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Rental Agreement A Guide on Residential Agreement Format
OVERVIEW In this fast paced world, gaining and retaining trust is a tough task.
Therefore, it is necessary to secure your property with a Rental Agreement. Further, the purpose of drafting this document is to safeguard
and protect the interest of both parties. In today’s blog, we will talk about the concept of Residential Agreement Format.
CONCEPT A rental agreement is a legal document between the landlord (owner) and tenant for a fixed period of time. Through this document, a tenant acquires temporary possession in the property. All the terms and conditions of the tenancy are decided by both parties. However, the renewal of the residential agreement depends on the wish and will of the owner of the property.
- An Insight
CONCEPT OF RENTAL AGREEMENT Further, this written agreement is also known as the Rental Contract, and the parties need to draft it on a stamp
paper. A rent deed that is not duly registered or notorised will have no legal binding force. Thus, a tenant must pay stamp duty as well as
registry charges on the residential agreement.
MEANING OF LANDLORD WHAT YOU NEED TO KNOW In simple terms, the owner of the property is known as the Landlord. A landlord or any person acting on behalf of him/her is entitled to receive a rental amount for the premises. The term “acting on behalf� includes a guardian, trustee, or
receiver.
MEANING OF TENANT Any person who pays the rent for a premise
is known as the tenant of the property. A tenant occupies possession on the permission of the landlord. Further, the term “tenant� includes subtenant as well.
CONTENTS OF RENT AGREEMENT FORMAT • • • • • • • • • • •
Name of the Landlord (Owner); Name of the tenant; Details of the Property; Amount of rent together with the Due Date of Payment and Grace Period; Term of the Residential Agreement; Mode of Paying the Monthly Rent; Charges of Water, Electricity, and Maintenance; Situations of Contract Termination prior to the Expiration Period; Amount of Security Deposit; Process for Handling Emergency Requests; Any other Rules and Regulations.
Types of Residential Agreement Format • Lease Agreement • License Agreement
• Names • Amount of Rent • Duration of Agreement
STANDARD TERMS IN A RENT DEED
• Security Deposits • Terms and Conditions • Utilities • Insurance Clause
• Maintenance and Repairs
STEPS TO CHECK THE LEGAL VALIDITY OF THE RESIDENTIAL AGREEMENT FORMAT
Step 1
Step 2
Step 3
Step 4
Rent Deed is drafted on a Stamp Paper
Both Parties, i.e., tenant and landlord must have signed at the bottom of each page
Both Parties must have signed at the last page of the agreement
Rental Agreement Format must include name, address,
RENTAL AGREEMENT A Rent Deed is a month to month agreement. In a rent deed, the landlord can amend the rules and regulations, amount of rent, and terms of the rent. However, the same is possible only after giving proper notice to the tenant.
LEASE AGREEMENT A Lease Deed is made for a specific time period. In a lease deed, the Lessor does not have the right to modify any rules or regulations or lease terms. A Lessor can make changes only after the expiration of the Lease Deed.
TENURE OF RESIDENTIAL AGREEMENT FORMAT A rental agreement must specify the period of the agreement. Normally, a period of 11 months is considered as the standard time of the rent deed. That means the parties need to get the deed registered and notorised after the expiry of 11 months.
NOTORISATION OF THE RENTAL AGREEMENT FORMAT The owner of the property needs to notarize the rent agreement for renting out an immovable property. The term “Notorisation” denotes that all the documents are correct, and signs are accurate.
Stamp Duty on Rent Deed If a Rent Deed is for more than 11 months, then the parties to the Rental Contract needs to get the Rent Deed stamped. The Stamp Duty and Registration Charges vary from one state to another.
MANDATORY CLAUSES OF A RESIDENTIAL AGREEMENT FORMAT Amount of Rent; Security Deposit and other payments; Duration of Rent Agreement; Terms for the Renewal of Agreement; List of Fitting and Fixtures; Registration of Agreement; Any other Restrictions imposed by Landlord.
CONCLUSION After discussing thoroughly, it can
Reach out to Swarit Advisors to
be summarised that a rent
obtain an end to end assistance and
deed plays a significant role in
legal advice on the residential
safeguarding the rights of both
agreement. Our experts rank high in
landlord and tenant. Further, both
drafting legal documents.
parties must carefully read all the terms and conditions of the before signing.
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