"Model Tenancy Act provides model for urban and rural properties and template for residential & commercial properties. Will apply to future transactions and take people from informal to specific contract arrangement between landlord and tenant," Puri added.
The Model Tenancy Act addresses factors like the need to have a formal rent agreement, how much security deposit should be paid, rate of rent increase, and grounds for eviction.
The Centre had proposed a “model tenancy law" in 2019 under which the landowner would give a notice in writing three months before revising rent.
Moreover, security deposit to be paid by the tenant in advance will be a maximum of two months’ rent, as per the Act
According to the MTA Act, a landowner cannot cut power and water supply in case of a dispute with the tenant.
It also stated that a landowner cannot enter the rented premises without 24-hour prior notice to carry out repairs or replacement.
States, which will be free to adopt the law owing to land being state subject, will be required to constitute rent courts and rent tribunal, it stated.
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