Tamil Nadu Lease Agreement

    To promote rental housing in India, the government has formulated a draft directive, the Model Tenancy Act, 2020, to make the transaction beneficial for both landlords and tenants. The provisions established under this model policy should be the guiding principles for the preparation of a lease agreement. According to the union`s housing minister, the policy, which will likely soon replace existing rental housing laws across India, will unleash a crore unit in India`s rental housing markets. In accordance with section 35 of the Indian Stamp Act, 1899 [Amended vide Tamil Nadu Act 31 of 2004], the stamp duty payable on the lease, including a sublease agreement, is set out in the table below: a. If the rental period is less than thirty years, one rupee is payable for each Rs.100 or part of the amount of rent, fine, premium or advance, if any;b. If the term of the lease/lease is thirty years or more, up to four rupees for each Rs.100 or part of the amount of rent, fine, premium or down payment, if any, payable;c. If the duration of the lease is longer than eighty-nine years, seven rupees shall be payable for each Rs.100 or part of the amount of the rent, fine, premium or advance, if any:provided that, in any case, if a rental agreement is stamped with the value required for a rental agreement and a lease is subsequently performed under this contract, the tax on this lease may not exceed twenty rupees. Note that notarized leases are not identical to registered documents. In the event of a dispute between the lessor and the tenant, the court will not allow a notarized agreement as evidence. It is therefore important to have the lease properly registered. In case of disagreement in the future, the lease will be one of the priorities of the dispute. However, there are other factors that, if overlooked, can cause bigger problems.

    Here are a few things you should keep in mind – the omission of some important clauses in your rental agreement leads to unpleasant disputes in case of disagreement between the tenant and the landlord. Even if both parties know each other, it`s ideal to make a comprehensive deal to cover your back.