There is usually a clause in the agreement that the rent is revised upwards annually. An increase of 5% to 10% is normal, but depends on the price of the dominant market in your city. Most leases are signed for a period of 11 months, which avoids stamp duty and other fees. We all know that the leave and license agreement is covered by what law. Under the Registration Act of 1908, registration of a lease is mandatory if the term of the lease is greater than or equal to 12 months. Can the leave and license agreement last more than 11 months? The duration is the license term. It is usually 11 months, but can also be increased to five years: there is no time limit. There may also be a mention of a lock-in period. For example, the tenant may be punished – and some or all of the deposit is withheld – if he terminates the contract too early (usually six months). Lock-in periods are not applicable in court, but if you sign a contract providing for a lock-in, you are required to comply with them. Some homeowners may deduct a certain amount if you want to move, so find out how much – and under what circumstances – the money can be deducted.
The lessor is also required to return the deposit within a certain number of days. These two points could also be clarified in the agreement. According to the law, the leave and license agreement can be concluded for a maximum period of 5 years. Avoid choosing a duration of 11 months, as there is no logic in choosing this duration if the agreement is to be registered. If the licensee intends to live longer and the licensor has no objection, the term may be extended. A longer duration is beneficial for both parties, as it saves processing costs and future work. The agreement should clearly state what the apartment is to be in. This is important because the owner must then maintain and repair the house if necessary.
The rental agreement should contain a clause relating to the proper maintenance of the property. Tenants are generally expected to take care of minor repairs, so it is important to consider the form of the property before they are taken into possession. Find out if the electrical and hydraulic fittings are in perfect condition by turning on the faucets and turning on the lights. The doctrine of force majeure is reflected in section 56 of the Indian Contract Act of 1872. Previous precedents have referred to Section 56 as a doctrine of frustration. Section 56 provides that an agreement to perform an impossible act is in itself unregious. Consequently, it provides for the cancellation of an act contract that becomes impossible or illegal after the conclusion of the contract due to an event that the promisor has not been able to prevent if the act becomes impossible or illegal. Licensing and licensing agreements have similar elements, but what`s important is the wording….