Government has approved the model tenancy law, know what is it and how will it benefit you?

 

The Union Cabinet approved the Model Tenancy Act. Under this, a written agreement between the landlord and the tenant will be mandatory before letting the property out. All states and union territories will be able to implement this law in their own right. This law gives equal rights to both the tenant and the landlord. With this, more than one crore properties lying vacant in both urban and rural areas will be let out on rent.

The blueprint for this new model law was first released in 2019.

Understand the new law like this:

• No person may give or take his property on rent without a written agreement.
• There will be no restriction on the amount of rent. Renting out the property will create more confidence among the landlords.
• Any written agreement will have to be submitted to the Rent Authority. It will be equally effective on both urban and rural areas.
• Arrangement for settlement within the stipulated time period (60 days) in case of any dispute between the tenant and the landlord.
• The tenant must take the permission of the landlord before letting the property out to someone else. Without permission, he will not be able to make construction related changes in the property.
• In case of dispute also the tenant will have to pay the rent. During this time he will not have to vacate the property.
• Even in the event of a major incident, the landlord has to allow the tenant to stay for one month.

The Act also provides for two months' security deposit for residential properties, while six months' security deposit for commercial properties.

The state government will also set up rent courts and rent tribunals for speedy resolution of any dispute regarding rental property. They will be headed by an officer of the rank of Deputy Collector or equivalent.

The new law will bring about a major change in the entire legal framework relating to rentals in the country, which will lead to a boom in the rental property in the country. This will also increase the rental property market. Its objective is to provide housing to people of all income groups. This will also get rid of the problem of slums being built in the absence of housing. An advantage of this law will also be that the purchase and sale of property will be completely legal. There will also be no incidents of encroachment on the property or harassment of the tenant by the landlord.

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Dr. Deepak Miglani, Email id.:- legalbuddy@gmail.com

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