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Agreements form a basic and first part when any relationship is starting. This will also help in setting a legal ground for any setting where in two or more parties are included in the same.
A rent agreement is a binding legal contract created between the owner of the property and the prospective tenant.
When setting an official relationship people tend to miss out some of the certain important points which needs the utmost attention to. Setting of a legal document like agreements will help you set all the legal clauses straight which would also help you protect yourself from any possible lapses or gaps in future leading to disruptions.
The rental agreement which is the base of discussion in this article, is an essential legal document/contract, contains all the details, rules, terms, conditions, and possible required clauses related to renting out a property. It includes items like security deposits first made by the tenant or you, the applicable rent to be paid on monthly, quarterly, yearly or annual basis, details on the property, which should include the size, type of property, address, and course the length or period of the contract. It is crucial that you carefully study the rent agreement's conditions or terms prior to signing it.
There have always been certain instances or experiences that led to some bumps or disruptions along the path for the vast majority of people who have dealt with renting out or in of properties or even the sale of properties or high value items. This could then lead to situations and scenarios which are difficult to deal with as there was no base formed for discipline between the involved parties. And eventually this would lead to tension in the tenant-landlord relationship. To prevent any problems down the road or in the future, it is crucial to negotiate out a leasing agreement with both parties involved in the same.
The Registration Act of 1908 states that if a lease is for a period longer than 1 year which precisely is a period of 12 months, registration of the lease is essential to avoid any future bumps.
The lease is crucial for both the tenant and the landlord because it safeguards their interests in the property and shields the renters from unreasonable demands made by the landlord.
A rental agreement format [house rent agreement format] in India is a legal contract, usually written, executed between the owner and a renter or tenant of a property who desires to have temporary possession of the commercial property or any residential property. The Service Level Agreement describes the term of the rental, the parties, the property, the rent amount for the term and so on. The rent agreement must be free from errors to protect the interests of both parties and the document should serve as evidence in case of a dispute.
The rent agreement should include the names and address of landlord and tenant, terms of the tenancy, period of tenancy, rent and security deposit amount, restrictions on both parties, conditions for termination of agreement, conditions for renewal, charges including company registration In order to make a rent agreement and get it registered, you need to have a copy of the address proof of both tenant and owner along with the witnesses. You may show any of these proofs listed here: Bank Passbook, Aadhar Card, Passport, Ration Card and Driving License as address proof.
You require a rental agreement format in the mentioned below cases:
A rent agreement format is a legal written document that holds the pre-discussed terms and conditions under which the rented place or house or apartment or property is leased out. This written agreement has to be followed by the landlord or the property owner and the tenant. In India, while entering into property rentals, most of the rental agreement format will have a lease period of about 11 months.If it is an 11 month rental agreement format then registration of this rental agreement is not a compulsory.
In India, the rental agreement format is governed by state laws. These agreements fall under the ambit of the Rent Control Act and each state holds its own Rent Control Act. such as Rent Control Act (1958) Delhi, Rent Control Act (1999) Maharashtra, and in our state, Tamil Nadu Buildings (Lease and Rent Control) Act (1960) Chennai govern the rent agreements.
Common contents included in a rental agreement Format are as follows:
For anyone to live in a rented or leased property, whether it be residential, commercial, or whatever, a rent agreement must be registered and signed.
The procedures for filing a rental agreement in India has been discussed below.
Keep in mind that it is crucial to register rental agreements which includes a time frame of more than 1 year or 12 months. Nevertheless, for agreements shorter than a year (i.e., less than 11 months), making sure the document is notarized by a public notary and paying stamp duty is sufficient to make it legally standing and valid.
Step 1:Create a draft of a lease agreement firstly. And here you should list the preferred provisions on rent and the security deposit.
Step 2:Print the leasing agreement on a stamped paper with a value given by the official authorities of the state in which the rental agreement is registered.
Step 3:Obtain the signatures of the landlord or the lessor in the appropriate areas on the rental agreement.
Step 4:Visit the sub-office registrars at the pertinent sub locations with the tenant and landlord.
Step 5:Keep a copy of your ID cards and passport-sized photos on you for personal identification verification and validation.
Step 6:The registration of the rental agreement is finished as soon as the stamp duty is paid. No matter how much a property is worth or how much is being rented out, the fees are normally more than Rs. 1,000.
If a rental setting is in place for a duration greater than 12 months or say 1 year, it must be registered in accordance with the Registration Act of 1908 as mentioned before. However, if the duration is less than 12 or 11 months, it is not necessary to register the rental agreement. In this instance, writing and signing the agreement on paper with a stamp will be acceptable.
