A rental agreement is a legal document by law, also known as contract between the landlord (holder of the property) &tenant for a fixed period of time that covers the pre-discussed terms &conditions under which the tenant has the temporary possession of the landlord property.
Rental agreements are entered into for a period of 11 months, with an option to renew the agreement at the expiration of the agreement. The tenure of the contract can be renewed if the owner of the property wishes to. The terms and conditions can be changed according to the understanding between the tenant and landlord.
Lease deed is a legitimate document which lays out the stipulated terms and conditions under which the property is leased out. Lease deed must contain information about the lessor, lessee, tenure of lease, lease payments payable and other terms to be followed by the lessee and lessor during the lease term. Also, the right to ownership of the property gets transferred from the owner to the tenants in case of a lease/rental agreement, making it owner for the landlord to vacate a tenant. Hence, most owners do not favor to enter into registered lease/rental deeds that are over twelve months.
Duration determines the period for which the Residential rental agreement will be in effect.
Rent is the payment in exchange for the property rented out made to the landlord by the tenant.
The amount of deposit required for determination of the conditions for return or adjustment of deposit and purpose of each deposit at the end of the rent dated.
The term of use signifies the conditions concerning the use of the property and the purpose for which the property is to be used.
Insurance signifies whether the tenant is obligatory to insure the property or not
- Repairs and Maintenance:
It includes the Parties (landlord or tenant) responsible for ‘repairs and maintenance’ of the property
DOCUMENTS REQUIRED FOR RENTAL AGREEMENT
- Aadhar card or the receipt received, Any government-issued ID proof
- Submit the original passport, if not Indian
- Power of Attorney should be presented if ID is demonstrating another person forthe registration
- Original copy of proof of ownership (landlord’s property)
- Two in recent times taken passport size photographs.
- Get the Residential rental agreement printed on the stamp paper of the recommended value.
- Description of Property: The lease deed must contain the description of the property like the area, location, address, structure, furniture and fittings, etc.
- Duration: The lease deed must clearly state the time period for which the lease deed will be valid. This provision can also contain the information relating to the renewal of the lease/ rental deed if both the parties wish to remain and renew their earlier contract.
- Rent, Maintenance, and Security: The amount of rent, mode of payment, due dates, security deposit to be paid, interest on delay in payment, etc. must be clarified in the lease deed. The lease deed must also includes the details and responsibility for paying any maintenance charges, utility bills, society charges, etc.
- Termination of Lease: The lease/rental deed must state the reasons for which the lease/rental agreement can be ended. This may contain breach of lease/rental deed, use of the property for unlawful acts, failure to pay rent, irritation by the tenant, etc.
- Subletting: The lease deed must state whether the tenant is allowed to sublet the property or not.
- Dispute Resolution: The agreement must mention the manner in which the legal disputes between the landlord and tenant arising out of breach of the lease deed will be dealt with. This may include Arbitration also.
- Applicable Laws: This provision states the laws which will be applicable over the lessor and lessee in case of a dispute and which court will have jurisdiction to deal with such matters.
Documents Required For Lease Deed
For registered residential lease deed some basic documents are required:
- Lease deed
- Stamp paper
- Receipt of registration fees.
For registered commercial lease deed, below are the documents required:
- Power of attorney/board resolution on company letterhead.
- ID proof like Aadhaar Card, Driving License, Passport, etc.
- Address Proof of the authorized signatory.
- Passports sized colored photographs of the authorized signatory.
- Company PAN Card.
- Company seal/stamp of authorized signatory.
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