Rent / Lease
Reshma K
(Querist) 01 December 2009
This query is : Resolved
Dear Sanjeev, Thanks a lot for your answers. I have a few clarification to understand it better.
1. So in the case of Lease/Rent are there some standard requirements. I mean, is it compulsory that there shoudl be a security deposit to be paid at the begining. If yes, is there is a set amount?
2. Does the payments have to be made monthly. Can it be once in two months etc?
3. In a lease agreement, there is usually a cluase saying that agreement can be terminated by notice by either side? Is there a set period of notice or are the parties free to decide what shoudl be the notice period?
4. Another important question i have is, since lease can be terminated by notice period usaully with a months time, Is it really required to have an agreement that the lease is for 11 months, 1 year or two years. Can we not just say or rather shouldn't it be that the agreement is on monthly basis, since in effect it means the same. Becuase even it is for 11 months or more, the tenanct will have to leave after receiving the notice.
4. Sanjeev, I am still not clear with the difference between price and rent. You seem to be saying that Price is the security deposit. Is that so. Then are you saying deposit is compulsory in every lease agreement?
Manish Singh
(Expert) 01 December 2009
Dear Ms K,
1. there is no compulsion on the parties to have a clause of security deposit. its all about understanding between the parties.
2. payments can be made at intervals for which the parties agree. no compulsion to pay it monthly.
3. the lease or license is made below the period of 1 year so that it is saved from the requirement of registration. you can make a month to month tenancy. even if you dont get into any agreement, it amounts to month to month tenancy. and if a tenant does not leave after the notice period, you can take legal action.
4. under lease/license, the consideration is called rent.
Reshma K
(Querist) 01 December 2009
Thanks a lot, your fourth answer is not clear, I am afraid. What is price, REnt is understand is the periodic payment, what is price
Manish Singh
(Expert) 01 December 2009
even if you term the rent as price, it wont affect the legality of rent. the same shall be taken as rent only. but still you 'll have to see in what context, under the agreement, "price" has been used.
