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Rent Agreement Sample Format
Important clauses which should be covered in a Rent Agreement
When drafting a rental agreement, including the following clauses can help protect both the landlord and tenant and avoid potential disputes:
- Payments: Clearly state the amounts for rent, monthly maintenance, and security deposit to avoid confusion. Specify the due date for rent payment each month.
- Late Payment Penalty: Outline the penalty or additional charges that the tenant may incur for delayed rent payments.
- Lock-in Period: Specify the minimum duration during which neither party can terminate the contract to prevent unexpected early termination.
- Consequences of Overstay: Clearly state the penalties or charges if the tenant continues to occupy the property after the lease term is over without renewing the agreement.
- Food Habits: If the landlord has specific restrictions on food habits within the property (e.g., no consumption of non-vegetarian food, alcohol, or drugs), explicitly mention those restrictions in the agreement.
- Pets: If the landlord does not permit pets on the property, include a clause stating that pets are not allowed.
- Maintenance and Repairs: Define the responsibilities of both parties regarding property maintenance and repairs. Specify who is responsible for certain types of repairs and how they should be reported and addressed.
- Subletting: Clearly state whether subletting the property is allowed or not. If allowed, outline the conditions and requirements for subletting.
- Security Deposit: Clearly mention the amount of the security deposit and the conditions under which it will be refunded to the tenant at the end of the lease term.
- Notice Period: Specify the notice period required by both parties for early termination of the agreement.
- Entry and Inspection: Establish guidelines for how and when the landlord can enter the property for inspection or maintenance purposes.
- Use of Property: Outline the permissible use of the property by the tenant and any restrictions or prohibitions on certain activities.
- Utilities and Bills: Clarify whether utilities like water, electricity, gas, etc., are included in the rent or need to be paid separately by the tenant.
- Dispute Resolution: Include a clause for dispute resolution, such as mediation or arbitration, to settle any disagreements between the parties.
Note: You have the flexibility to include additional clauses in the rental agreement according to your specific needs, if necessary.
How Do You Register a House Rent Agreement?
Rent agreement that is equal to or more than 12 months has to be registered as a mandatory requirement.
- The original document of ownership required.
- Two witnesses’ signatures are required. The witnesses shouldn’t be related to either of the parties.
- The tenant, landlord, and two witnesses should also submit their passport size photographs along with valid ID proofs for further validation.
- The completed document is then submitted in-person to the Sub Registrar office.
- On the payment of stamp duty and registration charges, your agreement becomes a registered deed.
Why is it important to register a rent agreement?
There are numerous instances wherein parties don’t register their rent agreement to save some cost. The most prominent practice hence is to make a contract for 11 months to avoid the compulsory bracket.
As per the Registration Act, it cannot be admissible as proof if a rental agreement is not registered. It implies that in the event of a dispute between the landlord and the tenant, there is no acceptance of the un-registered rental agreement, and thus, no claim or decision can be taken based on the un-registered rental agreement.
To conclude, it is the responsibility of the landlord to register the agreement. If the landlord fails to do so, as a punishment, he/she will have to pay out INR 5,000 and/or be jailed for up to three months. Hence, make sure to have a rent agreement whenever you decide to rent out your home and vice-versa.