Theme: Property

What is Police Verification with respect to renting an accommodation?

Police Verification happens when the police verifies your identity and makes sure that you do not have any criminal record. While renting a house, it is the duty of the landlord to do police verification under the law and make you fill a “police verification form”, otherwise he will be punished. Sometimes even brokers help landlords to do the police verification but you do not have to do it yourself or pay any money for the form.

Is it compulsory to get the lease deed registered?

Yes, if your lease deed is for 12 months or more, then it is compulsory to get it registered. Otherwise, if it is less than 12 months, even though compulsory registration is not required under the law, it is better to get it registered in case you need to prove your address for any reason such as passport verification, Aadhar verification etc.

Why is it important to get rent receipts from the landlord?

It is always a good practice to get rent receipts especially if you are paying rent in cash. Taking rent receipts can have advantages such as claiming tax exemption while filing your return (if you are eligible), using it as evidence if a dispute arises from the rent agreement, etc.

What will happen if I do not give my landlord notice before leaving the rented house?

The notice period is given in your agreement. If you do not provide the required amount of notice before leaving the house, the landlord/licensor can deduct an amount from the security deposit, which will be equivalent to the notice period. For example, if your notice period was one month and you informed the landlord that you would be leaving in one week, he can deduct three weeks worth of rent from your security deposit.

What is the purpose of having receipts and copies of all the renting documents?

After you have signed your rent agreement, try to ask for the following receipts:

  • Rent Receipts
  • Security Deposit
  • Brokerage

These receipts will be helpful to show the record of money exchanged between you and the landlord/broker and for tax filing and House Rent Allowance (HRA) reimbursement purposes.

It is important to have copies of the following:

  • Rent/Lease/Leave and License agreement.
  • Police Verification form
  • Bill for utilities such as electricity, water etc.

Having copies allows you to use them as proof if you had to go to court, or as residence proof, proof of payment of expenses with the landlord etc.

Can the landlord increase my rent?

Your landlord can increase your rent at the end of your lease, but not in between. However, if it is a month-by-month lease, the landlord can give you a notice at any point and increase the rent from the following month.

What to do if tenants evicted without giving rent

If you are the landlord and the tenants vacated the house without paying rent, you can file a complaint to the police against your tenant. For this, you will have to go to the police station and file an FIR. You should make sure you give all the information you know about the incident and trouble you have faced with your tenant.

If you are a tenant without a lease agreement and you feel that the landlord is unfairly evicting you for non-payment of rent, please contact a lawyer for further help.

Tenant refusing to vacant house even giving notice

Even after giving notice, if the tenant refuses to vacate the property, this is a breach of contract because the tenant is violating the rent agreement. We would recommend that you contact a lawyer who can assist you based on your specific rent agreement. 

 

If a police officer is refusing to take action on your complaint, then you can: 

  • Write down the complaint and send it to the Superintendent of Police. If the Superintendent feels there is merit in the case, they can appoint a police officer to start an investigation.
  • Take the help of a lawyer while going to the police station. Lawyers can advocate on behalf of a person and reduce the possibility of harassment from police officers.
  • Approach the District/Judicial Magistrate directly to file a ‘private complaint’. Further, if a Magistrate thinks proper investigation is not being done by the officer-in-charge of a police station, the Magistrate can certainly direct the officer to make a proper investigation and can also monitor the investigation. So, you can apply to the concerned Magistrate for monitoring the police investigation, and the Magistrate can then issue appropriate directions for speedy completion of the investigation.

You can also file a complaint against the Investigating Officer for deliberately disobeying any law which regulates the manner of conducting an investigation. Under Section 166A of the Indian Penal Code, 1860, the officer can be punished with imprisonment for six months to two years, along with a fine.

What are the different kinds of disputes with respect to land and immoveable property?

Since land is considered to be one of the most important assets, the range of land-related disputes is huge. However, in this explainer, we will focus on the more common types of disputes, which include:

  • Right of Inheritance Disputes
  • Partition Disputes
  • Land Measurement Disputes
  • Land Encroachment and Boundary Disputes
  • Right of Way Disputes
  • Land Ownership Disputes

What are the laws being discussed?

This explainer deals with the purchase and sale of immovable property in India and various modes of acquisition of property. The same is governed by the Transfer of Property Act, 1882 (“TP Act”); the Foreign Exchange Management Act,1999 (“FEMA”) and FDI Master Circular issued by the Reserve Bank of India on the subject matter. The explainer also aims to discuss foreclosed properties (property, which was kept as collateral for a home loan or mortgage but acquired by the money lender due to non-payment of three or more Equated Monthly Installments (EMIs)), the purchase of which is governed by the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (“SARFAESI Act”).

Searching for a House

Contact a Broker

When you decide to search for a house or a flat, you may need to contact a broker for the area in which you want to stay in. Brokers are usually paid only after you finalize a house and you sign the contract.

Inspect

Depending on the kind of house (furnished/unfurnished) that you want, you should physically inspect the house to see if all your requirements are fulfilled.

