A tenancy agreement is a written contract between a house owner and tenant. The agreement will cover everything that a house owner and tenant have agreed to with regard to the lease of the property. It is mandatory that the tenants’ agreement has to be in writing, and the landlord has to give the tenant a copy of the agreement before he starts to live in the house.
What are the different agreements between the house owner and tenant in India and what do they contain?
The agreements will contain some basic information, like the name of the owner of the property, the details of the tenant, the terms of the agreement, and the amount of the rent that has to be paid, during the time of occupation. The documents also contain details about the duties and rights of both house owner and tenant. The tenancy agreements in India are of three types- rent agreement, lease agreement, and leave and license agreement.
Why is it important to have a house owner and tenant agreement?
Disputes between the house owner and tenant are very common in India and having a tenant agreement will protect the rights of both the parties involved and make issues manageable. It is an important document that must be read carefully by the house owner and tenant before signing. It is important to have a written agreement to take care of any conflicts that may arise between the two parties in the future due to a variety of reasons like:
- The tenant is renting out the property without telling the landlord
- The landlord has increased the rent without giving any prior notice
- Tenant is setting up and conducting business in the rented house
- The security deposit has not been given back by the landlord
- The tenant has damaged the property
Validity of the agreement
An agreement between the house owner and tenant is not valid and considered illegal without registration. It is not advisable for both parties to get into an agreement that is not registered as it could be risky in case a dispute arises in the future.
It is essential that a rent agreement has to be registered with the sub-registrar’s office for it to have legal validity. It is favourable to both parties, to draft a tenants agreement with all the terms and conditions and get it registered. After drafting of the rent agreement, it has to be printed on a stamp paper. Once the house owner and tenant have signed the documents in the presence of two witnesses, they have to get the agreement registered at the sub-registrar’s office, after paying the required fee.
What Are the Benefits of having a Tenants agreement?
There are many benefits of having a house owner and tenants’ agreement.
- Nobody would want to get tangled in a legal problem. There is a need for a proper legal agreement before giving out a property for rent.
- If you have a registered tenant’s agreement, you will save yourself a lot of legal trouble.
- You cannot get the benefits of the government laws if you do not have a proper agreement between the house owner and tenant that is registered from an authorized government body.
Takeaway
A tenant’s agreement is a legal contract that is created between the house owner and tenant. In this article, we learned in detail that the agreement is an essential document that will include all the necessary information, terms, and conditions, as well as the clauses that are important in giving out a property on rent.
