Supreme Court's model rent agreement assures tenant 5 yrs' stay
as drafted a model landlord-tenant agreement promising tenants five years of peaceful stay in the premises if they give rent at market rate, increase it by 10% every three years and pay the property tax for the house.
It asked the tenants to pay up every charge accrued on the house to enable the landlord get the rentals without any deduction.
"If the present and prevalent market rent assessed and fixed between the parties is paid by the tenant, the landlord shall not be entitled to bring any action for his eviction against such a tenant at least for a period of five years.
Thus, for five years the tenant shall enjoy immunity from being evicted from the premises," the court said. The court realized that in most landlord-tenant disputes, there were no written contracts and the tenants took advantage of the situation because of the slow process of rent control laws and the judicial process involved in eviction.
The court said adherence to these guidelines could considerably bring down litigation. This judgment would not affect the tenancy governed by existing lease deeds or specific contracts between the landlord and tenant.
It found tenants occupying the property by paying rent at a rate determined 20-25 years ago, and said half of the landlord-tenant disputes would not have reached the courts if the tenants agreed to pay rent at market rate.
Writing from personal and judicial experience, the court said: "We deem it our duty and obligation to fix some guidelines and norms for such type of litigation, so as to minimize the landlord-tenant litigation at all levels."
It said: "The tenant must enhance the rent according to the terms of the agreement or at least by 10% after every three years. If the rent is too low in comparison to the market rent having been fixed almost 20 to 25 years back, then the present market rate should be worked out."
It should be determined either on the basis of valuation report or reliable estimates of building rentals in surrounding areas let out recently, said Justice Bhandari, who authored the judgment for the bench.
"The rent should be just, proper and adequate and be fixed keeping in mind the location of the property, type of construction, accessibility with the main road, availability of parking space. Care should be taken that it does not end up being a bonanza for the landlord," it said.
"Apart from the rentals, property tax, water tax, maintenance charges, electricity charges for the actual consumption of the tenanted premises and for common area shall be payable by the tenant only so that the landlord gets the actual rent out of which nothing should be deductible," he said.
"In case there is enhancement in property tax, water tax or maintenance charges, electricity charges then the same shall also be borne by the tenant only," the bench said.
Minor repairs of the premises would be carried out by the tenant from his own pocket and he could not undertake any major repairs, requiring reimbursement, without prior permission from the landlord, the bench said.
"If any major repairs are carried out then in that case only after obtaining permission from the landlord in writing, the same shall be carried out and modalities with regard to adjustment of the amount spent thereon, would have to be worked out between the parties," the court said.
Please explain about above Supreme Court's model rent agreement.