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Real Estate - What is Model Tenancy Law?


This act was initially discussed by the Finance Minister during the budget announcement 2019-2020. This act was introduced in real estate sector because to make a strong relationship between landlord and tenant.

Now a day the India Government has introduced a major change in real estate sector for promoting the investment easier. On the date 10th of July 2019 The Model Tenancy Law Act was introduced by the Indian Government to protect the dispute between the landlord and tenant in real estate Sector.

What is Model Tenancy Act?

When a dispute arises in the real estate sector between the landlord and tenant then at that time this Model tenancy act will be very useful. In this tenancy act you have to make a mutually agreed contract between the tenant and the landlord. The main motive of that contract that there should be a clear disbursement of money, the money spent on repair and other rule & regulation.

And this act was brought in Indian real estate sector with the hope that in future may be India will be rapid growth in urbanization by implementing this housing law.

Agreement

A Rental agreement have signed by the landlord and the tenant by the both landlord and tenant with the presence of the advocate or respective authority. And that same agreement has to submitted to the real estate rental authority office where as before that rental agreement were submitted to the sub register office. 

  • Then it is the work of the real estate rental authority to update the recent data in their office database which can access by the landlord and the tenant in the online portal. Within the one or two month of executing of the agreement in the real estate rental authority it mandatory to inform of the authority regarding tenancy agreement.
  • After informing to the authority the rental authority will issues a unique identification number to the both of the parties.


Security Deposit

Previously many landlords used to take an advance for 6 to 8 months whereas now a day also in some cities like Bhubaneswar, Kolkata, etc. the landlord are taking an advance of 10 months so in this way many landlords are misusing in the Bhubaneswar real estate sector.

But according to the tenancy law the rental authority has announced that in any cities the landlord can only take advance of 2 months regarding security deposit and that money has to be return when that tenant leaves that property.

Increasing the amount of Rent

According to Model Tenancy Act the landlord cannot increase or change the rent amount within the specific time period. If there is anything mention in the agreement regarding hike of rent, then it is the duty of the landlord to inform the tenant regarding that.

How to get property for rent?

In Kolkata, Mumbai, Bangalore, Bhubaneswar many of the people prefer to live in the middle of city where so according to that suppose a person want to get property in Bhubaneswar real estate locality then that tenant will search house for rent in Bhubaneswar.

But according to this the tenant will get the property but there may be chance that the tenant must not get the property according to the budget so to get such a property Cifiyah is the medium where you can find huge number of house for rent and flat for rent and in this site the only user has given permission to post their ad who follow the tenancy act.