If the term of the agreement is less than a year, the rental agreement must be printed on stamp paper obtained from the Sub-Registrar office of the location where the property is located.
Once the rental agreement has been printed on the stamped paper, both the owner and the tenant must sign at the bottom of each page such that it is having a legal validity and standing. To be enforceable, the agreement needs to be signed by two witnesses and include their names and addresses for ensuring that the agreement is not forced.
If the rental agreement is for a period of 12 months or longer, it must be printed on stamp paper and registered with the sub-office registrar of the area where the rented property is located. Both the landlord and the tenant must sign the lease in person at the Sub-office Registrar's office. They are required to sign the agreement at the bottom of each page of the stamp paper it is written on in the presence of the Registrar.
Upon making the required payments, the stamp document must be signed by two witnesses and registered.
Indian Rental Agreement | Agreement of Renting a House This Rent agreement is hereby performed at ____________ on this ________ day of ___________ between: ________________ son of _________________ R/o ______________________ (hereinafter referred to as First party/landlord) this term would include his heirs, legal representatives, successors, and assigns etc. AND _________________ son of _________________, resident of _________________________________ (hereinafter called the tenant/Renter/Second party) of the other part, which expression shall mean and include his heirs, legal representatives, successors, and assigns etc. The premise is in the possession of the owner, the first party with residential House or apartment of Flat No. _____________________________________ and he has agreed to let out the said flat or house or property on a monthly rent basis to the tenant/second party.
NOW THIS AGREEMENT WITNESSETH AS UNDER: –
1. The monthly rental of the agreement property is agreed and fixed at Rs___________/-(Rupees) per month excluding electricity, water and other incidental charges.
2. This rental period is in effect from 1st on the agreed month till 11 months. 1st day of _______________
3. The tenant or the renter should deposit a sum of Rs. ____________/- (Rupees __________ only) as the security amount, which can be adjusted/ refunded at the time of vacating the rented premises.
4. The tenant should use the property for residential purpose only and should not use for any commercial purpose
5. The tenant has no rights or power to sub-let or art with a certain portion or part of the property to any person.
6. In case the tenant fails to pay rent for two months or more, then the landlord can ask the renter to vacate the premises.
7. The tenant has to pay the electricity bills every month on his own responsibility and this amount is not included in the monthly rental ___________.
8. The tenant has to keep the rental premise in a good condition and maintain all the fittings and fixtures properly (the second party shall not damage the fixtures and fittings and maintain them properly). In case there is any damage, the tenant has to bear the repair charges himself.
9. The rented premise should be maintained the way it has been rented out to the tenant. The tenant or renter cannot make any alterations or construction to the residential premise or house or apartment without the permission of the owner of the premises or landlord.
10. The landlord of the property or any authorized person on the behalf of the owner has a right to inspect the rented property or residential premise at any mutually convenient time.
11. In case the tenant or the renter decides to vacate the premise upon completion of the rental agreement period then both the parties (landlord and tenant) should serve one month notice to each other.
12. Whatever terms and conditions are mentioned in the rental agreement is abiding by both the parties then these terms and conditions are final and are irrevocable.
This agreement is agreed and signed by both the parties (owner and the tenant) on this day, date, month and year in the presence of witnesses at _____________. WITNESSES: – 1- FIRST PARTY 2- SECOND PARTY ___________ (name of the owner or landlord) _________________ (name of the proposed Company) Lessor Lessee You can modify the terms and conditions of the agreement of renting a house according to your understanding with the tenant/landlord. The notarized agreement does not consider a registered agreement. Tenants or renters need to pay stamp duty and registry charges on the rental agreement.
Stamp Duty is essentially a form of tax levied on legal documents in return for making them legally effective. In Tamil Nadu, the Stamp Duty paid for rental agreements is usually 1% of rent+deposit amount irrespective of the lease term.
Rent agreement format in stamp paper: Usually for rental agreements for period below 11 months, twenty rupees Stamp papers are used for this 11 months rental agreement format. Above 11 months it depends on the amount of annual rent plus security deposit. 1% of the total amount is the Stamp duty. If the required stamp duty is not paid, should any dispute arise and matters go to court, parties involved may have to pay almost ten times the actual Stamp Duty.
Once all the above has been done, now you are all set to print the rental agreement format, but before that go through the following check-list. The mentioned below pointers will ensure that your rental agreement is error-free:
