PROPERTY REGISTRATION
A Rental Agreement is an agreement between the owner of a property and a renter who wish to have temporary possession of the property. This agreement contains the identification of parties, the property and the amount of rent. The owner of the property may be referred to as the owner and the renter as the tenant.
Types of Rent Agreement:
1) Online Rent Agreement: In Online Rent Agreement, the required information is provided and photographs are uploaded with valid address proof and identity proof.. (depending upon the stamp duty charges and Registration charges)and it takes around two to three working days
2) Notarized Rent Agreement: Notarized Rent Agreement can be made by purchasing stamp paper and filling contents of the agreement. This agreement is validated once it is signed by both the parties owner as well as tenant .it take approximate 2 to 3 hours if the stamp is available.
It is important to remember the following.
1) A person may give his residence space to anyone on rent for a specific time period on a live license basis.
2) After completion of a specific time period, the owner of the premises can occupy their place With the help of the competent authorities.
3) In exchange for using this space, he can take a fixed amount every month.
4) The owner can also take a deposit from the person.
5) On a Leave License basis, a tenant does not get the protection of Mumbai Rent Control Act but the owner can get the benefit.
6) After the expiry of the term, the owner of the space can force the tenant to leave the space with the help of competent authorities.
A rent agreement must mention the following clauses clearly:
● Duration of the tenancy
● Security deposit and monthly rental to be paid
● Penalty for late payment
● Usage charges like electricity, water, cooking gas, telephone, internet and cleaning charges to be borne by the tenant as usual
● Any additional charges like maintenance charges, clubhouse fee, power back-up charges, etc. to be borne by landlord or tenant as applicable
● Provision of parking at a designated space
● Inventory of materials being provided on the premises. This includes all electrical fittings, fans, geysers, furniture and fixtures
● Provisions on the whitewash, maintenance and repairs
● Prohibition on making any structural changes in the premises and undertaking any construction resulting in permanent structures
● Safety and security norms
● General up-keeping and peaceful possession of the premises without causing any disturbances or nuisances
● Lock-in period, if any
● Provisions regarding keeping pets, especially dogs and cats
● Sub-letting, which is generally prohibited by the landlord
● The notice period for vacating the premises
● Conditions for renewal of the agreement
Why We Must Do Rent Agreement?
A rental agreement covers all the terms and conditions on which a property is rented out. The descriptions of the parties involved in the transaction are included. It is extremely necessary and helpful for any tenant to carefully read and analyze the rent agreement. Most tenants do not pay much attention to it, however, since they are not aware of the legal points to be included in a rental agreement. This absence of scrutiny causes legal problems for tenants and landlords.
Owner’s Background Check:
Before signing the agreement, ensure that the real owner of the house is the one who is projecting himself as the landlord. There have been cases of caretakers or relatives showing themselves to be the owner of a house and extracting the rent without the real owner’s knowledge. To verify the credibility of the owner, you can request a look at the official documents such as the NOC and the business complex’s utility bills, etc.
Terms Of Payment:
Cross check the payment information before signing the dotted line. The agreement should include the value of the rent, the timeframe during which the rent is supposed to be paid on a monthly basis, the overhead charges payable by the tenants, the payment form, i.e. cash, cheque or bank transfer, and, if applicable, the penalty charges. Make sure the contract also specifies the amount of the security deposit.
Tenure:
Usually, a rental agreement is signed for 11 months. In your rent agreement, check if the same is the case. Often, if the arrangement is cancelled prior to completion, search the notice period that is there.
The tenant has no way of demanding the right to stay in leased accommodation without a well drafted agreement. Therefore, if you obey all the rules, make sure that you sign the contract.
What Is Lock In Period?
The lock-in clause says that before the specified time, the tenant can not leave the rented house. If the tenant wishes to leave the rented property before the lock in time, he / she must pay the rented amount as stated in the rental agreement for the lock-in period.
Maintenance Charges Clause
In the rental contract, it should be clear who will bear the maintenance costs and whether they are included in the rent or not. It is helpful for owners to keep maintenance fees apart from rent as it will help with the purpose of taxation. This arrangement would decrease their household income.
For example, if rent is Rs 20k and maintenance is Rs 3k. In case owner charge Rs 23k as a rent then this amount will be income from house property. Suppose maintenance is charged separately then income from house property is Rs 20k.
Security Deposit
It was not clear in the some rent agreement whether the security deposit was refundable or non-refundable. “Security Deposit is Refundable,” you should always mention. You can request separate security deposit payment receipt with cheque no, date, and owner’s signature information.
What Should The Landlord Provide For The Tenants?
• Accurate details of the licensed premises, such as the size of the premises, availability of car parking area, etc.
• Willingness and cooperation to get the leave and license agreement duly stamped and registered, at the sub-registrar’s office.
• Uninterrupted use and occupation of the licensed premises.
• Safety and privacy to the licensee, to use and enjoy the licensed premises.
• Clear right, title and interest, to provide the licensee with the license to use and enjoy the licensed premises.
When Can A Landlord Ask The Tenant To Vacate The Property?
Landlords can allow the tenant the pre-decided notice period, to look for alternate accommodation, in case of eviction without cause. In most situations, the following causes can be a reason for eviction:
• Consistent delay in the payments received from the tenant.
• Violation of a term or a condition specified in the agreement.
• Illegal activities on the leased property.
• Serious damage to the rental property.
Important Documents For Owner, Tenant And Witness
• The original proof/evidence of ownership or title of the property.
• Property documents such as Index II or tax receipt or Electricity Bill of the property to be lease.
• Owner must have Aadhar Card and Pan card, Tennent and witnesses must have Aadhar Card.
Limits On Occupancy/Subleasing
This important clause means that only those who have signed the lease can live on the rental property, along with their minor children. Without your permission, tenants will also not be allowed to sub-lease the premises to another party.
Property’s Conditions At Time Of Renting
As a procedure, before renting, always check the condition of the property. It is great to have a clause at the time of renting that specifies the condition of the property in detail. It should provide a description of room by room.
Renewal Of Agreement
A rental contract provides for a short period of tenancy, which is later renewed after the end of the period. Generally, for a term of 11 months, a landlord and a tenant make a lease arrangement, with an option for a periodic renewal. Since the current Rent Control Act is largely in favour of tenants, but only applies to lease agreements of at least 12 months, it helps landlords to take pre-emptive measures for eviction by establishing an 11-month agreement. Extending the rental agreement is very simple. We just need to make few amendments to the existing terms & conditions.
Can Owner Visits Premises Without Tenant Permissions During Term?
No, not without the tenant’s permission. During the term of the rental agreement, the landlord and/or his associates have all the rights to visit and inspect his property. This clause should be reported in detail and the landlord should provide the occupant with ample notice before visiting.
In Case If Fraud Occurs Then What To Do
In recent years, rental scams have increased in different ways. People searching for leased property are often fooled by prevalent rental scams. One of the most popular rental scams is paying in cash prior to signing any rental contract.
When the rental agreement is signed, it is important that both the tenant and the landlord check all the details. Any violation by the tenant or landlord can withdraw the contract. It is important to explicitly state in the agreement how the property will be used. Property harm, misuse of the property, movement of visitors, friends or relatives is often a point of contention between a landlord and a tenant.
If you find any violation, you may demand eviction by providing your tenant with a notice. It is really necessary not to ignore some form of violation and give your tenant a warning at the right time. If you receive a complaint from your property about the actions of your tenant or any illegal activity, then you will be responsible for it. That’s why you ought to be mindful of your rights and responsibilities as an owner.
What Do You Do If You’re A Fraud Victim?
1. Share information with local authorities. They will prosecute if they find the person successfully, and will be able to refund any money you may have lost.
2. Contact the listing website where the listing was found so that they can take it down.
3. Report it to the Federal Commission on Trade. The FTC is responsible for protecting customers, especially when it comes to how your personal information is treated by a company, or whether an entity falsely claims to operate a business.
4. File with the IC3 a complaint. The Internet Crime Complaint Center, a government agency that makes it easy for people to report online crime, is the IC3. In order to better monitor and address internet scams, such as rental listing scams, they collaborate with the FBI and local authorities.
About Police Verification
Police tenant verification includes a background check that identifies any tenants with past convictions, rap sheet, which sounds off to you.
Police verification for tenants is a mandatory step to ensure safety issues that you might have because you will not have eyes and ears on the ground if you live out of state or abroad.
They know that law enforcement has their data and will be at their doorstep at the slightest suspicion of any alleged misconduct if the tenants have undergone police verification. It discourages them from carrying out misdemeanors, destroying properties or participating in criminal activities.
With police verification, any extremist and anti-national elements who lease residential property under a false identity and forged documents can be captured.
The general procedure is as follows:
1. Procure the police verification form at the police station or download it online.
2. Fill in the tenant and (landlord) details as prescribed in the form. Reference numbers may also be asked for.
3. Attach a passport size photo
4. Provide voter ID/Aadhar Card/ Ration Card/Passport/Driver’s License details
5. Sign the form duly
6. Save the acknowledgment receipt after submitting the form.
For Owner:
● Proof of ownership of property, in original Like Index-II, Property Tax or Electricity Bill
● Aadhar card, Pan Card
● Another government ID proof: driving license, voter ID card or passport for Notarized document.
● 2 passport size photos for Notarized document.
For Tenant:
● Government ID proofs mentioning the permanent address. For example, driving license and voter ID card. The PAN card can be used as photo ID proof, but as it does not mention the address, a tenant still requires to submit a copy of the aforementioned documents
● Aadhar Card
● 2 passport size photographs
FAQ
Rental Agreement for 11 months is made to avoid the Strict Rental Law which apply for the 12 months, that is why also the One Month in the count of 12 months is considered as the month of Notice Period Serving by the Owner.
It is a new facility introduced by the Maharashtra government that enables you to register your Leave and License (Rent) Agreement online without visiting the sub-registrar office. Signatures are captured using a biometric device and user details are verified using the Aadhaar system.
It’s mandatory to register to Leave and License in Maharashtra and Tenants not registering their Leave and License may not get Police Clearance now on. As per directives issued by the department of registration and stamps, Police Clearances certificates will not be issued to unregistered agreements.
Yes. POA holder can be the licensor of the property. The registered rent agreement will have POA’s name as the licensor and not Owners name. In case you are out of India, you can try our Remote Rent Agreement E-registration.
Yes. You can register any type of property with us provided it should be a legal entity.
The procedure of making “Online Rent Rent Agreement” has more value for money as it saves the effort of going to the Sub-Registrar office and is more economical than the manual procedure. However, sometimes due to server maintenance the Agreement may take more time than normal.
The following are the basic differences between Online Rent Agreement and and Notarized Rent Agreement
●Registered Rent Agreement/Leave and License Agreement is accepted by the Court of Law, however Notarised Rent Agreement has no Legal Significance
●Registered Rent Agreement has to be registered by the Sub-registrar office and so registration fee is charged. However, Notarized agreement is only notarized
No Hard copy of the agreement is provided for Online Registered Rent Agreement. Only Soft copies of the approved Registered Rent Agreement (By the sub-registrar officer) is sent through email. The print out can be taken and used as Hard copy. For more details read the blog on Authenticity of Online Registered Rent Agreement.
The responsibility of registering Leave and License Agreement lies with the licensor and in absence of it, the licensor may face conviction with imprisonment which may extend to three months or with fine not exceeding rupees five thousand or with both.