Online Lease Agreement

Types of Lease Agreements

There are numerous types of lease agreements out there and it is important to know what distinguishes them. Below is a brief explanation of each:

• Residential Lease: These mention the start and end dates of the tenancy along with some terms and conditions. However, neither party may terminate the lease without going against the set conditions.
• Commercial Lease: These outline the provisions that are unique to commercial spaces.
• Month-to-Month Lease: These have no particular duration and are automatically renewed each month until either party decides to terminate it with a long enough notice.
• Sublease Agreement: These are only used when an owner allows their tenant to further rent out an already leased space.

How to Create a Lease Agreement?

Most people run away scared once they hear the phrase legal procedure. However, lease agreements are not as complicated as they are made out to be. Listed below, are the simple steps either party needs to carry out to draft a proper agreement:

• The particulars about the parties involved, rental space, rental amount, duration, etc, should be mentioned. 
• Both parties should throw in a few clauses that they want included in the agreement. Unanimity is mandatory for each clause to be added. 
• Once both parties are in complete agreement, they can go ahead and print out the document. However, reviewing the document once before going ahead is a good practice.
• In the end, both parties must sign the document in the presence of at least 2 witnesses to validate the entire process. 

Legal Considerations and Consultations

There are certain things to keep in mind while drafting and finalising a document. Here are a few pointers that can help you out:

• Any lease agreement in India which stipulates less than 12 months does not need to be registered. 
• The prevalent stamp duty owed to the government must be paid by purchasing the stamp paper. This rate will differ from state to state, eg. in Delhi it is 2% of the average annual rent. 
• Both parties must present recent and accurate documents which prove their identity, address, etc.
• Speaking to local legal or real estate experts can also help you abide by certain local laws which are to be followed. 

Using Lease Agreement Templates

As stated above, we have successfully shifted over to the digital age and an online lease agreement is very real and completely legal. Thanks to service providers like NoBroker, owners, and tenants can now remotely draft, digitally sign, and complete a rental agreement even when they are thousands of kilometres away from each other. 

The free online lease agreement templates are available for every type of lease agreement and once you pick the kind you need all you need to do is type in the details and digitally sign it to make it legally valid. 

Common Clauses in Lease Agreements

Every registered lease agreement mentions numerous clauses. These are typically curated in a way that suits a particular case. However, many common clauses can be seen across agreements. They are:

• Renewal Clauses: Renewal clauses are used to either ‘extend’ an ongoing agreement or draft a completely new one. In the former context, either party can carry on the agreement without drafting a new one. However, if there are no clauses for extension, a new agreement must be drafted before the old one expires. 
• Early Termination Clauses: As the name suggests, this clause outlines the scenarios under which the agreement can be terminated before the duration runs out. 
• Pet Policies: This clause is almost always present if the owner does not want any pets on the property.
• Smoking Policies: Similarly, the owner might not allow smoking within the premises. 

However, it is important to remember that the clauses can only be included after both parties are in agreement. 

State-Specific Lease Agreement Requirements

India is a diverse nation with several states in all directions. This diversity also applies to the legal system. Each state has its prevalent rules and regulations. For instance, the stamp duty on a lease agreement is much more in places like Delhi and Mumbai than states like Haryana and Himachal Pradesh. Additionally, the Model Tenancy act, 2021 has only been adopted by four states. Hence, it is always helpful to employ a legal expert to ensure compliance with the local laws. 

Benefits of a Written Lease Agreement

A written lease agreement always comes in handy and the pointers below will explain how:

• Legal Protection: A written and signed agreement is admissible in court. Hence it protects the rights of both the tenant and owner. 
• Clear Expectations: The listed clause, terms, and conditions provide clarity on various fronts and leave nothing hidden or ambiguous. 
• Dispute Resolution: A written agreement can also help avoid courtroom dramas. Smaller disputes can easily be sorted out by referring to the agreement. 

Risks of Not Having a Lease Agreement

Not drafting and using a written agreement, whether online or offline, can have drastic consequences for either party. They are as follows: 

Issues faced by the Tenant

• Owners can abruptly ask the tenants to vacate the space.
• Owners can raise the rent on a whim.
• Tenants will not be able to benefit from the tax exemption via HRA without a written lease agreement.
• These agreements are admissible pieces of evidence and can be used to sort out disputes in court. 

