Significant factors and legalities associated with the rental agreements in India

Submitted by asandil on 5/14/2014

While a typical practice in the greater part of the western world, rental agreements are still not broadly utilized in India. In some Indian metros, individuals have begun to comprehend the significance of rental deeds but still on a large scale, verbal agreements remain the standard method. There was a time when in Indian societal contexts, a man’s statement was everything and a verbal understanding generally used to go in line with an individual’s social and goodwill as his authenticity.

Nonetheless, things are different now. Individuals have started moving hundreds of kilometres away from the place where they are born and brought up. In another city, where everybody is occupied with attempting to fight for oneself; and, as individuals have got more self-centred, verbal kind agreements or commitments have lost their importance.

In this new age, a written rental agreement is a document of great importance. It’s an instrument to secure both, the proprietor and the occupant. A well-composed lease gives a basic bit of confirmation for the proprietor that he (or she) possesses the property and the individual living in the property is only leasing the spot. For the occupant, a composed rent understanding gives assurance against any debate and unlawful budgetary request by the landowner.

A written rental agreement is particularly critical if the inhabitant is giving a security deposit. It is taken as a valid documentary evidence that security deposit that was paid which is to be completely discounted by the proprietor at the end of the rental term. The other way around, a well-furnished rent lease is also of great value for the proprietor in the event that he (or she) is not taking any advance as security deposit. Under such a situation, a proprietor is secured against any unlawful claims of a budgetary repayment at later stages, by the leaseholder.

A rental agreement generally consists of the following:

  • Full legal name of parties, the landlord and the tenant.
  • Start and End date of the rent agreement.
  • Rent amount per month.
  • Date on which the Rent has to be paid.
  • A penalty clause for late payment of rent, if any.
  • Medium of payment for the rent.

It is advisable here that you should have your own legal representative, property agent or person having proper knowledge of drafting a rental agreement. May be, your potential landlord may already have a Lease drafted for you. You can even find many rent agreement templates on the internet. If you give it a search on Google, you will find many lawyers online.

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