Supreme Court Model Rent Agreement

A model lease-tenant contract was designed by the Supreme Court to reduce landlord-tenant disputes and litigation. According to the model, tenants can stay in the house for 5 years, provided they pay the rent at the market price, increase it by 10% every three years and pay property tax. Therefore, if the rent is paid by the tenants on the basis of the current and dominant market rent, the landlords do not have to evict the tenants from the house. According to the model, in addition to rents, tenants must also pay property tax, water tax, electricity taxes and maintenance costs of the premises. A possible increase in these rates is also the responsibility of the tenants. Minor repairs to the premises may be continued by tenants. However, larger ones should only be carried out with the permission of the owners. During the COVID-19 pandemic, existing leases have taken on greater importance for both landlords and tenants. COVID-19 and the Lockdown are having an extreme impact on businesses around the world and impacting contractual relationships.

Given the circumstances, relevant questions arise as to whether tenants throughout the country are entitled to an exemption from payment of rent and whether landlords have recourse in the event of a dispute arising from rental/lease agreements. Let`s look at it like this. If you are a tenant, your landlord would not be able to evict you until the end of the tenancy just because you had an argument. Similarly, the lessor would be within his legal right to distribute a tenant if he realizes that he is involved in faults. A tenant could not leave after neglecting his responsibilities if there is a binding agreement. Laws are usually overturned in favor of the owners. It is precisely for this reason that we see millennial staff adopting the co-life model, which reduces the chances of owners obtaining an income with their immobilized wealth. Owners also do not find it lucrative enough to rent their premises, considering that there is no authority like the RERA to regulate this segment and that disputes continue constantly. The Model Tenancy Act, 2019, proposes to establish such authorities in the states. There are currently archaic laws in the Indian rental real estate market, which first came into force after World War I in 1908. .

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