Skip to main content

Recent Developments in Rent Sector


Desk Team LawDocs

1.  Model Tenancy Act, 2019

The new tenancy Act describes the rights and duties of the landowner and the tenant in a detailed manner. The landlord can file for recovery of possession of the premises in the Rent Court. If the tenant has not paid the rent, and is unwilling to evacuate the premises. Then the rent will be calculated as it is up to 6 months which will have to be paid by the tenant as provided in Section 22 of this Act.

Contents  hide 

1 The landlord cannot charge more than two months rent as the security deposit for residential buildings. And not more than one month’s rent for commercial buildings.

2 7. After the commencement of this Model Act, a tenant – without the

3 2. The National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Bill, 2019

4 Related

The landlord cannot charge more than two months rent as the security deposit for residential buildings. And not more than one month’s rent for commercial buildings.

1. The new draft Model Tenancy Act, 2019 aims to cap security deposits at two months’ rent for housing and one month’s rent for other properties. However, “although well-intentioned, this cap may hurt landlords in cities where much larger security deposits have been the norm. A two-month security deposit will also not be enough to compensate the landlord if significant damage has been done to the property. 

2. The Act seeks to penalize recalcitrant tenants for refusing to move out of their rental properties after the agreed-upon rental period expires. The landlord will be able to claim double of the monthly rent for two months and four times of the monthly rent after that as compensation. This will put to rest one of the biggest fears of property owners who do not want to risk letting out their properties in India.

3. The Act stipulates that a landlord cannot refuse to provide essential utilities and access to common facilities. This has been a fairly common grouse of tenants in the past.

4. The landlord will also not be able to increase the rent without giving at least three months’ notice to the tenant, and cannot increase rent in the middle of a rental term.

5. Once this Model Act comes into force, no person will be able to let or take on rent any premises except by an agreement in writing.

6. Within 2 months of executing the rental agreement, it will be mandatory for both landlords and tenants to intimate to the Rent Authority about this tenancy agreement. The Rent Authority, within 7 days, will issue a unique identification number to both the parties.

7. After the commencement of this Model Act, a tenant – without the

prior consent in writing of the landowner – won’t be able to sublet whole or part of the premises held by him, or transfer or assign his rights in the tenancy agreement or any part thereof.

8. The terms of agreement executed between a landlord and his tenant will be binding. Upon their successors in the event of the death of the landowner or tenant. In such a case, their successors will have the same rights and obligations. As agreed in the tenancy agreement, for the remaining period of tenancy.

9. It should be noted that the existing tenancies will not get impacted as the Draft Model Tenancy Act will be applicable prospectively.

10. The Central government has shared a copy of the Model Act. With the States and Union Territories (UTs) for their views and comments. The Act, once finalized, will be shared with the States and UTs for adoption.

Industry experts, however, fear that much like in the case of RERA. The rental Act rules are prone to dilution at the state level, since land is essentially a state subject.

The Model Tenancy Act, 2019 may turn out to be a toothless tiger if this happens. And the Centre must ensure that modification of the rules does not happen beyond a reasonable limit.

2. The National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Bill, 2019

This law allows the residents of unauthorized colonies in the NCR region with valid documents. Like power attorney and sale agreement to obtain right of ownership. It also allows Delhi Development Authority to notify a colony for regularisation.


Popular posts from this blog

Attestation , Revocation, Alteration and Revival of Wills

  Author: Amit Sheoran, Symbiosis Law School, Nagpur People were worried about their lives after the corona pandemic. Because in Corona, no one was aware that anything could happen at any time. That is why they start thinking that if they die, then what will happen with their property and, as a result, they start making plans. A question arises in our mind after hearing the word will. What is will? It is defined under 2(h) of the Indian Succession Act, 1925. A will is a testamentary document by which a person bequeaths his property in the name of any other person. It will be effective after the death of the testator. The property will devolve on the person in whose favour it is bequeathed after the death of the testator. A will can be changed, revoked, or altered at any point of time after it is made. A will can be written more than once.All wills are revocable at any time during the life of the person and are confidential documents. A will can be attested, revoked, altered, and also r

Registration of LLP and Laws

  Name – Shweta Pandit College - National Law School Of India University, Bangalore. Introduction- LLP(Limited Liability Partnership) is a limited liability company, you will find the characteristics of both a corporation and a partnership in this form of a company. LLP came into effect in 2008 when the Limited Liability Partnership Act was passed in India..  LLP- Limited Liability Partnership, is a partnership where partners have limited liability and are responsible only for the loss/damage created by themselves and not by any of their partner or partners. Partners in LLP have a fair share of say in the workings of the business.  Registration of LLP- It is a long process to register a LLP, the few steps involved in the process are discussed as follows: First step is to get the DSC, which is a Digital Signature Certificate from the government agencies such as E-Mudra, NSDL, IDRBT Certifying Authority, National Informatics Center, CDAC and each agency has its own costs of providing ser

Indian Depository Receipts: Requisites and Benefits

  Yash Miniyar Maharashtra National Law University, Aurangabad A. INTRODUCTION Depository Receipts are a form of transferable instruments, which aid in the flow of general trade in a stock exchange at a given time. They are classified as financial securities in the form of equity that are issued by listed companies. The depository receipt is a form of certificate which denotes the valid holding of the security or shares of a given company. One of the most recognised and busiest forms of depository receipts in the world is the American Depository Receipts, which allows in trading of shares or securities of foreign companies. These receipts act as a form of investment for potential investors in order to diversify their assets and hold shares of their desired companies. This not only allows the economic diversification but also the geographic diversification. These depositories act as mediums to curb the hindrances or the obstacles which prevented people from making foreign investments,