Online Lease Agreement in Chennai

Security Deposits in Chennai

A security deposit, as the name implies, is an amount paid to the owner before the tenancy begins. The purpose of this amount is to protect the owners from any damages that come onto the property during the tenancy. Every lease agreement format Chennai mentions this in detail. The legal limit of the security deposit set by the Tamil Nadu Regulations of Rights and Responsibilities of Landlords and Tenants (2019) is 2-3 months of the rental amount. 

The landlord is also responsible for returning the deposit promptly once the agreement period is over. However, it should be noted that the owner possesses the right to deduct certain amounts before returning the deposit to the tenant. In the case of damages to the property, the charges for the same may be deducted.  

This can be carried out by organising a final inspection carried out by the owner in the presence of the tenant before the space is vacated. 

What is Lease Duration and Renewal?

Every lease agreement format for house in Chennai clearly states the period the agreement is valid for. This is generally seen to be within one and ten years. It is also useful to know that the terms and conditions stated within the agreement cannot be altered while the term is ongoing. 

Tenants and owners choose to extend the tenancy beyond the agreement term almost every time. In such circumstances, the renewal of the current agreement is needed. This gives the landlord the freedom to add new laws, and change or remove old ones. However, every change included in the new agreement should be agreed upon by the tenant and landlord.

Tamil Nadu Regulations of Rights and Responsibilities of Landlords and Tenants (2019)

The Tamil Nadu Regulations of Rights and Responsibilities of Landlords and Tenants (2019) helps form and maintain harmonious relationships between landlords and tenants. That said, this law has certain provisions which state the rights and liabilities of both parties. Some of them are listed below:

• The act’s retrospective effect states that the laws introduced in 2019 also apply to every lease agreement in Chennai signed before its existence.
• The new act also states that all lease agreements are to be registered irrespective of the duration or terms included within it.
• The landlord must always give a rent receipt to the tenant every month after receiving the rent.
• Every agreement must be in writing.
• The tenant cannot sublet the property without written permission from the owner.
• The agreement can be created by either the tenant, landlord, or property manager.
• Landlords are within their rights to evict tenants who have failed to pay the rent for two months or more. The rent can also be doubled if the tenant does not vacate the premises after the agreement expires. 

E-Stamping and Stamp Duty for Lease Agreements in Chennai

The tax levied on lease agreements that helps make them legal is known as Stamp Duty. This along with the registration charges must be paid for both parties to remain within the limits of the law. They will need to visit a notary public with two other witnesses. Once the lease agreement is signed by both parties, witnesses, and the notary public it is considered legal. 

Thanks to NoBroker, you can now eliminate all the middlemen and efficiently draft, digitally sign, and also get your agreement e-stamped while sitting at home/office. The following charges are levied by the government on various lease agreements:

• For periods within 30 years, the stamp duty is 1% of the average annual rent whereas the same applies for registration with a cap of INR 20,000.
• If the duration is more than 30 years but less than 99 years, the stamp duty escalates to 4% while the registration charges remain at 1%. 
• Similarly, for periods exceeding 99 years, the registration is 1% but the stamp duty is 7%. 

Documents Needed to Draft a Lease Agreement in Chennai

The drafting of every legal document calls for a few identities and address proofs to be submitted for verification. The house lease agreement format Chennai also sees the same rules being applied. Both parties must share copies of the following:

• Aadhar Card
• Driver’s Licence
• Passport
• Voter’s ID

Additionally, the owner must also share the ownership deed of the space and tax receipts about the same. 

How Can NoBroker Help?

By logging on to NoBroker the tenant and/or landlord can draft a lease agreement in Chennai from the comfort of their homes. This convenience also eliminates all the middlemen who delay the process and sometimes ask for extra money. This method proves especially useful when both parties live far away from each other. Our massive database also has hundreds of legally sound formats you can refer to before drafting your own. Our expert legal team also verifies your draft and ensures complete legal compliance. You can also log in to use our many value-added services like aadhar e-sign, tenant verification, same-day delivery and so much more.