Model Tenancy Act, 2019

The Model Tenancy Act, 2019 is a proposed tenancy law by the Government of India, designed to overhaul the tenancy market in India.[1][2][3]

In the maiden budget speech in 2019, finance minister Nirmala Sitharaman, spoke about creating the Model Tenancy Act to replace the archaic rental laws of the country, stating that "they do not address the relationship between the lessor and the lessee realistically and fairly".[4] The Act seeks to solve the housing availability deficit and contribute to the Housing for All by 2022.[1]

The Act draft is presently under review by the states and union territories.[1]

Aspects

The Model Tenancy Act seeks to implement the following rules:[5][1]

  1. Formation of Rent Authority department.
  2. Residential housing security deposit is capped at two months and one month for non-residential tenancy.
  3. Penalty on tenants for refusing to vacate the premises after the tenancy agreement expires or is mutually terminated.
  4. Landlord must provide access to basic essentials and utilities, and cannot hike the property rent in the middle of an ongoing tenancy term.
  5. Every executed tenancy agreement has to be reported to the Rent Authority within two months, and a unique identification number will be issued.
  6. Terms of the agreement will be binding on the successors of both the landlord and the tenant.
  7. Tenants cannot sublet the property without permission from the landlord.
  8. Existing tenancies will not be impacted by the Act.
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References
  1. "Model Tenancy Act 2019: 10 things about Tenancy Act every landlord and tenant should know". The Financial Express. 16 July 2019. Retrieved 21 October 2019.
  2. Chakraborty, Nilanjana (29 July 2019). "Is Model Tenancy Act more in favour of landlords or tenants?". Mint. Retrieved 21 October 2019.
  3. "Draft Model Tenancy Act: what govt proposes for house owners, tenants". The Indian Express. 15 July 2019. Retrieved 21 October 2019.
  4. Jhunjhunwala, Sandeep (3 August 2019). "Good for tenants and owners: Model Tenancy Act takes checks most boxes". Business Standard India. Retrieved 21 October 2019.
  5. Writer, Staff (20 July 2019). "From security deposit to rent hike, what draft tenancy law proposes". Mint. Retrieved 21 October 2019.
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