To promote rental housing in India, the government has formulated a draft directive, the Model Tenancy Act, 2020, to make the transaction beneficial for both landlords and tenants. The provisions established under this model policy should be the guiding principles for the preparation of a lease agreement. According to the union`s housing minister, the policy, which will likely soon replace existing rental housing laws across India, will unleash a crore unit in India`s rental housing markets. Click here to check the format of a lease in English. The “total rent payable” is the total amount of rent, fine, premium or down payment (if any) to be paid under the lease agreement. 5. Upon receipt of the application, the rental authority verifies the name, identity and address of the parties in the form indicated in the first schedule of the law and registers the lease and issues the rent registration number (“T.R. No.” within thirty days from the date of filing of the application. Until a lease is registered with the sub-regulatory office, it has no legal effect. It is for both parties to design and register an agreement with specific conditions.

After the rental agreement has been established, the owner must print it on stamp paper. Once the tenant and landlord have signed the documents in the presence of two witnesses, they must declare them to the sub-regulator after payment of the required fee. It is very important to have a lease since the government of Tamil Nadu has made it mandatory from February 22, 2019. The new laws provide that the competent authorities must register the lease within 90 days. The old Rent Control Act allowed for a derogation from the registration of the lease with the authorities if the rental period was less than 11 months or if the monthly rent was less than fifty thousand rupees. However, with the new laws, all rental contracts, regardless of the length of stay and the amount of monthly rent, must be registered. 2. Any rental agreement concluded between the parties after the entry into force of the law shall be registered with the rental authority within ninety days from the date of performance of such a contract. The application for registration can be requested online at [ ]. After examining the application, the rental authority shall inform the applicant of the presentation of the rental agreement with supporting documents for verification. After reviewing the lease, the rental authority issues the lease registration certificate. Token Advance – Token Advance refers to a small amount of money that the tenant pays to the lessor before signing the rental deed.

The idea is to prevent the landlord from preventing other potential tenants from developing an interest in the property. Once the advance of the tokens is paid, the agreement is considered final. When a party decides to make itself retractable, it is obliged to replace the losses suffered by the other party. There is no fee for the registration of the lease that has been enforced by the government. The portal may charge a low service fee for processing the registration. However, all leases are classified in accordance with current legislation. The new law allows landowners and tenants to sit quietly, as all the terms of the lease are registered and no party can invoke ignorance and claim damages. See also: The most important clauses for each rental agreement As on the day, there is no fee for the registration of the lease.

However, for the provision of the online registration service, the service provider is subject to a service fee equivalent to Rs []. The rental agreement should contain the name and address of the lessor and the tenant, the rental conditions, the duration of the tenancy, the rent and the amount of the deposit, the restrictions for both parties, the conditions for termination of the contract, the conditions for renewal and details of other costs, such as maintenance costs, repairs, etc. . .