LeaseLegal Advice

5 Laws Governing Lease Agreements in India You Should Know About

There are different laws regarding lease agreements, and everyone needs to know about the terms and services. It is always important to get legal help.

 The lease agreement is a contract between two parties in India. The two parties are the landlord and the tenant. The purpose of a lease agreement is to decide who will be responsible for paying the rent, repairs, and other charges associated with the property.

Lease agreements can be written or oral. Oral agreements are usually made between landlords and tenants. Written leases must be in writing and signed by both parties.

How do Rental Agreements and Lease Agreements Differ in India?

A lease agreement defines the rights and responsibilities between a landlord and tenant. Still, it does not limit the length of time for which it will be valid. On the other hand, a rental agreement defines when rent will be paid, along with other terms related to the renting process, such as deposits, fees, and taxes.

1.Lease Agreement

A lease agreement is a contract allowing one party (the lessor) to take possession of property owned by another (the lessee). The lessor has an option to buy the property from the lessee at an agreed-upon price at some point in time during the lease term.

2. Rental Agreement

In contrast, rental agreements are contracts between an owner and a tenant who wishes to live in their house. Their duration usually depends on the situation. For example, if you want to rent out your home while you are away on vacation, it will be considered a short-term rental agreement because you will only be renting it for a few months. However, if you want to rent out your home full-time (every month), it will be considered a long-term rental agreement because it will last for an extended period.

Format of Rent Agreement

What Should Rental and Lease Documents Specify?

A Barebones Look At Sample Lease Agreements

This is a sample agreement for a lease. It covers all essential points, such as rent and security deposits, and should be used as a guide for your agreement. A lease document should Include the following:

  • Rent payment information (including due date)
  • Tenant’s responsibilities and obligations
  • Landlord’s responsibilities and obligations

The Details A Rental Agreement Should Specify

A rental agreement document should specify the following under the common laws governing lease agreements:

  1. The property owner’s name and the tenant’s, as well as their contact information, including an address and phone number;
  2. A full description of the property and its legal boundaries;
  3. The term of the rental agreement (month to month or for a set period);
  4. The rent amount, which may be expressed as an annual amount or per day or per week;
  5. A list of everyday expenses that must be paid by both parties, such as utilities and insurance;
  6. Space for tenants to list any special requests they have for their rental unit;
  7. Information about any pets allowed in units (canine vs. feline vs. other) and whether tenants can keep them on their property or if they must stay with the landlord’s consent only;

That’s not where it ends, of course. Landlords will have different conditions a tenant must agree to before moving in. Depending on the property, you should expect to see other points like parking lots, safety features, and even allowed timings for guests.

How to Stay Safe When Signing A Rental or Lease Agreement

Boxes to Check Off Before You Sign Anything

When renting, there are many things to consider before signing the lease. An excellent place to start is by making sure your prospective landlord is a reputable business and doesn’t have any outstanding debts.

A good landlord should provide you with a copy of their business licence or other documentation proving they can legally own and operate the property. If you see anything out of the ordinary or your landlord tells you that they don’t own the building where they’ve offered you an apartment, it’s best to run as far away from them as possible.

But once you’ve seen the property, read the lease (or rental document) again and ask yourself a few questions:

  1. How much the landlord will charge you in rent. Make sure you get the amount written and signed on a legal document and ask your landlord if there will be rent increases.
  2. How much you’ll have to pay for utilities, such as water and gas.
  3. There are other fees, such as a pet deposit or damage deposit. You should also check up on the fees and deposits you’ll have to return when moving out of the property, so you’re not blindsided by sudden expenses.
  4. Is there anything in there about pets? If so, does it say what kind of pet is allowed? Are there any conditions attached to this? For example, are there rules about how many pets can live at once? Can they be kept in a specific room or area of the house?
  5. When do I have to give my landlord notice before moving out? This is usually within three days, but if there’s an agreement regarding late fees or other penalties for breaking this rule, check that too.
  6. Do I have to pay utility bills while I’m renting here? Can I choose which utilities I use (and pay them separately)? You might need special permission from the landlord if he wants access to your utility bills.
  7. The length of your lease. If it’s only for one year, is it renewable? Is it month-to-month or year-to-year? What’s the first date that could be considered the end of the lease?

What to Do When You Don’t Know

If you’re unsure about these, or if you’re worried that the landlord won’t abide by your rights and responsibilities, then it’s best to find out before signing anything.

If possible, talk to other tenants who have lived at the property before signing an agreement. They could give you insight into how things work at the property and whether or not they were satisfied with their experience there.

The Takeaway

In India, the general rule of thumb is to keep the original signed copy of your lease agreement with you or have it handy in case a landlord or tenant requests it.

If you are a landlord and unfamiliar with these laws, you should be. If you are a tenant, it’s also a good idea to educate yourself. Either way, no one likes getting blindsided by an unexpected expense or finding themselves stuck in an unfavorable lease agreement. Vakilsearch helps those who are looking for governing lease agreements in India. Whether your situation is that of a landlord or a tenant, you will benefit from knowing how the system works and what you can do to protect yourself from possible legal challenges. Happy reading!

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