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Rent Agreement Format for Chandigarh
At eSahayak, we offer pre-designed rent agreement format specifically tailored to meet the requirements ofChandigarh. Our format incorporates the relevant clauses and provisions mandated by the local laws, ensuring compliance and legality.
Our rent agreement format for Chandigarh cover essential aspects such as the duration of the agreement, rent fixation, maintenance responsibilities, and other crucial terms and conditions outlined in the Chandigarh Model Tenancy Act, 2020.
With our user-friendly interface, landlords and tenants can easily select and customize the rent agreement to suit their specific needs. You can customise the agreement by filling in the necessary details, including the parties involved, property information, rent amount, and other specific terms and conditions.
Our pre-designed rent agreement format simplifies the process, saving you time and ensuring that your rent agreement accurately reflects the agreement between you and the other party. You can conveniently adapt the format to include additional clauses or provisions based on your unique requirements while adhering to the legal framework provided by the state.
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.
Types of Rental Agreement in Chandigarh
- Commercial Rental Agreement: Such kinds of rental agreements are signed for business or commercial purposes only and hence they rarely have a standard format as the agreement must adapt to the needs of the particular business being considered for agreement. In this kind of rent agreement, a large amount of money is involved and is signed for a long period. Hence, registration and proper stamp duty are rarely overlooked.
- Long-term Rental Agreement: This type of rental agreement is typically used for residential purposes where a huge lump sum is paid in advance and the agreement is for the long-term. Hence, Registration and proper Stamp Duty are important aspects of this kind of agreement.
- 11- Month Rental Agreement: This is the most commonly used agreement format in the state of Chandigarh. The term of this agreement is 11 months at the end of which both parties have the liberty to renew/ terminate the contract. A few months’ worth of rent are collected as a Security deposit. Registration is not compulsory as the term is less than a year and such leases will require the tenant to pay a fixed monthly rent to the landlord. Hence, it is advantageous to go for this arrangement and opt for an 11-month contract. Thus, this arrangement saves money payable towards stamp duty and registration fees.
The Chandigarh Model Tenancy Act, 2020
The Chandigarh Model Tenancy Act, 2020 is a new law that aims to regulate the rental market in Chandigarh. The Act was approved by the Union Cabinet in June 2021 and is expected to be implemented in Chandigarh soon.
The Act provides for a number of new features, including:
- The creation of a Rent Authority to oversee the rental market and resolve disputes.
- The establishment of a Rent Court and a Rent Tribunal to hear appeals and related matters.
- The introduction of a standardized rent agreement format.
- The provision for a fixed term for tenancies, with the option for either party to renew the tenancy at the end of the term.
- The regulation of rent increases, with a cap on the annual increase.
- The protection of tenants from eviction, except in certain specified circumstances.
The Model Tenancy Act is intended to provide a more balanced and equitable framework for the rental market in Chandigarh. It is hoped that the Act will help to reduce disputes between landlords and tenants and promote the growth of the rental market.
Stamp and Registration Charges
Regarding Registration, It is not mandatory for rent agreements with a duration of less than 11 months in Chandigarh. However, if you plan to create an agreement for more than 11 months, registration becomes mandatory.
The stamp and registration charges for rent agreements in Chandigarh are as follows:
- For rent agreements for less than 11 months:
- Stamp duty: Rs. 100
- Registration charge: Nil
- For rent agreements for more than 11 months:
- Stamp duty: 3% of the annual rent
- Registration charge: Rs. 200
It is important to note that these are the standard stamp and registration charges. There may be additional charges depending on the specific circumstances of the rent agreement. For example, if the rent agreement is being registered in a sub-registrar’s office other than the one in the area where the property is located, there may be an additional charge for transportation of the documents. It is also important to note that the Chandigarh Model Tenancy Act, 2020 has not yet been implemented. Once the Act is implemented, the stamp and registration charges for rent agreements may change.