it is not economical. If the parties agree, they draw a new agreement for the next 11 months when the 11-month period expires.
Is it necessary to register a rental agreement in Delhi?
The Delhi Rent Control Act, 1995 requires a written rent agreement that is registered. If the document is not registered, the consequences of the Registration Act of 1908 apply.
If the rental period is less than 12 months, registration of rent agreements is not required in Delhi. However, it is still recommended that it be registered in order to create a legally enforceable right. Only a registered rent agreement can be used as legal evidence by the parties to settle any legal dispute amicably. Because oral agreements cannot be recorded, they have no legal standing.
One of the leading case related to rent agreements /laws is Satyawati Sharma (Dead) By Lrs vs Union Of India & Another on 16 April, 2008
This article is written by RADHIKA MITTAL, FACULTY OF LAW, DELHI UNIVERSITY.
