01/04/2022
WHY IS IT IMPORTANT TO HAVE A VALID RENT AGREEMENT DULY DRAFTED AND REGISTERED BY US?
1. Disputes arising out of relationship of a tenant and landlord cannot be entertained by the Rent Tribunal unless:
a. For the Tenant: he/she deposits a fine equivalent to FIVE PERCENT of the annual value of the rent.
b. For the landlord: he/she deposits a fine equivalent to TEN PERCENT of the annual value of the rent.
2. Non-compliance of the provisions of The Punjab Rented Premises Act, 2009, will hold back the tenant and landlord from multiple benefits provided under the Act, which include, obligations of the landlord towards the tenant and vice versa, regulation of payments, rate per annum for enhancement of rent, description of the rented property, the period of tenancy etc.
PERKS OF HAVING A REGISTERED RENT AGREEMENT:
1. A well established relation, with both the parties having mutually agreed upon the terms and conditions set forth in the agreement.
2. Any dispute arising out of the registered rent agreement can be adjudicated upon by the Rent Tribunal.
3. A valid proof of residence of the Tenant, as it has been registered with the governing authority.
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