Ravi searched for a house on rent and found a house for rent and finalized the house, signed the agreement with the owner. However, later Ravi did not like the condition of the house and decided to leave the house and informed the same to the owner. But the owner informed Ravi that he has to give 2 months prior notice or give 2 months rent to leave the house.
Do you know why this happened?
This is because the rent agreement signed by Ravi had a clause called: Lock in Period.
What is Lock in Period?
Locking period is the time within which parties cannot terminate the contract before the end of the lock in period. If the party does so then he/she has to be pay the rent for the remaining lock in period.
Every Rental agreement has a Lock in Period which involves that if the Tenant wishes to terminate the Agreement then he has to serve a notice period of 2 Months or give the Rent of 2 Months. Ravi did not read the Agreement and signed the Agreement that he is accepting the Terms and Conditions and this led him to a situation where has to either serve 2 Months’ notice or pay 2 Months’ rent.
Ravi could have avoided the situation if he had read the Agreement carefully before signing it. Most of the tenants are not aware of the points that should be included while making the Rent Agreement.
List of things that need to be checked while making Rent Agreement:
- Ownership of Owner
- Briefing of Terms and Conditions
- Check previous Bills of House
- Take Receipts
Ownership of House:
Before Signing the Agreement, make sure that the person who is claiming to be the Owner of the Property is the actual Owner or not. Ask for the Ownership Proof from the Person, Verify the Proof and preserve a Photocopy for future Reference.
Briefing of Terms and Conditions:
Discuss the Terms and Conditions before Signing the Rent Agreement with the Owner. Discuss and Modify the terms as suitable.
Terms and conditions which Tenant has to check are:
- Hike of Rent Clause: Check whether there is a clause for hike in Rent in the Agreement and the period after which the Rent will be hiked. Also check the percentage and Date of Hike and decide on the hike mutually with the Owner.
- Repairs and Maintenance: Check the Clause of Repairs and Maintenance that the Repairs will be done by which Party.
- Lock in Period: Check if the Agreement contain the clause of Lock in Period and if yes, then check for the duration of Lock in Period and modify as suitable.
- Duration of Agreement: Check the Duration that what is the duration of the Agreement and when it will get expire and be prepare accordingly.
- Sale of House – Check the clause of Sale of house that if owner decide to sale the House during the agreement then how much time will tenant get to search any other accommodation.
These are the few terms and conditions which needs to be check thoroughly, otherwise it is highly recommended to read and verify each and every clause mentioned in Rent Agreement before Signing and Accepting it.
Check Previous Bills of House:
Check all the previous bills of the house whether they are paid or not. If unpaid ask the owner to clear them. Specifically check bills of Electricity, Water, Gas and House Tax.
Take the Receipt:
If you have paid any Token Money to the Owner, ask them for the receipt and keep it safely.
These are the basic things which Tenant must check before signing an agreement.
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