Rights & Liabilities of Landlord

When you have transferred the right to enjoy an immovable property to another person for a specific period of time in consideration of specific value, which is either to be given periodically or on specific dates by the tenant to the landlord, it is called a lease. After a lease agreement, a tenancy comes into existence where the transferor or the lessor is known as the landlord, and the transferee or the lessee becomes the tenant.

Rights and duties of landlords and even tenants are governed by the Transfer of Property Act.

Key Points:

The landlord must be competent to contract,that is of the age of majority and possess a sound mind. A minor cannot grant lease  as per Indian Contract Act. However, the guardian of a minor may grant such lease, without the court’s permission, for a period not exceeding five years or lasting for more than one year after the minor turns major. 

A lessor’s most crucial right is to transfer the possession of the property to the tenant. His authority cannot be questionable. Such ‘authority’ either stems from the ownership of the property, or from having the possession of the property. Since a lease is only the transfer of the possession of a property, thus it is not mandatory that the lessor be the owner of the property. A subsequent lease granted by a lessee is referred to as a sub-lease, or derivative lease.

What to recognize: 

Disclosing Material Fact:

Any latent material fact shall be disclosed by the landlord to the tenant before transferring the possession of the property. Latent defect is the defect which is not apparently visible but the landlord has complete knowledge of the same. Tenants shall clear all the terms of possession regarding the latent defects beforehand only.

Handing over the Possession:

Landlords shall do an agreement with the tenant before transferring the possession of the property and after the agreement is signed it becomes the obligation of the landlord to transfer the possession to the tenant. Tenants can even sue the landlord in the event the landlord fails to provide the possession after the agreement is executed.

Right to quiet enjoyment:

Quiet enjoyment refers to no objection by the landlord. It is the implied duty of the landlord to ensure the tenant is enjoying his peaceful right and the tenant is protected from any kind of disturbance. Hence, if any action is required against the trespasser tenant shall take the action for the same.

Rights:

1. To recover the rent from the lessee
2. Taking back property if agreement is breached
3. Taking back the possession in case of termination
4. Recovering the amount of damages caused to the property
5. Ask for compensation if tenant is not vacating the property

Duties:

1. Disclose material defects in the property
2. Performs all terms & conditions mentioned in the agreement
3. Informing tenants before entering the leased property
4. Refund any advance payment already paid by tenant before entering into the Agreement
5. Seek permission from Lessee before making any modifications in the Leased property.

Amongst all the duties and liabilities, the Landlord is often advised to get his Lease Deed registered, the same asserts the legal authenticity of that particular document and prevents both Parties to escape from respective liabilities.

Lead India helps you draft lease deeds which clearly mentions the respective rights and duties of the landlord and tenants.