TENANCY AGREEMENT

SUBMITTED TO: SUBMITTED BY:

MR. SATENDER SINGH SIHAG PARAM PARTAP AUJLA
BCOM LLB
ROLL NO. 285/20
What is a tenancy agreement
A tenancy agreement is a legally binding agreement between
the landlord and the tenant. It specifies all the details of the
tenancy agreed upon by the landlord and the tenant. A tenancy
agreement should be in writing and a copy of such agreement
must be handed to the tenant before the speculated tenancy
period. Although in the absence of a written agreement the
Residential Tenancies Act, 1986 will be applicable. The tenancy
agreement must be in conformity with the statutory law.

Tenancy agreements give rights to both parties; for example, it

gives the tenant the right to occupy the accommodation and
the landlord the right to collect the rent. It is the duty of the
tenant to read the agreement before signing it and in case of
not being able to understand any terms and conditions they
must seek legal advice.

Essentials of tenancy agreement

The essential elements of a tenancy agreement are listed
below:

1. The tenancy agreement must contain the legal names of

both the tenant and the landlord.
2. It must also contain the start and end dates of the
tenancy period.
3. The amount of rent agreed upon by the landlord and the
tenant and on the date of each month, it must be
honoured. The mode of payment of the rent should also
be specified in the tenancy agreement.
4. The agreement can further include utility charges such as
electricity bills, gas bills, etc. It might contain
miscellaneous charges like club membership fees,
maintenance charges and parking charges.
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 5. A tenancy agreement often contains a clause for security

deposit which can be refunded at the end of the stipulated
tenancy period. And in case of any damages, the landlord
can deduct the amount from your deposit in accordance
with the terms mentioned in the tenancy agreement.
6. Tenancy agreements must specify the reasons which could
lead to eviction such as damage to the building,
disturbance to the neighbours, failure to make payments,
etc.
7. It is essential for the tenancy agreement to specify the
notice period and penalty clause, in case of a situation of
eviction due to default.
8. A tenancy agreement must be registered. In order to
register one needs to pay stamp duty and registration fee.
Stamp duty varies from state to state and is also
dependent on the duration of the tenancy agreement.

Documents required for a tenancy

agreemen
The documents required for the tenancy agreement are:

1. Proof of the ownership of the property.

2. Property papers such as tax receipts.
3. Two passport photographs of each of the parties and one
copy of each of the witnesses.
4. Documents of the address of both parties and the
witnesses.
5. Route map of the property which will be rented.
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Express terms of a tenancy agreemen

Written tenancy agreemen

Most of the tenancy agreements are written agreements
between the landlord and the tenant. A written agreement
specifies the terms and conditions of the tenancy in a written
form and it must be signed by both the landlord and the tenant
in the presence of two witnesses. A copy of the tenancy
agreement must be given to the tenant and in cases of a joint
tenancy, a copy of the tenancy agreement must be given to
each tenant.

Verbal tenancy agreemen

A verbal tenancy agreement is when there is just a verbal
agreement between the tenant and the landlord. A verbal
agreement decides the basic terms of the tenancy such as the
amount of rent, term of the tenancy, etc. However, all the
rights and obligations of the tenant and landlord must be
implied and in accordance with the law due to the absence of
any written agreement.

Various types of tenancy agreements in Indi

Rent agreemen
A rent agreement is a legally binding contract between the
property owner and the tenant who wishes to occupy the
property for a temporary period. The agreement contains
details, such as the name of the property owner and the
tenant, description of the property, amount of rent, late
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payment charges, grace period, amount of security deposits

and other facilities to which the tenant is entitled.

A rent agreement is of a short duration that is, in India it is for

11 months. The registration of rent agreement is not
mandatory however if the rental period exceeds 11 months it
needs to be compulsorily registered under the Registration act,
1908 or else it would not be admissible as evidence in the
court of law.

Lease agreemen
A lease agreement is for a longer duration than a rent
agreement. It is an agreement between the landlord and the
tenant for a period longer than twelve months. When the
landlord wants to avoid the changes in the sustainable income,
they prefer to put the property on lease. A lease agreement
must be stamped and registered so that it can be provided
before a court of law.

The parties to a lease agreement are known as lessor and

lessee. Unlike a rent agreement, a lease agreement can
continue for a much longer period. Furthermore, a lease
agreement also creates inheritable rights.

Leave and licence agreemen

The leave and licence agreement is governed by the Indian
Easement Act, 1882. In this agreement, the property of the
licensor is occupied by the licence holder. The agreement
grants permission to occupy the property and not rights to the
licence holder. And the property owner that is the licensor
always has an upper hand in the eviction of the occupier.
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Important clauses of a tenancy agreemen

Name of the partie

The tenancy agreement must state the names of the landlord
and the tenant. The names mentioned in the agreement will be
legally obligated to one another and in case of any breach in
the agreement, one party can hold the other accountable.

Duration of tenanc
The tenancy agreement must specify the agreed-upon time for
the tenant to occupy the property. After the expiry of the
specified term of the tenancy, it can be renewed with the
prescribed formality by mutual consent of both parties. It is
crucial to mention the fixed time as it not only protects the
landlord but also the tenant as the landlord cannot force the
tenant to vacate the premises before the due date.

Rental amoun
The amount of rent fixed for the specified period of tenancy
must be mentioned in the tenancy agreement. The date of
every month when it is payable and the mode of payment of
the rent must also be mentioned in the agreement. This clause
protects the parties from the unlawful holding of the money or
payment of the money.

Cost of maintenanc
Some tenancy agreements mention a clause for the cost of
maintenance. Furthermore, apart from the cost of maintenance
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other expenses such as electricity bills, water bills, etc. must

be stated under this clause.

Security deposi
A tenancy agreement often contains a clause for security
deposit which can be refunded at the end of the stipulated
tenancy period. And in case of any damages, the landlord can
deduct the amount from your deposit in accordance with the
terms mentioned in the tenancy agreement.

Amenities attached with the propert

All the amenities attached to the property must be mentioned
in the tenancy agreement. This must be done as a security to
protect both the landlord and his property from any damages
or financial settlement of any repairs during the tenancy
period. This clause must also mention the latest condition of
the property.

Signatur
It is the most important part of the tenancy agreement. After
reading and understanding the terms and conditions of the
tenancy agreement both the landlord and the tenant need to
sign the agreement in front of two witnesses. It assures that
negligence in compliance with the agreement will lead to legal
penalties by either party.

Exit claus
The exit clause states clearance of any other penalties or
resolving any dispute between the landlord and the tenant
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before the termination of the tenancy agreement or before

leaving the property.

Conclusio
A tenancy agreement helps in protecting both parties in case of
any dispute or any breach caused by either party. It provides
security to the property of the owner and also protects tenants
from unlawful demands of the owner. A well-drafted tenancy
agreement consists of all the essential clauses such as the
name of the parties, duration of the tenancy, rental amount,
security deposit, etc. Therefore, it is important to understand
the tenancy before signing it and one must always seek legal
advice in case of failure to understand a clause or in order to
negotiate a clause in the tenancy agreement.
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