Cabinet Model Tenant Law Approved Landlord, Provision of Tenant Interests

- States will have to enforce the law

- Rent Authority will be formed like RERA: Rental agreement has to be given to Rent Authority: In case of dispute, complaint can be lodged with Rent Authority.

- If a party is dissatisfied with the decision of the rent authority, he can go to the rent court or tribunal and there he will get the verdict within maximum 60 days.

- The landlord will not be bothered by the fear that the tenant will take over the house: on the other hand the landlord will not be able to take more than two months rent as security deposit.

New Delhi: The Union Cabinet today approved the Model Lease Act. The draft law will now be sent to the states and union territories. However, the law will have to be enforced by the states. The Union Territory of Chandigarh has already started implementation of the law.

The system currently in place for landlords and tenants in the country has a number of shortcomings. This new law has been introduced to address these shortcomings. The new law takes into account the interests of the landlord as well as the tenant. The purpose of this law is to give an organized form to the rental business.

The law includes a provision to create a rent authority at the district level to regulate the act of giving and taking a house on rent. This authority will act like Rera. The landlord and tenant must submit a rent agreement to this authority.

If there is a dispute between the landlord and the tenant, he must first make a complaint to the rent authority. If a party is unhappy with the decision of the authority, it can go to a rent court or tribunal.

It used to take years for landlord and tenant cases to be disposed of in court, but now, under the new law, a rent court or tribunal will have to dispose of the case within 60 days.

Under the new law, the landlord will not be bothered by the fear that the tenant will take over the house. If the landlord gives notice to the tenant to vacate the house before the agreement is completed, the tenant will have to vacate the house to complete the agreement. If the tenant does not vacate the building, the landlord can double the rent for the next two months and then quadruple it.

The new law also sets limits on security deposits. Currently homeowners charge a deposit at their discretion. However, under the new law, landlords will not be able to collect more than two months' rent in residential areas as a deposit. No more than six months rent can be taken as deposit for non-residential area property.