Govt to soon come up with a Model Tenancy law to uplift the Real Estate Sector Latest News

Durga Shanker Mishra, Housing and Urban Affairs Secretary mentioned that the government would soon come up with the Model Tenancy Act while addressing a webinar organized by the Real estate regulatory body the draft to which was constructed in July 2019. The Act intends to bring harmony between the landlords and the tenants by eliminating certain obligations. States like Maharashtra and Karnataka have reduced stamp duty on registration of properties to boost sales.

Model Tenancy law is ready and will be out in no time, it has been translated into various languages and has far-reaching effects, said Mishra. 31st October was the last date for feedback for the proposed Tenancy Law. Each state was asked to compile and send it.
Mishra also announced that as per the 2011 census people fear to give their homes on rent. The model tenancy law will eliminate anomalies and accentuate the real estate sector. The Centre will send the Model Tenancy Law, after approval from the Union Cabinet, to states for its adoption. The draft of model tenancy law implies that landowners will have to give a notice in writing three months before revising rent. It also advocated appointing a district collector as rent authority and heavy penalty on tenants for overstaying.
The Model Tenancy Act aims to bridge the trust deficit between tenants and landlords by clearly delineating the obligations of tenants and landlords. To ensure speedy redressal of disputes, it proposes to establish Rent Court and Rent Tribunal to hear appeals for matters connected to rental housing. Ultimately, the creation of rental housing stock will help students, working professionals, and the migrant population, at large, to find accommodation," said Anuj Puri, Chairman - ANAROCK Property Consultants.
“Provisions announced in the Model Tenancy Act would make renting a viable option for tenants as well as property owners if states show the willingness to adopt it in letter and spirit," said Dhruv Agarwala, Group CEO, Housing.com, commenting on the draft law, Ankit Kansal, co-founder and managing director, 360 Realtors said, "We expect rental housing to pick up the pace once the Model Tenancy Law comes into effect. The government has to ensure that the states should not face hurdles to implement it as was witnessed during the implementation of RERA. As per the reports, the law has taken care of every aspect related to the tenants and landlords."

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