What are the Types of Tenancy Agreements in India?

In India, renting a house may appear to be a two-step process. Selecting a rentable apartment is the first step. Moving in and negotiating rent is the next step. Or at least, this is what I used to think before I moved into a rental house. It was then that I realised that there is a third step that involves signing the tenancy agreement. In the event of a dispute, this document could become a source of contention if it was executed negligently. That is why I will tell you the types of rental agreements.

But before I tell you the different types of tenancy agreements, I will tell you what a tenancy agreement means.

A tenancy agreement is an authority record that characterises the landowner-inhabitant relationship. It specifies the terms of a rent or lease partnership between the property owner and the tenant. You will be permitted to occupy a property in accordance with the tenancy agreement as a tenant.

What are the types of tenancy agreements in India?

• Rent Agreement

A legal contract between a property owner and a tenant is referred to as a rent agreement. Names of both parties, a description of the property, the rent amount, the security deposit, late payment penalties, a grace period, amenities for the tenant, parking rights, property maintenance, and responsibilities for repairs are all mentioned in the agreement.

As a general rule, lease arrangements are finished paperwork for a considerable length of time or less in India. The registration of a rent agreement is not required by law.

• Lease Agreement

A legal contract between a landlord and a tenant is referred to as a lease agreement. A lease allows a tenant to use the property for a set amount of time. This time span is by and large over a year and can reach out to any term as concurred by the two gatherings.

A rent understanding must be enrolled for it to become legitimate. When you sign and register a rent understanding, no party can change the agreements referenced in the arrangement.

• Leave and License Agreement

A landlord and a tenant sign a leave and license agreement. It gives the licensee (tenant) permission to live on the property of the licensor (landlord). The Leave and License agreement, not the tenancy, grants permission to occupy the property as a licensee. A license and leave agreement must be registered.

These are the types of rental agreements that you should be aware of.