Tamil Nadu Regulations of Rights and Responsibilities of
Tamil Nadu Regulations of Rights and Responsibilities of Landlords and Tenants Act, 2017 16. 09. 2020 1
Genesis of the Tamil Nadu Rights and Responsibilities of the Landlords and Tenants Act, 2017 Problems of the Tamil Nadu Building (Lease and Rent Control) Act, 1960 • Fixation of standard rent without considering the present market value. • No remedy is provided, if the tenants do not vacate the rent premises even after termination of the tenancy period. • Long litigation proceedings relating to recovery of rental premises by the landlord or proceedings related to eviction of tenants. • Restrict the growth of rental housing segment and discourage the landlords from renting out their premises. 2
Tamil Nadu Rights and Responsibilities of the Landlords and Tenants Act, 2017 • Replaced the Tamil Nadu Building (Lease and Rent Control) Act, 1960. • Provides for compulsory registration of all rental agreements within 90 days of execution, irrespective of the term and value of the currency. • For registration of tenancy agreements a web portal (www. tenancy. tn. gov. in) has been introduced. No fee for registration. All tenancies shall be effected by a way of an agreement in writing. • Regulate rent as per the terms and conditions of the agreements entered into between the owner of the premises and tenant. • Balance the rights and responsibilities of the landlord and tenant. • Provides fast adjudication process for resolution of disputes. 3
Comparison of TN Building (Lease and Rent Control) Act, 1960 and TNRRLT Act, 2017 Particulars Fixation of Rent Increase in rent Overstay of tenant Tamil Nadu Rights and Tamil Nadu Building (Lease and Responsibilities of the Landlords and Rent Control) Act, 1960 Tenants Act, 2017 The rent amount is agreed between the Rent fixed based on the value of landlord and the tenant as per the terms and cost of construction when built. of the tenancy agreement. Revision of rent between the landlord and It is unilateral by the landlord with the tenant shall be as per the terms set out approval of the Controller. in the Tenancy Agreement or on a prior 3 months notice to the tenant. No deterrent provision, therefore landlords fear to give their houses on It provides for compensation. i. e two times rent, which in turn reduces the supply the rent to the landlord of rental houses in the market. Rent Authority, Rent Court, Rent Tribunal Adjudicatory Controller or Civil courts Authority Specific adjudicatory bodies introduced for 4
Tamil Nadu Rights and Responsibilities of the Landlords and Tenants Act, 2017 Protection of Landlord • Subletting of rented premises cannot be effected without prior consent of landlord in writing. • Landlord is allowed to make deduction from security deposit amount for any liability of the tenant. • Landlord is allowed to deduct the amount from the security deposit, in case the tenant refuses to carry out scheduled or agreed repairs in the premises. • Landlord can evict the tenant based on the orders of the Rent Court on repossession of premises. • Landlord is allowed to fix or revise the rent payable by the tenant, provided the same should be agreed by the tenant in the tenancy agreement. 5
Tamil Nadu Rights and Responsibilities of the Landlords and Tenants Act, 2017 Protection of Tenant • In the event of death of the tenant, his/her successors will have the same rights and obligations as agreed in tenancy agreement for the remaining period of the tenancy. • Rent cannot be increased during the tenancy period, unless the amount of increase or method of increase is expressly set out in the Tenancy Agreement. • Tenant is entitled to get refund of the security deposit amount within one month of vacating the premises after deduction of amount of liability, if any. • Tenant is entitled to get a written acknowledgement receipt from the landlord or his property manager. • Where the landlord refuses to accept the rent, tenant may deposit it with the Rent Authority. • The upper limit of the security deposit should not be in excess of three times the monthly rent. 6
Tamil Nadu Rights and Responsibilities of the Landlords and Tenants Act, 2017 Protection of Tenant • Tenant is allowed to deduct the amount from the periodic rent, in case the landlord refuses to carry out the scheduled or agreed repairs in the premises. • Where the premises becomes uninhabitable and landlord refuses for repairs, then the tenant has the right to vacate the premises after giving 15 days notice in writing to the landlord or by approaching the Rent Authority. • Tenant can file an application to the Rent Authority against the landlord in case of cut-off or withhold of any essential supply or service in the premises by the landlord. • Tenant may give up possession of the premises on giving a notice as prescribed under the tenancy agreement, and in the absence of any such stipulation relating to such notice, the tenant shall give notice to the landlord of at least one month before giving up the possession of the premises. 7
Tamil Nadu Rights and Responsibilities of the Landlords and Tenants Act, 2017 Rent Authority • Appointed by the District Collectors • Register the tenancy agreement and provide Tenancy Registration number to the parties within 30 days of submission of application. Upload details of tenancy agreement in the web portal. • Fix or revise the rent on an application by the landowner or tenant. • Allow the tenant, if requested, to vacate the premises if it becomes uninhabitable in absence of repairs by the landlord. • Investigate the case and pass an order in case of deposit of rent by the tenant with the rent authority, if the landlord does not accept the rent. • Conduct an inquiry and allow compensation or levy penalty in case of an application made to it by the landlord or tenant if any person cuts-off or withholds any essential supply or service in the premises occupied by the tenant or the landlord. 8
Tamil Nadu Rights and Responsibilities of the Landlords and Tenants Act, 2017 Rent Court • Hear and decide on the appeal against the order of the Rent Authority. • All applications under clauses (a), (b), (c), (e), (f) and (h) of sub-section (2) of section 21, shall be decided within 90 days of filing of application to the Rent Court. • All applications under clauses (d) and (g) of sub-section (2) of section 21, shall be decided within 30 days of filing of application to the Rent Court. • Reliefs that can be given by the Rent Court; • Delivery of possession of the premises to the person in whose favour the decision has been made. • Attachment and sale of the movable or immovable property of the opposite party. • Attachment of any one or more bank accounts of the opposite party and satisfaction of the amount of order to be paid from such account. • Appointing any advocate or any other competent person including officers of the Rent Court or local administration or local body for the execution of the order. 9
Tamil Nadu Rights and Responsibilities of the Landlords and Tenants Act, 2017 Rent Tribunal • The appeal from the orders of the Rent Court lies to the Rent Tribunal. • The Rent Tribunal, upon filing an appeal, fix a hearing not later than thirty days from the date of service of notice of appeal on the respondent and the appeal shall be disposed of within a period of 120 days from the date of service of notice of appeal on the respondent. 10
Tamil Nadu Rights and Responsibilities of the Landlords and Tenants Act, 2017 and Rental Housing Market • The TNRRLTA, 2017 provides for market oriented approach by leaving the fixation of rent amount on parties, who may fix or revise it considering the current market value of the premises and thereby increasing the possibilities of high rate of return to the investors in the rental housing market. • To remove the fear of the landlords losing possession of the premises, TNRRLTA, 2017 gave remedy in the form of compensation to the landlord. 11
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