Lease Laws In India

jack.macferson@gmail.com (JackMacferson) — Fri, 29 Dec 2006 01:09:10 GMT

by JackMacferson
Friday, December 29, 2006

Are you one of those who are searching for a home on rent? Do you feel that property search in India is a difficult task? Do you believe that today India has a host of options when it comes to property investment and it is little difficult to find out the best option? If your answer to all such questions is yes, you should stop worrying now. This is because of the growing number of real estate agents in the country. These agents provide you with all the information that is required to make this decision.

Taking a property on rent use to be an easier task earlier. There were no legal hassles or laws binding this transaction. Simply liking a place and deciding upon its rent was enough to stay at a place. But these days' people prefer to rent an apartment on lease. A lease is nothing but a legal agreement between the landlord and tenant. The lease spells out the tenant's rights, and allows the tenant to use the property for a specified period of time. The lease sets the terms, the rent amount, the length of the tenancy, and all the other rules.

Lease is beneficial to both the landlord and the tenant. If you have a lease, you cannot be evicted without cause during the term of your lease. Also, the rent of the place cannot be raised for the duration of the lease.

If you don't have a lease, then you are a tenant at your landlord's will. This means that you have a month-to-month agreement with the landlord, and he can ask you to vacate the house whenever he wants. A landlord also cannot raise the rent on a tenant at will unless the landlord gives one month's notice. Lease laws in India are valid for both commercial and residential property. These laws have been created to make this transaction genuine and without any future problems.

If you are an investor and looking to invest in the property market, you might better think of investing in commercial property rather than residential. This is because these days the rental return from residential property is only about 4-5 %, whereas for commercial property it has risen to as high as 8%. The boom in the property market over the last few years has resulted in a lot of supply coming into the residential market, especially in the suburbs.

About the Author

Jack is an editor for www.indianpropertysearch.com. Indianpropertysearch.com is a real estate property search engine that provides an interface to find property in India, property laws in India, real estate agents and property dealers in India. You can send our feedback at jack.macferson@gmail.com.

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