The Registration Act of 1908 makes it compulsory to register a lease if the duration of the tenancy is longer than 11 months. Under the 2019 Model Rental Law, landlords cannot increase pre-tenancy for the entire period for which a lease has been signed. For example, if the lease expires after 11 months, the lessor cannot increase the monthly rent during that period. Only after this period and at the time of registration of the new lease is the lessor legally entitled to make an increase in interest rates that generally does not exceed 10% of the existing amount. In addition, the lessor must announce the tenant three months in advance before increasing the rent in accordance with the bill. Note that notarized leases are not identical to registered documents. In the event of a dispute between the lessor and the tenant, the court will not allow a notarized agreement as evidence. It is therefore important to have the lease properly registered. 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. In case of disagreement in the future, the lease will be one of the priorities of the dispute.

However, there are other factors that, if overlooked, can cause bigger problems. Here are a few things you need to keep in mind – the rental agreement should contain the name and address of the landlord and tenant, the terms of the lease, the rental term, the rent and the amount of the deposit, the restrictions for both parties, the conditions for terminating the contract, the terms of renewal and details of who has to bear other costs like maintenance costs, Repairs, etc. Repairs: the agreement must mention who bears the costs related to wear and tear. As a rule, twenty rupees are used for leases for a period of less than 11 months. From 11 months, it depends on the amount of the annual rent plus the deposit. 1% of the total amount is stamp duty. The omission of certain important clauses in your rental agreement leads to unpleasant disputes in case of disagreement between the tenant and the lessor. Even if the two parties know each other, the ideal is to make a comprehensive agreement to cover your back.

Deposit and token amount: the agreement must clearly mention the deposit and what happens to it when you leave the site. It is also worth mentioning the symbolic amount that the owner received from you. It may seem like a big effort, but now you can use online rental services. LegalDesk offers ready-to-use online rental agreements certified by a lawyer. You can use it to create an agreement in minutes. To prepare a lease, start by creating a draft version after discussing the clauses with your landlord/tenant. There are certain clauses that should never be omitted in a rental agreement, which will be discussed later in the article. Add all the details you want and check the deed as soon as the project is ready….