Documentation and procedure required for rental agreement with two lessors
I would like to obtain the answers of the following queries: (1) Am I individually allowed to let any flat which is also co-owned by my wife? (2) Whether rent received from the tenant is to be divided between husband & wife, if anyone is legally allowed to let their flat? (3) What documents are needed from the tenant for future security & safety? (4) Receipt of rent by cash or through Bank A/C, whichever is legally supported?
Hi, thank you for writing to us. Here's our response to your queries.
There are three types of co-ownership.
Firstly, "tenants-in-common" where two or more person buys a property when the co-owners does not specifically mention their shares in the property. All the co-owners can use the property entirely and it shall be deemed to have equal shares in the property. Upon the death of one of the co-owner, the interest/profit does not pass on to the left co-owner but to the person whose name shall be mentioned in the will, who is rightful heir of the property.
The other type of co-ownership is "Joint ownership" where property is owned by two or more persons at the same time in equal shares. In this if one co-owner dies, the interest/profit will pass on to the left co-owner. To fall under this criteria, there requires satisfying three essentials at the same time, same deed and with equal shares - unity of time, unity of possession and unity of title.
Another special case is "Tenancy by entirety" where both spouse owns the property equally. In such situation, one cannot sell off the property without the permission of the other.
Under the Transfer of Property Act of Section 44 where it says that the property owned by co-owners can be transferred but it requires the consent of all the co-owners. If there's any special clause which says that the joint co-owner can sell off his/her property to whomsoever.
The rights every co-owners have - right to possession, right to use, and right to dispose of their share of property.
Likely, you will fall under the tenancy by entirety, thus you cannot let out the property without the consent of your spouse. Secondly, both will get equal shares on the interests unless specifically mentioned otherwise.
Before letting out the flat to a tenant make sure to verify information on tenant, some are enlisted -
1. Collect financial records on tenant by collecting monthly payment slips for the past three months. Make sure that the tenant has a salary, double than that of rent.
2. Tenant's bank statements for the past three months, whether he is likely to evade payments.
3. Ask for the tenant's permanent address, make him/her to fill out information such as name, permanent address, rental history, driving license, and also ask him/her to give his/her photograph. You can also go seek information from his/her previous property owner about his/her whereabouts.
4. you can submit these documents to the police authorities, it is mandatory in few cities such as Chennai, it aids to secure localities. It might also help if there's any unpredictable difficulties in relation to eviction of tenants.
5. Can also obtain certificate from the employer of the tenant.
6.You should also specifically mention all the names of the residents willing to reside in the premises of the rental
You can opt for either mode, cash or via bank a/c. But preferably, you can go for bank a/c as this you will have clear logs of payments, as it cannot be misplace.
We hope this response helps you. Thank you
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