A rental agreement is an official contract signed between the owner of a property and the tenant who wishes to take temporary possession of the property for a said period of time
|Rent / Lease Agreement||Leave and license Agreement|
|Grants exclusive possession of immovable property to tenant.||Provides only a permission to occupy a certain property|
|Eviction is not easily achieved||Makes eviction easier|
|Governed by rent control act||Governed by Indian Contract Act|
|Not revocable by the landlord||Revocable by the landlord|
|Stamp duty is higher||Stamp duty is lower|
|Creates heritable rights||Does not create heritable rights|
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One can create rental agreement online. It is completely free of hassle and requires less time. Online rent agreement is created only by filling in the required information. Once the agreement is created it is mailed to both the parties that are the landlord and the tenant.
According to section 17 in the Registration Act 1908, it is very important to register for leases and rent of immovable property for any term beyond 1 year. Registration is not mandatory as only the stamp duty is applicable for rental agreements of less than one year.
A copy of the address proof of both the parties and witnesses is required in the process. Along with that, a copy of Aadhar card, PAN card, passbook, ration card, driving license, passport any of them can be submitted as address proof.
It is generally advised to consult an expert in regards to writing a rent agreement. Online agreement is also another area where one should take the expertise of a professional. The rent agreement should be simple, explicit and easy to understand contract and should include details regarding the deposit.
A rent agreement should be simple. It should deal with the right person and identify each party correctly. One should agree on a way to resolve disputes and spell out all the details.
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