New Tenancy Act in Tamil Nadu:

Last week, Chief Minister of Tamil Nadu has begun an exclusive portal www.tenancy.tn.gov.in under a new act called The Tamil Nadu Regulations of Rights and Responsibilities of Landlords and Tenants Act 2017 which is meant to balance the rights of the tenants and owners. It also aimed at replacing the old Tamil Nadu Buildings (Lease and Rent Control) Act. 1960, also known as the Rent Control Act.

As per the terms of this law, all tenancy agreements should be written and shall be compulsorily registered with the rent authority.

In 2017, the state government had submitted the bill in the assembly to execute the tenancy act that will cover all the metropolitan areas but it was passed a year later.

Who will be the rent authority?
In this portal, people can create a tenancy registration number under the tenancy act utilizing which they can register their agreements with the relevant rent authority. Rent authorities would be appointed in every district, supervised by a deputy collector rank officer to settle the disputes between tenants and owners.

Will they establish Rent courts and tribunals under this act?
Yes, Rent court and tribunals will also be established as part of the new act in each district.

Specifications and highlights of TNRRRLT Act, 2017
Immediate Execution of the Act: The TNRRRLT Act came into effect on the 22nd February 2019, and the act also governs and mandates those tenancy agreements executed prior to the enactment of this law. Moreover, even people who have already rented out places will have to register their agreements with the concerned rent authority within the next 90 days.

Compulsory registration: Although the old Rent Control Act directed registration of the tenancy agreements going beyond 11 months or over Rs. 50,000 in value, the new act directs all tenancy agreements to be registered with the Rent Authority, regardless the term and value of the tenancy. It covers both commercial and residential occupancies including the use of educational premises but does not include the premises registered under the Factories Act, 1948.

Who can fill the application?
The application may be filed by both landlord and tenant.

Why written agreement and registration Require?
As per Section 4 of the Act, all occupancies shall be made by way of an agreement. Also in respect of verbal occupancies formed before the start of the Act, the individuals shall modify the terms of the tenancy in writing within 90 days from the date of notification of the Act.

Requirements under the Stamp Act: It is also mentioned in the new act that all tenancy agreements are to be stamped as per Article 35 of the Indian Stamp Act, 1899.

Independent Registration: Registration is independent under this new Act of registration needed under the Indian Registration Act. Both parties are still responsible to register the agreements as per the Indian Registration Act excluding registering the agreement with the Rent Authority under the new act.

Would this act cover leave, license, property management agreements?
The act is aimed to be a complete code of tenancy. License agreements being of a similar nature are also covered. As the registration under this act is mandated for tenancy/lease agreements. Therefore, despite the agreement is titled or termed ‘license’ or ‘leave & license’, ‘Property Management Agreement’, if the terms or titled of the agreement form any right in the immovable property, then such agreement has to be registered under this Act. The ‘terms’ of the contract will define the nature of the agreement and not the ‘title’ given to such agreement.

Is registration required on renewal?
The rules drafted in this matter direct that any renewal is treated as a fresh tenancy demanding registration again. Contrary to the old law, the process of registration has been made online and there is no fee for registration of the tenancy agreement, though, nominal service charges be placed by the portal for registration.