Rent agreement, its importance and benefits

A rental agreement is a blessing to both the landlord and the tenant. This legal document is drafted to secure the interest of both parties and it is also considered admissible in the court of law. The entire purpose of having a rent agreement is that it allows you to have convincing address proof and to handle any future disputes. 

Let's take a deep dive into why you should have a rental contract and what benefits it holds for you?

Importance of Rent agreement 

As you deal with properties or rent, there is always a chance that things can go south. Being smart and having a rent agreement are the keys to making it smooth sailing. 

The Registration Act of 1908 says the registration of a rent agreement is of crucial importance if the renting period exceeds the tenure of 12 months. 

The agreement is vital for both the parties, as for the landlord, it preserves his interest in the property, and for the tenant, it safeguards him from unfair demands by the landlord. 

The agreement empowers both the landlord and the tenant in terms of their legal right. A tenancy agreement is a legally binding document that gives the tenant the right to live in the rental property, and the landlord the right to receive rent.

Benefits of a Rent Agreement

For a seamless experience, you need to get a rent agreement registered with the authorized Government body. There are multiple benefits of registering a rental agreement, let's check them out.

Rental Agreement as a Legal Evidence

According to section 10 of the Indian Contract Act, 1872 an oral agreement is equally valid as a written one and it cannot be questioned. But it is not recommended in the case of Landlord and tenant, where issues may occur, for instance, with rules and regulations. Without something in writing, it gives birth to ambiguity. 

Respectable Relationship between Parties

To save the cost, landlords and tenants prefer a verbal rent agreement. Some even document the arrangement and mention terms and conditions but don't get it registered. But, having a written and formal agreement strengthens the landlord and the tenant's relationship as all the rules and regulations, pros and cons are defined accurately in the agreement. It also gives birth to an absolutely commercial relationship where parties are liable to carry out their specific duties.

Seamless Experience:

Online rental agreement enables clients to apply for agreement leasing virtually. This way they can do the rental agreement at home without any need to come down to office. Customers can do their rental agreement at anytime and anywhere on their device. Online rental agreement creates a hassle free and smooth experience for the tenant and also the leaser. 

Immediate Affect

When it comes to accessibility of the rented asset, for the landlord, a registered rental agreement paves an easy way and the asset is made accessible for use straightaway. He doesn't have to wait to apply for the loan or mortgage, approval and authorization, etc. The rental agreement copy acts as a proof that the borrower is under the agreement of law hence it shows the legitimacy of the contract and the individual.

Final thoughts,

In summation, it is in favour of both the parties to get the rent agreement registered with the terms and conditions mentioned. Merely the signatures of both the parties on a piece of paper don't make it a binding contract in the eyes of law. To protect your right, take a step in the right direction, get a rental agreement registered today.

How Legal Junction Can Help You?

If you are planning to get a rental agreement registered then doing it with a professional will ensure that everything is done legally and hassle-free. You can do it yourself but for that you may have to look for legal documents online and it may be confusing. Legal Junction is one-stop to all your rental agreement needs as we provide smooth and seamless experience to get legal documents prepared.

We offer all kinds of legal service whether it is about getting a rental agreement registered under the government body or something else.