Issues faced by the Owner

• Owners cannot force the tenants to pay for any damage caused to the property.
• The tenant can vacate the flat without notice, leaving the owner without a tenant for the foreseeable future.
• In the event of a rent default, the owner cannot penalise or sue the tenant.
• These agreements are admissible pieces of evidence and can be used to sort out disputes in court. 

Tips for Tenants and Landlords

Tenants and owners all over India enter new lease relationships every day. So here are some pointers you can use as a tenant or owner for your next rental relationship.

Best Practices for Tenants

• Understand your Landlord: Comprehending the challenges faced and responsibilities owned by your landlord will help you have a more transparent and honest relationship with them.
• Be the Best Neighbour: Respect and be kind to your neighbour. Also, helping out in times of need promotes good relations within the community.
• Encourage community involvement: Organising and taking part in community events helps build a network and improves living environments.
• Abide by the Lease Terms: Following the lease clauses helps evade conflicts and promotes an honest relationship with your landlord and neighbours.
• Meet Sanitation Standards: It helps to always ensure that your surroundings are clean.
• Report Issues: Promptly reporting issues regarding maintenance, repairs, security, etc can help prevent minor issues from snowballing. 

Best Practices for Landlords

• Screen Tenants: Hunting down the perfect tenant calls for a thorough process that involves background and credit checks and a comprehensive one-to-one discussion.
• Prompt Maintenance: Addressing maintenance issues or any other problems pointed out by the tenant promptly helps showcase your dedication as a landlord. 
• Clear Communication: Having clear communication with your tenant is crucial to a harmonious relationship. Being accessible to your tenants instils confidence in them.
• Respect Privacy: Tenants have a constitutional right to privacy. Upholding this by notifying before visits is quintessential. 
• Leave Nothing Hidden: Be clear about all the terms and conditions from the get-go so that the tenant has a clear idea of what they are getting into.
• Proactively Solve Problems: Identify potential problems and fix them before they magnify. 

Overall, keeping an open channel for communication between a tenant and landlord goes a long way in establishing a good relationship. Small things like sharing good news, keeping messages simple, minimising maintenance visits, etc can help develop a strong bond. 

NoBroker Lease Agreement Services

Online lease agreement services offered by NoBroker make the entire process seamless and stress-free. You need not be worried about the personal touch to your agreement as every document is drafted exactly how the client wants it. Furthermore, we ensure that there is no omission of any detail or clause.

The portal also scans past lease agreements to check for compliance issues if this is the first online variant. A seamless transition is ensured. Several templates and formats are available for reference in case you want to cross-check. Our platform also helps you clarify any concerns you might have regarding stamp duty charges and rules prevalent in your region. 

Value-added services include amenities like notarization and registration of lease agreements, e-signatures via Aadhar, same-day delivery, tenant verification, and more. Last, but not least, a dedicated and tireless support team that always tends to your queries and comes up with a valid solution.

Why Choose NoBroker for Lease Agreements?

• Team of Legal Professionals: Our team includes working legal professionals who ensure that we stay within the boundaries set by the Constitution.
• Through Understanding of Property Leasing Laws: Our years in the real estate field have helped us imbibe the legalities of property leasing laws through and through.
• Commitment to Delivering High-Quality Agreements: We strive to draft the best lease agreement without any loopholes.
• Timely Execution of Lease Agreement Formalities: We understand the time-sensitive nature of this scenario and always hasten the process without compromising quality.
• Competitive Pricing and Transparent Processes: Our service charges are nominal and less than or at par with our competitors. There are also zero hidden charges here.
• Excellent Track Record and Satisfied Clients: Our services have garnered praise from thousands of customers, some of whom were kind enough to write us testimonials. 

Lease Agreement Templates and Resources

You can find tons of online lease agreement templates on the NoBroker platform. They span all the types of agreements out there and are 100% legally valid. All you need to do is type in your details within the format and make it yours. 

Lease agreements are important documents which safeguards the rights of tenants as well as landlords. Entering a tenancy without an online lease agreement can lead to unnecessary legal hassles for either party. We should always remember to include all the legitimate clauses and details while drafting an agreement. Lastly, tenants and landlords should always uphold the terms and conditions mentioned in the document.