An Explainer: Tenant
A tenant is a person, who occupies the property of another person by signing a lease or rental agreement.
PropGuide Explains Tenancy
By signing a rental or lease agreement, tenants get certain rights over the property, as they pay a certain amount of money as annual or monthly rent. The legal agreement the tenant signs is called a rental agreement or a lease.
If a property is under lease or rented out to a tenant, the sale of such a property should be subject to the terms of the rental agreement. The new owner would be expected to honor these terms. In cities such as Mumbai, owners are allowed to sell the property, while tenants can sell the right to occupy the property, if the property is under rent control laws.
In some countries, tenants cease to have rights over the property when they stop making the monthly of annual payment. The Housing and Urban Poverty Alleviation Ministry's draft of the Model Tenancy Bill, 2015, was written to ensure that the law is not biased in favor of tenants. According to the draft Bill, landlords will be able to evict a tenant on one month's notice, if he fail to pay the rent or misuses the property.
Check out PropGuide's comprehensive guide to real estate terms here.
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