Difference b/w Transfer of property act and Rent Act
Ramesh
(Querist) 04 December 2009
This query is : Resolved
Hi,
Can anyone please ellaborate on difference between Transfer of property act and Rent Act.
I heard someone saying that as per Indian Law a building on rent (residential or Commercial) if less than 10 years old is covered under Transfer of property act in case of dispute b/w landlord and tenant.
Kindly explain.
Thanks
Raj Kumar Makkad
(Expert) 04 December 2009
The hearing of your is entirely wrong. The Rent act has no relation with the Transfer of Property Act as both are entirely different and deal with different situations. In the given presumption your fear/hearing is wrong.
N RAMESH.
(Expert) 04 December 2009
In transfer of property act there are provision that deals with lease. Prior to the enactment of Rent control act, lease of immovable property was decided by the provisions of T.P.Act.
After the enactment of Rent control act, the dispute between landlord and tenant is decided under the Rent control act. There are certain exceptions for the applicability of Rent control act.
First, the rent control act is applicable only in notified towns.
Secondly, new buildings of up to 5 year old are not comes under the act.
The rent control act is not applicable to religious trust and government properties.
In the above cases, only Suit can be filed under the Transfer of property act and not under the Rent control act.
Theja
(Expert) 04 December 2009
The Transfer of Property Act is to deal with transfer of any kind of proeprty intervivos. It does not deal with any specific kind of transfer except for intervivos.
The Rent Control Act was an attempt by the Government of India to eliminate the exploitation of tenants by landlords. Rent legislation tends to providing payment of fair rent to landlords and protection of tenants against eviction.
Hence, Rental Control Act is specific to the protection of the interests of the tenants and related issues.
However, as Ramesh Sir has pointed there limitations with respect to the applicability of Rent Control Acts of each of the states.
Ramesh
(Querist) 04 December 2009
Thanks a lot for the reply.
Can you kindly provide me reply to 2 more queries :-
1. Is the TPA only to registered property. I have taken flat with possesion letter from my builder , but the same is not yet registered. Please let me know if TPA is applicable for tenant dispute in such case.
2. I got possession letter in 2008. When we say that building is less than 5 years old , how is the 5 year term calculated.
Thanks
H. S. Thukral
(Expert) 05 December 2009
Your problem is simple. The rent control act, which is a state enactment, provides protection to tenants from eviction where it applies. The rest of cases where rent control act is not applicable are simple lease cases governing the relationship of lessor and lessee as terms and covenants of the lease agreement. A lease is a transfer of property under TPA
For example the Delhi Rent Control Act as per section 3 does not apply to a premise which is less than ten year old and or fetches a rent of over Rs 3500 PM. Ten years period is from the date of completion of building in the municipal records and not the occupancy. There is no requirement of registration of property to create a relationship of landlord and tenant. A tenant is even debarred from questioning the title of the landlord once he is paying rent to the landlord.
Ramesh
(Querist) 05 December 2009
Thanks a lot Sir.
Just last question which might look very trivial, but kindly answer to show me right path forward.
For my flat in punjab, i had got signed the rent agreement with my tenants. Now in the case of me asking them to evict will the case be filed under TPA or under Rent Act. The rent is near 6000 and building is just 1 year old.
H. S. Thukral
(Expert) 05 December 2009
You can first of all have to terminate the agreement by giving 15 days notice which is requirement under TPA ( Section 106) If the tenant does not vacate you have to file a civil suit in a civil court for possession, recovery of arrears and damages for staying in the premises unauthorisedly beyond the termination of agreement at a market rate rent. Rent control act is not applicable to you. If the rent agreement was signed by you, it does not matter if you are not absolute owner or property is not registered in your name.
( Please narrate facts in the first instance for an appropriate reply otherwise you will get confused from variety of answers)
Ramesh
(Querist) 05 December 2009
Sure Sir. Thanks a lot again. I will try to be more precise in my questions also in future.
pawan sharma
(Expert) 14 December 2009
I agree with the views of mr Harbhajan Singh on this point,because T P Act is center Act and it enforce on all India beside some part whether Rents Acts are enectment of the State, accoding to need of such aria.
Vineet
(Expert) 14 December 2009
Thanks to Mr Ramesh and Mr Harbhajan Singh for the quality and specific replies.
