A lease or rental agreement is a contract that is legally binding. Under this agreement, both the parties – the landlord and the tenant – agree to adhere to the rental laws and the terms of the contract. A leasing agreement is generally made by the real estate agent who is appointed by both the landlord and the tenant.
In order to give the contract some legality, the landlord and the tenant need to sign it in front of two witnesses who are not recipients of the property and are willing to be witnesses. In the majority of the circumstances, the real estate agent also presents as a witness.
There are a couple of things, one needs to keep in mind prior to signing a rental or lease agreement India – so you don’t end up with significant financial consequences. In this blog, we have come up with five factors you need to be aware of before you begin the lease signing process.
Visit the Place
Before looking for residential property, the prospective tenant or renter needs to visit the place. Ensure that you visit the premises at least once to inspect the location. You must not only check the condition of the property but also make sure that all electrical and water connections are functional. It is always a good idea to conduct a walkthrough of the property before you sign the leasing contract. Make a note of the damage you observe even if it’s minimal. Be sure to click pictures and record videos to log the property’s condition.
Understand the Contract
Leasing agreements in India are not easy to comprehend but it is important that you understand the type of tenancy contract you have prior to signing. There are a couple of details that need to be double-checked in particular such as rent tenure, landlord information, security amount, renewal terms, obligations, and rent payment date. Ensure that it is mentioned exactly accurately since it is important to understand what the landlord is willing is alter and what he will not. Examine the landlord’s inspection clauses to check if they make you uneasy.
What the Lease Includes
Check the fine print of the lease contract to make sure you comprehend everything that the rental payment involves. You cannot assume that utilities are built-in the monthly rent. The agreement may also come with other monthly expenditures to be paid by the tenant like the maintenance fee, energy bill, and water bill. Landlords may also charge service fees. You have to check for everything beforehand so as to not be surprised later. The surplus expenses, including who is liable for them, need to be explicitly declared in the leasing contract.
You have to make a security deposit. Ensure that the agreement states the amount and when you’ll be able to get it back after your lease expires.
Notice Period & Penalty
If any party does not adhere to the terms and conditions of the contract, it will become null and void. In such a scenario, the wronged party can seek monetary damages. This is why any leasing agreement needs to include a notice period as well as a penalty for terminating the contract prior to the completion of the designation tenure. In the majority of the cases, there will be a one-month notice period.
In a nutshell, these are the five things you need to be aware of before you sign a lease agreement. Check out IndexTap for an extensive array of properties in MMR that are available for sale and rent.
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