Team  SoOLEGAL

CABINET APPROVES MODEL TENANCY ACT FOR STATES AND UNION TERRITORIES

Team SoOLEGAL 3 Jun 2021 3:13pm

CABINET APPROVES MODEL TENANCY ACT FOR STATES AND UNION TERRITORIES

NEW DELHI - The Union Cabinet, led by Prime Minister Narendra Modi, authorised the Model Tenancy Act (MTA) to all states and Union Territories to enact legislation or amend laws on rental properties

The Model Tenancy Act, according to the Ministry of Housing and Urban Affairs will help in institutionalisation of rental housing by progressively shifting it towards the formal market. The Model Tenancy Act will make it easier to unlock vacant properties for rental housing proposes. It is expected to boost private participation in rental housing as a business strategy for acknowledging the massive housing shortage.

It’s worth noting that MTA will handles numerous issues such as the necessity of a formal rent agreement, security deposit, annual rent increase rate, and the ground for eviction reasons. The Model Act includes provision such as a two-month security deposit limitation for residential properties and a six – month security deposit limitation for non – residential spaces, as well as the appointment of a rent authority to resolve disputes in each district. The Act also mandates that the property owner and the tenant have a written agreement.

Renters will be protected from arbitrary or unreasonable rent increase by the landlord, as well as benefiting in a variety of ways, because the landlord’s responsibilities will be made clear in the rent deed signed between them. The Model Tenancy Act will also benefit landlords because the tenant will not be able to do or act in any way that is not specified in writing in the rent agreement.

The draft Act was published by the Union Housing and Urban Affairs Ministry in July 2019, and distributed to the states and UTs for feedback. 



Tagged: Union Cabinet   Prime Minister   Narendra Modi   Model Tenancy Act   rental properties   Union Housing   Urban Affairs Ministry  
Did you find this write up useful? YES 0 NO 0
Featured Members view all

×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com