In India, the tenant also pays a deposit or advance to the lessor, which must be reimbursed at the time of termination of the contract. Normally, it is calculated somewhere between 2 or 3 months and up to 10 months of rent. The deposit is paid at the time of signing the contract. A rental contract is a legal document defining the prescribed conditions for the rental of the leased property to be respected between the contracting authority and the tenant. Although the relationship between the client and the tenant is cordial most of the time, it is good to have a written lease when the relationship becomes furious or marred by complaints and misunderstandings. When registering the lease, you must pay a stamp duty that varies depending on the city in which it is registered. This amount is paid by purchasing the stamp paper you owe to the government. Electricity, water and maintenance costs are regularly paid by the tenant. No interest is paid on the amount of the lease. One of the most common features when entering into a real estate rental transaction in India is the prevalence of the 11-month lease or licensing agreements. An 11-month period is preferred by most landlords when entering into real estate rentals, as there are two types of agreements dealing with the rental of real estate in India, lease and leave & license agreement.
Some people choose to certify leases, but certification is not a record. Therefore, a notarial deed of lease is never a substitute for a registered deed. The courts do not accept them as evidence in the event of a dispute. Even if the deed is notarized, you must still register it. Housing.com has implemented a fully digital and contactless service to create rental contracts. If you want to complete the formalities quickly and without problems, you just need to fill in the details, create the rental agreement online, sign the contract digitally and mark it in seconds by e-stamp. In order to promote rental housing in India, the government has formulated a draft directive, the Model Tenancy Act, 2020, to make the transaction beneficial for both landlords and tenants….