June 12, 2021

MODEL TENANCY ACT, 2021

This act is a policy guideline for states thus Cabinet approval is not required. 

It’s states to decide about implementing this act.

States will be required to set up Rent Court & Rent Tribunals for speedy dispute resolutions.

Under this act 

• It will be mandatory for landlord and Tenant to execute tenancy agreement, 
• Tenancy agreement shall define rights and duties of both the parties, alongwith conditions for eviction of tenant. 
• Tenant has to pay the rent to the landlord

Within 2 months the state rent authority will be informed about this tenancy agreement and the said authority will issue a unique identification number.

In case of any dispute the authority will check facts as per tenancy agreement submitted against the said Unique identification number.

All disputes to be settled by the Rent control authority within 60 days of time frame.

The new act will be applicable for future rental transaction and shall not affect ongoing tenancies.

This act will certainly bring confidence amongst landlords and they will be fear free to rent out their properties instead of keeping vacant.