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. 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. Stamp duty is essentially a form of tax levied on legal documents in order to make it legally enforceable. In Tamil Nadu, the stamp duty paid for rental contracts is usually equal to 1% of the amount of rent + deposit, regardless of the duration of the rental. A rental contract is a legal document defining the prescribed conditions for the rental of the leased property to be respected between the contracting authority and the tenant. Although the relationship between the client and the tenant is cordial most of the time, it is good to have a written lease when the relationship becomes furious or marred by complaints and misunderstandings. The bill also provides that tenants who extend their stay in rented accommodation, as mentioned in the agreement, are required to pay double the amount of rent for the first two months and four times the rent in the following months. One of the most common features when entering into a real estate rental transaction in India is the prevalence of the 11-month lease or licensing agreements.
An 11-month period is preferred by most landlords when entering into real estate rentals, as there are two types of agreements dealing with the rental of real estate in India, lease and leave & license agreement. 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. 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 both parties know each other, it`s ideal to make a comprehensive deal to cover your back.