When it comes to renting real estate in India, advance or bail deposits are an integral part of lease agreements. In most cases, this is a refundable amount that the lessor pays to the tenant at the end of the contract. An advance is usually paid at the time of signing the lease. ______ But have you ever thought about why most home rental deals only last 11 months? Most contracts have a term of 11 months to avoid stamp duty and other related fees. Under the Registration Act 1908, a lease is mandatory if the rental period is longer than 12 months. Yes, you must have a proper lease, which may contain details of all relevant clauses of the lease and documents must be signed between the tenant and the lessor. The agreement must mention that the premises are rented by you. You can also use our customizable and lawyer-verified ready-to-use rentals to save time and money. As far as India is concerned, it is not mandatory to have a lease certified by a notary. However, some property owners prefer to do the same, and it`s a very personal decision. 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.
The provisions established under this model policy should be the guiding principles for the preparation of a lease agreement. According to the union`s housing minister, the policy, which will likely soon replace existing rental housing laws across India, will unleash a crore unit in India`s rental housing markets. The notarial lease is concluded under the direction of an “official” or a “notary” who certifies the document. A notarized lease for real estate is concluded by the tenant or owner. Yes, you can make the deal during the rental period, but make sure the landlord and tenant are trustworthy. Lump sum payments are always made by cheque or net transfer, as no immediate agreement is reached. But try to conclude the agreement within a month. It is very risky to continue for the entire duration without the agreement.
Therefore, if your landlord refuses to conclude the agreement after a month, it is advisable to stop and withdraw the rent payment. Sometimes you may choose not to pursue the deal and may want to recover the token advance paid. In this case, if the owner agrees to repay the full advance, it is good and good. But if the owner suffers a loss of money, he can deduct a sum from the token advance and return the same to you. However, if your reason for terminating the contract is valid, you can recover the full amount. The notary can be done on Rs 100 stamp paper and on 500 rupees of stamp paper, but the stamp paper can vary depending on the rent, which means that if the rent is less than Rs 15000, then we can use 100 rupees of stamp paper and if the rent is more than Rs 15000, we have to use 500 rupees of stamp paper. With our computer, you can calculate the fees on a case-by-case basis….