Craft a Reliable Rental Agreement | Lease Agreement Lawyer
A rent agreement is a contract or agreement between the property owner and the renter who wants to reside in the property for a temporary period. In India, rent agreement is usually made for 11 months; but it can be of less than 11 months also.
If the property is rented out for more than 12 months, then it is compulsory to register the rent agreement as per The Registration Act 1908. Most of the rules of renting and leasing are regulated under The Registration Act 1908 and The Transfer of Property Act 1882.
A Rent Agreement/Lease Agreement Contains the Following:
- Details of the property owner and the renter, plus ID proofs.
- Details of the property, such as its description, location, etc.
- Mention about security deposit, which is usually taken before the renter takes the temporary possession of the property. Generally, the amount of security deposit is the same as the rent amount.
- Mention about the monthly rent to be paid by the renter.
- Duration of rent, which is typically 11 months in India.
- Notice period, which is usually 2 months.
- Outline of entry by the property owner to the premises for inspection.
- Outline of the duties and liabilities by the owner and the renter and who will pay for the repair or damage during the renting period.
- Any other term and condition that the landlord wants to put.
- Sublease clause, if applicable. This depends on the agreement between the landlord and the renter, whether the landlord allows sub-leasing, which means the renter can rent the property to another and become the sub-lessor (one who gives out property for renting).
Pre-Requisites of Drafting and Registering a Rent Agreement/Lease Agreement:
- A qualified lawyer.
- Terms and conditions put by the property owner should already be discussed with the renter and the renter should be agreeing upon it.
- ID proof of the renter and the property owner, such Aadhar Card, PAN card, etc.
- One witness, along with his/her ID proof.
For registration:
- Two witnesses, along with their ID proofs.
- Two passport size photos of the renter and the owner.
- Proof of ownership of property.
- Property papers such tax receipt, etc.
- Route map of the property.
Procedure for Drafting a Rent Agreement/Lease Agreement:
- Â Â Â Contact a qualified lawyer and discuss with him/her about the need to draft a rent or lease agreement.
- The lawyer will draft the rent/lease agreement as per requirements.
- The property owner (lessor) and the renter (lessee) should sign on the document.
- Â The witness should also sign it.
- Â The lawyer should review the agreement and give the final nod that the agreement document is complete.Â
For registration:
- Visit the office of the sub-registrar.
- Pay the stamp duty and the registration fee. The amount of duty and fee can be divided between the renter and the owner.
- Produce all the required documents.
- Both parties will sign in the presence of the sub-registrar.
- The two witnesses will also sign the document.
- The rent agreement gets registered. Both the parties receive a copy of the registered rent/lease agreement.
- A qualified lawyer.
- Terms and conditions put by the property owner should already be discussed with the renter and the renter should be agreeing upon it.
- ID proof of the renter and the property owner, such Aadhar Card, PAN card, etc.
- One witness, along with his/her ID proof.
Benefits to choose service | Rent Agreement Lawyer
When a contract or agreement is signed between two parties, it is better to have a lawyer by your side. Moreover, it is wise to let a lawyer draft the contract (in this case the rent/lease agreement) so that all the legalities are taken care of and nothing is omitted. Lawyers at Online Legal Center will help you draft a customized rent or lease agreement and also educate you about landlord and tenant rights so that you have a hassle-free stay at the property.
In case the agreement is for more than 11 months, registration is mandatory. Your lawyer will also assist you in proper registration of the agreement.
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Frequently Asked Questions (FAQs)
No. The landlord cannot increase the rent during the agreement period. He/she can do so after the agreement expires, i.e., after 11 months, unless it is mentioned in the agreement.
Yes; certain states provide the facility of online registration. Your lawyer will help you in this.
Completion of rent agreement does not always mean the tenant must vacant. The tenant can discuss with the landlord and, if the landlord agrees, both parties can renew the contract (rent agreement) for another 11 months.
However, this discussion should be done prior to 2 months of the expiration of the agreement because, as per law, the landlord must give notice period of 2 months to the tenant, if the landlord does not want to renew the agreement.
In case the tenant overstays despite providing notice period and the completion of the agreement, it is upto the landlord to take legal action or settle the dispute amicably between both parties.
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