Some basic requirements of a house such as permanent fixtures of water supply, electrical fittings like bulbs, fan etc. should ideally be there in any kind of house you take. Try and negotiate with the landlord/licensor regarding any requirements that you have.

Token Money

If you want some time to think about whether you want to take the house, you can block it by paying token money to the landlord. Paying token money is optional and its purpose is to make sure that the landlord does not show the flat to any other possible tenants/licensee. If you have paid token money, ask for a receipt for the same.

Token money payments are a practice that is not regulated by law.

Be careful when you give the money since taking action against a landlord to get your token money back may be difficult.

What are inheritance rights?

When it comes to immovable property, inheritance refers to the transfer of a property’s ownership after the death of an individual. The ideal way to ensure smooth transfer of property ownership following someone’s death is through a will(( To know more about wills, read our explainer – https://nyaaya.redstart.dev/topic/will/)).

However, if there is no will, i.e., an intestacy, law of inheritance applies to decide distribution of the property. In India, personal laws, customary laws and legislative laws govern the law of inheritance of property e . The broad laws are the Hindu Succession Act 1956 and Islamic personal laws.

Under the Hindu law of inheritance, a person/owner can deal with their self-acquired property as they like, but there are restrictions about transfer of ancestral property. The law gives certain family members a birthright to ancestral properties. Brothers and sisters are entitled to equal shares in the property of their mother or father under the Hindu law of inheritance. Here, the terms ‘son’ and ‘daughter’ include adopted sons and daughters, but not stepchildren.

If the survivors have a dispute over immovable property, and the owner of the property does not have a will, they can file a suit before court.

In the case of Muslim law of inheritance, the personal laws that apply depend on which sub-sect one belongs to, i.e., Sunni or Shia. The laws are not codified, which means that there is no act setting them down. For Sunnis following Hanafi Law, personal law restricts legacies to a maximum of one-third of the estate remaining after taking care of funeral expenses, outstanding wages of domestic servants and debts.

What are the different types of immovable property?

Under Indian laws, immovable property includes land, buildings, hereditary allowances, rights to ways, lights, ferries, fisheries or any other benefit to arise out of land, and things attached to the earth, or permanently fastened to anything which is attached to the earth, but not standing timber, growing crops nor grass.(( Section 2 (6) of the Registration Act, 1908)) Due to the fact that land is a state subject under Schedule VII of the Indian constitution, the laws governing immovable property vary from state to state.

Land and Property belonging to SC/ST

It is illegal to take over any land that is owned or controlled by, or allotted to any SC/ST member as well as forcing an SC/ST member to leave her home unless it is done legally. 

The takeover of the property is considered illegal if it is done

  • without the agreement of the victim, or
  • by threatening her or someone connected to her, or
  • by making false records.

It is also a crime to similarly illegally deprive an SC/ST member of his property or to prevent him from exercising his rights over any land. This includes:

  • Blocking an SC/ST member from accessing any forest rights under the Forest Rights Act.
  • Blocking rights to any water source or irrigation source.
  • Destroying or taking away crops.

You can face imprisonment of a term of 6 months to 7 years for using fire or bombs to damage homes, religious places and/or property belonging to SC/ST members. You can report such crimes.

Steps for Negotiation with Landlord

Steps to Take for Negotiation with Landlord

Ask for Identity Proof

You can ask the landlord/licensor for identity proof so that you can confirm that the landlord is the owner of the house or has the permission of the owner to rent the property. The purpose of asking for identity proof is to check whether the person is who they claim to be. Some of the most common identity cards used are Aadhaar card, Driving License etc. The ID card must have the picture as well as the permanent address.

Negotiate Rent and Security Deposit

Negotiate the rent and security amount with him and try to ask for the receipts for both. In some cases, the brokers can be very helpful while trying to negotiate the rent, so you can also request him to accompany you during the rent negotiations.

Negotiate Requirements in the House

While inspecting the house if you have come across any changes or additions to be made, you should tell your landlord before signing the contract. It is helpful to do it before as you will know whether the landlord is open to negotiations for the requirements you want and to assess whether you are getting your house for the best price. Make a list of repairs and installations so that your landlord can look into them.

What are the advantages of having a last will and testament and how can I make one?

A will is a written document a person makes to describe how their assets and wealth are to be distributed among their descendants. The making and execution of wills is governed by the Indian Succession Act of 1925, which applies to all religions except Islam.

Drafting a last will and testament ensures that your property is safely and securely distributed amongst your beneficiaries, as per your wishes. This would avoid intestacy and minimize the chances of a dispute over right of inheritance and avoid long-drawn court processes. You need to name an executor (who will carry out all the proceedings of the will) and a legal guardian for your children if they are minors.

To know more, do read the Nyaaya explainer on Wills.

Why is registration of an immovable property so important?

The purpose of registering transfer of immovable property is to record the signing of the document. The ownership and transfer become legal only after registration, i.e. the ownership of the property is rightfully transferred only upon registration before the sub-registrar. Another significant benefit of paying registration fees and stamp duty is that the same are eligible for tax exemption under Section 80C of the Income Tax Act, 1961.