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Major Aspects Of Rent Agreement
Posted by Pradeep Sadanapalli | July 25, 2006 | 365 views
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Loading ...In case you are giving your home on rent or taking a home on rent, the rent agreement plays a pivotal role in determining the rights of the lessor and lessee. The rent agreement, entered into between the lessor and the lessee , is the agreement that contains the terms and conditions subject to which the property has been leased by the lessor to the lessee.Before entering into a lease agreement, the lessee should ensure that the lessor has proper title of the property. The lessor should either be the owner of the property or an authorised power of attorney holder. The lessee may verify the society share certificate in order to ensure that the lessor has the title to the property. The agreement should be signed by the lessor himself or his duly authorised power of attorney.
Common clauses contained in a rent agreement are related to:
1. Details of the lessor and the lessee and their addresses
2. Details of property leased - its location and identification details
3. Declaration by the lessor that he is either the owner of the property or is duly authorised by the owner to give the property on lease
4. The effective date of commencement of the rent agreement and duration 5. Term of the lease
5. The lease rent and the mode of payment
6. Security deposit amount paid, and whether it is interest-free or not and the circumstances when it is refundable
7. Advance rent payable, if any, and the mode of its adjustment
8. Rent increment clause - when the rent can be increased and at what rates
9. Facilities to be included in the rent - Who has access to the common area, garden area etc
10. Payment of municipal dues, property and house taxes
11. Maintenance charges to be paid to the society
12. Routine repair and maintenance expenses of the house
13. Fixtures and fittings to be provided by the lessor or not
14. Grounds of termination of the agreement
15. Notice period required for termination of the lease
16. Registration expenses of lease deed
17. Renewable clauses
18. Details of parking space
19. Details of terrace rights
20. Details of society entry charges payable
The other terms would depend upon the commercial terms which have been agreed to between the parties . There is no prohibition under any statute as to the number of years a lease can be given by the lessor to the lessee. Under the Registration Act, leases of property of more than one year need to be registered. The stamp duty payable depends on the rates prevailing in the respective States.
Source:
www.economictimes.com
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