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Overview: an agreement for rent is made between a landlord and his tenant and lists down the terms and conditions in a proper and clear format for renting out the property (the property may be residential or commercial).
It consists of any and all mutually accepted conditions on which the parties agree to let out/ rent out the property in question. Both the landlord as well the tenant can use this document in case of a legal dispute as an evidence.
Purpose: the purpose of entering into a rent agreement is to make the same legally valid and enforceable between the the parties. In case either party breaches the terms of the agreement, the affected party can always approach the court and get appropriate relief.
Areas of Application of Law: Indian Contract act, Code of civil procedure, Transfer of property act and other special acts –example- Delhi rent control act
This agreement is used for letting out or renting a residential or commercial space and its main purpose is to make certain specific conditions enforceable between the tenant and the landlord in case either party breaches the same.
The agreement needs to be drafted and thereafter printed on a stamp paper of recommended value (as per the applicable law in the state). Thereafter it is to be signed by both the landlord as well as the tenant and be attested by 2 witnesses. In case the agreement is sought to be registered, it can be registered at the office of the concerned sub- registrar / authority. If not then the same agreement suffices. It is however strongly advisable that any agreement of this nature is registered as per the registration act and can be later used as a valid address proof. A registered document also shall have more evidentiary value as opposed to a non registered document.
The rent agreement must contain these clauses including the monthly rent, security deposit (if any), provision for payment of maintenance charges, utility bills like electricity, telephone, water, internet etc, a provision in case of responsibility for getting any repairs, changes/ alterations done to the property. Responsibilities of both the landlord as well as that of the tenant, termination and extension clauses, increase in rent and the value decided etc. However, most importantly, it should be kept in mind that the property in question to be rented or let out must be properly described.
Another important aspect to be properly described in the agreement is the power of the landlord to inspect the property. It must be noted that any landlord or his authorised personnel have the right to visit and inspect his property. They can do so during the term of the rent agreement however, an advance notice of such visit needs to be provided beforehand to the tenant. This must form a part of the agreement. Secondly, the notice of termination of the agreement and the time to evict must be clearly stated. A sufficient advance notice must be given by either party for termination of the agreement.
Documents required to be submitted in the court if any: In case of any dispute the rent receipts, the rent agreement and photocopy of cheques through which the rent was paid along with any correspondence exchanged between the parties needs to submitted. The correspondence to be submitted shall vary from case to case basis
Punishment/Expected Relief: generally for a dispute arising out of rent agreements, eviction suits, claim for damages and mesne profits are filed. The relief expected/ prayed for is the eviction of the tenant and damages for any unauthorised stay/ usage.
Landmark Judgements: (Title & Link of Judgements)- not applicable since we are dealing with the agreement drafting.
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