What Happens If You Don’t Register Rent Agreement

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Rent Agreement comes with many perks for both the parties tenant and landlord. The sole purpose of drafting a rent agreement is to keep the interest of both parties also can be proved as solid proof reflecting the terms and conditions of both parties. It carries the bottom line to register a rent agreement that keeps the address proof and resolve any kind of conflicts if arise. In this article, we try to encompass the possibilities that can happen if you do not register a rent agreement. 

There can be two cases in renting a home without a rent agreement:

  • Living at a property on rent 
  • Renting our property to someone
What Happens If You Don't Register Rent Agreement
What Happens If You Don’t Register Rent Agreement

As a tenant

If a tenant is living on someone else property either in a flat or house or running a business on another’s property without having a rent agreement. In such a case, your owner of the property can terminate you from their property. Even if you carry a payment slip of paid rents as solid evidence of living on the property legally. But this is not something that the court will accept for you, you will be asked to show a rental agreement to prove you are legally living on that property as a tenant.

The landlord can impose the increase of rent in adherence to the Rent Control Act 1948.

Also, you can not apply for tax exemption via HRA without showing the rent agreement.

As a landlord

The landlord may enjoy tons of advantages of not having a rent agreement, but in absence of a rental agreement there also several setbacks too that a landlord might face. 

If any damage is done without a rental agreement or any harm is placed on the property either intentionally or unintentionally, the landlord can not emphasize the tenant to pay for the loss.

In the absence of a Rent Agreementa landlord can not impose any kind of restrictions on the tenant like keeping the pets out of the property. Also, a landlord can force to the extent the duration of staying on the flat or house.

The rental agreement also secures the section for penalty or delay charges, but if parties are not registered in the rental agreement a tenant lost all their rights to ask for the penalty for delay in payment.

Living on rent without a rent agreement. Is it legal?

Yes, it is legal to rent a property or live on rent without drafting a rental agreement.

Though Bangalore has some strict laws and extra benefits related to rental agreements. Hence, register yourself in it, draft an online rent agreement in Bangalore.

Typically, people try to ignore drafting a rental agreement after knowing so many benefits of it. It a safeguard for both the parties and securing their interest. Indian law permits them to have a good relationship with each other without even a rent agreement and allows them to go for a verbal lease. 

Though oral law does not give much space for restrictions, it more provides flexibility more to both parties.