Rent Agreement Online in India
A legal paper called a rental agreement is designed to set out the specific rules and obligations that must be obeyed by both the landlord and tenant of a rented property. Although the landlord and tenant typically have a good relationship, it is advisable to have a written rental agreement ready in case they start to disagree or have a lot of issues and misunderstandings.
Executing a Rental Agreement
The lessor or lessee of a residential property can use this rental agreement or lease deed format. Both parties sign the agreement to show they agree to the terms set by the lessor. This is a legally binding document that can be referred to by courts if there is a disagreement. The agreement must be printed on a Non-Judicial Stamp Paper worth Rs.100/- or more. Usually, the agreement is signed once the lessee makes a deposit for the rental property. Two copies of the document are made and each party keeps an original copy.
DOWNLOAD FREE FORMAT OF RENT AGREEMENT
a. Download Format of Rent agreement in Word
Rent agreement residential-rental-agreement-format
b. Download Format of Rent agreement in PDF
Terms of Rental Agreement
In India, it is quite common to encounter an 11 month rental agreement or license agreement when engaging in property rental transactions. When landlords rent out their properties, they typically opt for an 11 month period due to the existence of two types of agreements governing property rental in India: lease agreements and leave and license agreements.
Lease Agreement
If a rental contract lasts longer than a year, it must follow strict regulations regarding the amount of rent charged, which generally favor the renter. These regulations defend against unjust eviction and ensure that landlords cannot charge exorbitant fees. Moreover, in the case of lease agreements, the tenant is granted ownership rights, making it more difficult for the landlord to remove them. As a result, landlords tend to avoid agreeing to leases longer than 12 months.
Rental Agreement or License Agreement
In contrast to lease agreements, rental agreements or license agreements typically only last for 11 months, but with the possibility of being renewed. Essentially, a rental agreement is a temporary authorization for the tenant to live in the property. For this reason, rent control laws typically don’t apply in many states. Additionally, landlords have more options for evicting a tenant with an 11-month rental agreement. Therefore, landlords generally prefer this type of agreement with the option to renew at the end of the 11 months.
Rental Agreement Laws in India
Everyone in India is affected by property and real estate laws, particularly the disputes between landlords and tenants which are very common. The present article provides an overview of property rental laws, including rental agreements and leave & license agreements, in India.
11 Month Rental Agreement
In India, it is common to come across rental or license agreements that last for 11 months when engaging in property rental transactions. Most landlords prefer this duration because there are two types of agreements for property rentals in India, namely lease agreements and leave & license agreements.
Rental Agreement
In cases where rental agreements span more than 12 months, tenants are protected by stringent rent control laws that act in their favor. These laws prevent landlords from charging excessive amounts and safeguard tenants from being evicted unfairly and unexpectedly. Furthermore, if a lease agreement is in place, ownership of the property is handed over to the tenant, making it difficult for the landlord to remove them. Consequently, landlords tend to avoid committing to rental agreements that last longer than a year.
Leave & License Agreement
On the contrary, Leave and License agreements are typically signed for an 11-month period, with the possibility of extending the agreement when it lapses. Since an 11-month rental agreement is simply a permit for the tenant to inhabit the area for a brief period, rent control laws do not apply. Additionally, landlords have more options for evicting tenants from the property if the rental agreement is for 11 months. As a result, many landlords favor an 11-month rental agreement that can be renewed at the end of the term.