A rental agreement is a legal and binding document that is prepared when a person is lending their house or apartment to another person for living purposes. The rental agreement is a very important document as it specifies the amount of rent, the terms, and conditions of the contract. The rental agreement also acts as a proof of address for the person that is staying in the rental home.
A rental agreement protects the lender as well as the homeowner. It is observed that in many places, the owner would ask the tenant to vacate the premises within a week or less without having a valid reason. If a rental agreement exists, then both the parties will be obligated to give notice of vacating the premises in advance.
It is very important to have a rental agreement built up as the Tamil Nadu government has made it compulsory from 22nd February 2019. The new laws state that the appropriate authorities must register the rental agreement within 90 days. The old rent control act allowed an exception of registering the rent agreement with the authorities if the rent period was less than 11 months or the monthly rent was lesser than fifty thousand rupees. However, with the new laws, all rental agreements, irrespective of the duration of stay and the amount of monthly rent must be registered.
Under the new act, anyone can make the application for the rent agreement to be registered. The landowner, the tenant, or even the property manager. This ensures that at least one part of the three is held responsible if no registration has been sought for. To make the process of registering for a rent agreement easier, the government of Tamil Nadu has opened a new web portal through which the rent agreements can be submitted for registration. Any renewal of the rental agreement is also treated as a fresh application and has to be registered in the online portal.
There are no charges for the registration of the rental agreement that has been applied by the government. The portal might charge a small service fee to process the registration. However, all the rental agreements are to be stamped as per the previous law. With the new act, landowners, as well as tenants, can rest easy as all the terms and conditions of the rental agreement will be registered, and no party can claim ignorance and seek compensation.