Punjab is undoubtedly progressing with so many exciting opportunities. It is one of the outstanding states in India, contributing over 3.17 lakh crores in terms of Gross State Domestic Product (GSDP). There’s an IT boom happening in Mohali, the textile industry in Ludhiana is better known as the “Manchester of India” and Batala was previously called the “Iron Bird of Asia” as it was well known for pig iron castings. Apart from this, there are so many agro-based industrial and related machinery units, chemical units, power generating industries etc. and all working in tandem with each other to put Punjab on the global map.
If you have recently moved to any of the happening cities of Punjab, then you must be looking for a decent place to stay. What better way other than having a legal contract specifying all of the terms and conditions of a rental agreement between a landlord and a tenant for renting out or leasing a place of your choice. Generally, it’s always better to know what all clauses go into a rental agreement.
This procedure has to be followed to create rental agreement in Chandigarh, Amritsar, Ludhiana, Mohali, Bathinda, Batala and other places of Punjab.
The Punjab Rent Act, 1995 and The Punjab Rent (Amendment) Act, 2013 are the two primary governing laws and their objective is:
To provide for the regulation of rents, repairs and maintenance and eviction relating to premises and matters connected therewith in the State of Punjab.
The landlord and the tenant should mutually discuss clauses agreeable by both. Once the satisfaction levels are reached, the same can be drafted by a lawyer and printed on Stamp paper of valid denomination. You can also quickly draft your rental agreement from our dedicated rental agreement forms for various states by selecting your state from the drop-down menu.
Here are some of the most important points to ponder over while drafting a rental agreement in Punjab:
Premises Exempted From The Operation Of The Punjab Rent Act, 1995
For Non-Residential Premises
Non-Residential Premises shall be allowed to be rented through Contract renting. Such premises shall be governed by the conditions of the contract, and lawsuit or prosecution under any other law or circumstances shall not be permissible.
The rent payable for the premises is to be decided by the landlord and the tenant, provided that the agreed rent is going to be increased by five percent for the last monthly rent charged over a period of two years and that the third year shall be increased by the increase in Consumer Price Index over the corresponding three years.
Revision Of Rent
With or without the approval of the tenant, the landlord has the right to revise the rent if he has incurred expenditure for any improvement or structural alteration done to the premises. The landlord can increase the rent to a maximum of ten percent of the rent of the premises per year in such cases.
Right To Recover
The right to recover a property immediately lies with the following type of landlords:
Giving more teeth to landlords whose property has been illegally occupied, removing such tenants in question is a breeze now.
From January 2015, the Punjab government has introduced the feature of e-Stamping. Citizens can now quickly access the services without any hassles of middlemen or excess amount of Stamp paper being purchased for non-availability of Stamp paper of required denomination.
However, this feature remains largely untapped by the population and they still get their works done the traditional way.
Here is the breakup of applicable Stamp duties in the state of Punjab:
|Sale Deed/Gift Deed||6%|
|Transfer of Lease Right Deed||3%|
|Exchange Deed||3% (of higher value of property)|
|Lease Deed of term 1-5 years
Lease Deed of term 1-10 years
Lease Deed of term 1-15 years
Lease Deed of term 1-20 years
Lease Deed above the term of 20 years
On Advance amount, if any
|Mortgage Deed Without Possession
Mortgage Deed With Possession
Registering a rental agreement at the Sub-Registrar’s office gives certain advantages-
There are so many additional clauses which you need to pay attention to, be it Notice Period, Lock-in period, Pets, Repair and Maintenance and so forth. LegalDesk.com jumps to your aid, here you can create custom rental agreements and all you have to do is follow these simple steps-
By accessing the website www.legaldesk.com, you acknowledge that you are seeking information about Legaldesk of your own accord and that there has been no form of solicitation, advertisement, or inducement by Legaldesk or its employees or members. The content on this website is for informational purposes only and should not be construed as soliciting or advertisement. No material or information provided on this website should be considered legal advice. LegalDesk.com does not provide any legal advice, consultation, accounting or auditing services, and is not a law firm, chartered accountancy, or company secretary firm. The services provided by LegalDesk.com cannot be construed as a substitute or alternative for legal advice. The website provides legal articles, news, and drafts for informational and educational purposes only. However, due to changing laws and amendments in the law, we cannot guarantee the accuracy or correctness of the content provided therein. Please be aware that due to the differences in laws across jurisdictions, we do not assure the accuracy and applicability of any documents or templates or other services in other jurisdictions. Please consult your lawyer or chartered accountant for the same. The use of this website does not create an attorney-client relationship between LegalDesk.com, its employees, and any customer.