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New Tenancy Act in Tamilnadu has always reflected the tug-of-war between the landlord and tenants. The laws have also been updated periodically to help the parties peacefully coexist. The recent changes in the laws were made in an attempt to balance the rights and duties of the landlord and tenant.
Also, a legal enactment that would provide quick remedies was the need of the hour. Therefore, the Tamil Nadu Regulations of Rights and Responsibilities of Landlords and Tenants (TNRRRLT) Act 2017 was formulated.
The act launched an exclusive portal o educate the tenants and landlords about their rights and responsibilities, and it also houses various other information pertaining to housing and urban affairs. The act has now replaced the erstwhile legislation, The Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, also known as the Rent Control Act.
The main aim of the act was to make it possible for the general public to afford a house and took every step to ensure better access to housing opportunities while alleviating fears of the house owners in granting tenancy rights.
The act applies to all residential and commercial tenancies within Tamil Nadu. However, it does not apply to the following entities:
The TNRRRLT Act was implemented in February 2019 and its most notable aspect is its retrospective effect, which applies to all tenancy agreements signed before the act came into force. According to the act, all rental agreements must be registered with the Rent Authority, irrespective of the terms involved, the duration of the agreement, or the value of the tenancy, in Tamil Nadu.
Furthermore, in the case of tenancies that were commenced before this act came into force, after the expiry of 12 months from the act coming into force, the landlord can notify the tenant about the revision in rent 2 months prior to the expiry of the 12 months. Also, once the tenant has received such notice 3 months before the revised rent becomes due, the tenant shall be deemed to have accepted the revised rental charges if the tenant fails to vacate the premises.
The act mandates the landowner or the property owner to give signed receipts for the rent received from the tenant in person. The bank acknowledgment is proof that the rental amount was transferred online.
A tenant cannot sublet the rental space without prior written consent from the landlord. It should also be kept in mind that the subletting rent should not be higher than the principal rent. As per the principles of the new act, subletting is considered a separate tenancy, and it is required to be registered separately with the Rent Authority.
While the old Rent Control Act mandated registration of tenancy agreements exceeding 11 months or over ₹50,000 in value, the new law mandates all tenancy agreements to be registered with the Rent Authority, irrespective of the term and value of the tenancy. The act brings within its surveillance all types of tenancies, including commercial and residential tenancies.
The landlord, tenant, or property manager can make the application under the act.
The act mandates that all tenancies be facilitated through an agreement in writing. Even if there were oral agreements effectuated before the commencement of the act, the parties should reduce the terms of the tenancy in writing within 90 days from the date of notification of the act.
After that, the agreement must be registered with the Rent Authority within 90 days from the date of execution. However, the agreement registered under the Registration Act of 1908 has to be carried out separately. Failing to register the agreement would minimize the chances of the tenant or the landlord initiating a suit in the tribunal in case of any discrepancies, as the registration of the agreement is the most obvious evidence in such cases.
Suppose the tenancy period ends, and the parties have either failed to renew the agreement or the tenant has failed to vacate the premises. In that case, it shall be treated as if the agreement was renewed every month on the same terms of conditions as mentioned in the expired agreement for 6 months.
The tenant and the landlord must carry out their respective repairs on the rental property as agreed in the rental agreement. If the landlord fails to carry out the repairs agreed upon earlier, the tenant can carry them out and deduct the amount from the rent to be given to the landowner. If the tenant defaults, the landlord can carry out the repairs. They can recover the amount by deducting the same from the security deposit that has to be returned to the tenant while vacating the premises.
The act directs the landlord to issue 1 original, signed, and registered agreement to the tenant within 15 days of registering the agreement with the Rent Authority, authorized by the act.
The act mentions that the landlord can evict tenants who default on paying the rent for 2 or more months. The rent can be doubled if the tenant fails to vacate the property after the expiry of the rental agreement. Delay in payment of rent will attract an interest of 8% in addition to the rental due payable by the tenant.
All the agreements about the Tenancy Act in Tamilnadu are required to be stamped under the Stamp Act, 1899.
Registration of the rental agreement under the (TNRRRLT) Act 2017 does not dismiss the registration requirement under the Indian Registration Act, 1908. The parties still have to register the agreements as per the Indian Registration Act, 1908, in addition to registering the agreement with the Rent Authority under the new act.
Under the rental agreement, the ‘Aggregate Rent Payable’ is the total rent along with the dues payable, like fine, premium, advance, etc.
The act brings within its ambit all kinds of tenancy and lease agreement. Thus, it includes ‘license’ or ‘leave & license’, ‘Property Management Agreement’, and all other kinds of agreements if it should deal with any right in the immovable property. Such agreements must get registered under the act. Therefore, the terms involved in the agreement would decide if the contract would fall within this act and not the title of the agreement itself.
The rules framed in this regard prescribe that any renewal is treated as a fresh tenancy requiring registration. Unlike the old law, the registration process has been made online, and there is no fee for the registration of the tenancy agreement. However, the portal may levy a nominal service charge for registration.
The right to have a peaceful tenancy should be absolute for the tenants. In a broader perspective, this can be seen as an extension of the right to life guaranteed by the constitution of India. The new act in place delineates the rights and responsibilities of both the tenants and landowners, unlike the old law, which was vague and silent. The main intention of the act: https://www.india.gov.in/my-government/acts is to provide affordable houses to all while promoting a peaceful and harmonious livelihood.
Tamil Nadu enacted the Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017. This law aims to regulate tenancy agreements, providing guidelines for rent increases, disputes, and eviction procedures in the state.
Tenants can be evicted in Tamil Nadu for various reasons, including non-payment of rent, lease violations, owner's genuine need for the property, illegal use of property, or significant damage caused by the tenant.
There wasn't a uniform ‘new tenant rule’ across India. Tenancy laws vary by state. However, states have been working on standardising rental laws to balance landlord-tenant relations and address issues related to eviction, rent, and dispute resolution.
After a prolonged tenancy, tenants may gain certain rights, such as protection from arbitrary eviction and the right to fair rental increases. However, these rights can differ based on state laws, agreements, and circumstances surrounding the tenancy.
In some states, like Maharashtra, the law includes provisions like adverse possession where a tenant occupying a property for a specific period without interruption and meeting certain conditions might claim ownership rights after 12 years.
Certain states in India have adverse possession laws that allow tenants or occupants to claim ownership after ten years of continuous, uninterrupted, and exclusive possession of a property, fulfilling specific legal conditions and requirements outlined by the law.
