Is rental agreement or Lease deed absolutely necessary?
Mohammed Khaleelullah
(Querist) 31 December 2010
This query is : Resolved
Dear experts kindly clarify the following queries:-
1.How safe it is to let out or lease out a property without executing a valid Rental agreement or Lease Deed and also not issuing a proper receipt for the rents received, as long as relations between the two i.e tenant(Lessee)and the Landlord are smooth?
2.In the above circumstances, who is put to much hardship, if the relationship sours in future, and the matter is dragged on to court?
Thanks in advance and good wishes.
Khaleel Ahmed
(Expert) 31 December 2010
In reply to Q.1. if relationship is good , nothing will happened.
Q.2.Both parties will suffer the consequences equally.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 31 December 2010
Thanks in advance sir the landlord will suffer more.
I am for the tenant and as per rent laws of any state no tenant can be evicted once he regularly pays rent and does not do any illegal activities.
N.K.Assumi
(Expert) 31 December 2010
If the oral agreement is clear to both the parties there is nothing to worry, after all where is the law that state that all contract should be in writing?
DEFENSE ADVOCATE.-firmaction@g
(Expert) 01 January 2011
Mr Assumi many times you are contradicting me.
Some times by posting law provisions which has no relevancy in real position and now you are just ignoring the legal provisions which is because you have not gone in depth of the legal provisions.And most of all it seems not handled similar cases.
Please read TP act , any lease for more than one year has to be registered and in some state acts there is prison term for landlord for not getting the lease registered.
Mohammed Khaleelullah
(Querist) 01 January 2011
Thanks to all who have taken pains to give a concrete reply.
H. S. Thukral
(Expert) 03 January 2011
There are two kind of tenancies. One tenancy subject to certain conditions like the rent and period of construction of the building is covered under the rent protection laws. Another tenancy is created and governed by the Transfer of Property Act which in the absence of any written contract is tenancy from month to month ( in case of residential property) and can be terminated by a notice of 15 days.
Now answering to questions you have put:
An agreement of tenancy creates certain obligations and liabilities on both lessor and lesee. There are written covenants which are to be observed by both parties. In the absence of the agreement sometime the tenant might dispute the quantum of rent and try to bring it under rent laws. He can also dispute regarding payment of rent in the absence of rent receipts. However the landlord can avoid this by taking rent by way of cheque. If the rent can not be disputed then in my opinion, landlord position is at advantage in the absence of written contract.
I have also gone through the opinion of my Ld. friends herein. While the opinion of Sh. Shashikumar may hold good in case of tenancies protected by rent laws, Mr. Assumi opinion holds good in case of lease agreements written or oral covered by TPA.
Mr. SKJ is right when he says that all lease agreements of more than one year duration have to be registered but if they are not registered, though there may be mentioning of duration of lease in the agreement yet the lease shall be considered from month to month.
