Most rentals close on a downloaded template. That works until a deposit is withheld or a tenant will not leave. Here is the law that applies, state by state, and the clauses that prevent most disputes.
The Model Tenancy Act 2021 is a central model law; it applies only where a state enacts it, as Tamil Nadu, Andhra Pradesh, Uttar Pradesh and Assam have. It caps deposits at two months' rent for homes. Elsewhere, state rent laws apply. Leases over one year must be registered, which is why 11-month agreements are common.
RERACertified™ Professional (RCP) covers the RERA Act, agreements, documentation and your state track, with a 100-question final exam. RERACertified sells this course. It is a private certification and does not replace state RERA agent registration.
See RERACertified™ Pro — ₹4,999 →| Question | Short answer |
|---|---|
| What is the MTA? | A central model law (Cabinet approval 2 June 2021) that states adopt. |
| Where is it law? | Tamil Nadu, Andhra Pradesh, Uttar Pradesh, Assam (Lok Sabha, Dec 2023). Later laws reported in J&K and Chandigarh. |
| Deposit cap (MTA) | 2 months' rent residential; 6 months' non-residential. |
| Compulsory registration | Leases over one year; all leave and licence in Maharashtra. |
| Stamp duty | Payable at the state rate, registered or not. |
| Police verification | State and district specific. |
| RERA for rental agents? | Generally outside Section 2(zm), on our reading. |
The Model Tenancy Act (MTA) is a template law from the Ministry of Housing and Urban Affairs. The Union Cabinet approved it on 2 June 2021 and circulated it to all states and UTs on 7 June 2021 Confirmed. Tenancy is a state subject, so a state must pass its own Act on the same lines. The Ministry told the Lok Sabha that states can adopt it prospectively, for new tenancies, in urban and rural areas.
Status: the 60-day target, essential-services rule and Schedule II are confirmed by the Ministry's PIB statement; the rest is from PRS Legislative Research's summary (verify on mohua.gov.in). States can change the figures.
In a Lok Sabha answer on 7 December 2023, the Housing Ministry said: "States of Tamil Nadu, Andhra Pradesh, Uttar Pradesh and Assam have notified their revised Tenancy laws." Confirmed
| State / UT | Law | Status |
|---|---|---|
| Uttar Pradesh | UP Regulation of Urban Premises Tenancy Act, 2021 (in force from 11 Jan 2021) | Confirmed India Code |
| Tamil Nadu | TN Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017 | Confirmed Lok Sabha list |
| Andhra Pradesh | Revised tenancy law | Confirmed Lok Sabha list; Act name: verify on the AP gazette |
| Assam | Assam Tenancy Act, 2021 | Confirmed Lok Sabha list |
| Jammu & Kashmir | J&K Tenancy Act, 2025 | Reported Nov 2025 |
| Chandigarh UT | Assam Tenancy Act, 2021 extended by MHA notification of 6 May 2026 | Reported stayed by the High Court (May 2026); check status |
Treat any state not listed as non-MTA until you see its gazette notification.
| Issue | MTA-based state (e.g. UP) | Non-MTA state (e.g. Punjab, Haryana) |
|---|---|---|
| Governing law | State tenancy Act on MTA lines | Old rent control Act (Haryana: Urban (Control of Rent and Eviction) Act, 1973) plus the Transfer of Property Act |
| Written agreement | Mandatory | Strongly advisable; oral lease up to a year is legally possible with possession |
| Report to authority | Intimation to Rent Authority | None, except Sub-Registrar if registering |
| Deposit | Capped (MTA: 2 months residential; check state Act) | No MTA cap; by negotiation (verify local law) |
| Disputes | Rent Authority, Rent Court, Rent Tribunal | Rent Controller under the state Act; civil courts in some cases |
| Registration over one year | Yes | Yes |
| Stamp duty | State rate | State rate |
Because of two sections that say the same thing. Section 17(1)(d) of the Registration Act, 1908 makes registration compulsory for "leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent". Section 107 of the Transfer of Property Act, 1882 says such a lease "can be made only by a registered instrument", while all other leases may be made by a registered instrument or "by oral agreement accompanied by delivery of possession". Confirmed
An 11-month term stays below that line, avoiding the Sub-Registrar visit and fee. But:
Section 55 of the Maharashtra Rent Control Act, 1999 says any agreement "for leave and licence or letting of any premises" made after the Act began "shall be in writing and shall be registered under the Registration Act, 1908". Confirmed
Stamp duty and registration fee for leave and licence: verify on igrmaharashtra.gov.in before quoting a number.
No single national rule; it is usually required by district or police commissioner orders, which differ by city. State-specific Examples:
Write into the agreement who files it and keep the acknowledgement. Collect only what the form asks for. Our guide to the DPDP Act for real estate agents covers consent and retention.
Generally not for pure rentals, on our reading. Section 2(zm) of the RERA Act defines a real estate agent as a person who negotiates a transfer of a plot, apartment or building in a real estate project "by way of sale", or who introduces prospective buyers and sellers "for negotiation for sale or purchase". Confirmed (definition as quoted by Bihar RERA). Leasing is not in that wording, and Section 9 is about facilitating sales. Our reading
If you also sell in registered projects, you need registration, and a state authority may read this differently. See RERA agent vs broker.
No law fixes rental brokerage in most states, and we publish no "standard" figure. Send a written fee note before the first visit: amount, who pays, when due, and renewal or early-exit terms. Our commission guide has a rental fee checklist.
Tick each before anyone signs.
Aman, an agent, finds a tenant for a semi-furnished 2BHK. To keep the arithmetic simple, assume rent of ₹25,000 a month (an illustration, not a market rate). The owner wants a 3-year commitment and a 6-month deposit.
| Decision | Mohali (Punjab) | Gurugram (Haryana) | If it were Noida (UP) |
|---|---|---|---|
| MTA-based law? | No (not in the Lok Sabha list) | No; 1973 rent Act | Yes, UP Act 2021 |
| 3-year lease | Must be registered | Must be registered | Must be registered; intimate Rent Authority |
| Or 11 months + renewal | No compulsory registration; stamp it | Same | Still written and intimated |
| 6-month deposit (₹1,50,000) | Negotiable | Negotiable | Above a 2-month cap (₹50,000) if UP follows the MTA figure; verify the UP Act |
| Police verification | Saanjh portal (reported) | Har Samay / Gurugram Police (reported) | UP Police (check district) |
A registered 3-year lease gives certainty but costs a Sub-Registrar visit and more stamp duty; 11 months is cheaper but needs fresh stamp paper at each renewal. The owner picks 11 months with a written 5% escalation. In Mohali, Aman suggests a 3-month deposit as a middle path. His fee, who pays and when go in a WhatsApp message both parties confirm.
The India Real Estate Dictionary PDF explains rental, sale and land-record terms in plain English for ₹499. The online dictionary is free.
Get the Dictionary PDF — ₹499 →| Untrained agent says | Trained agent knows |
|---|---|
| "The Model Tenancy Act applies everywhere now." | It is a model. Only states that enacted it are bound; check the state list. |
| "11 months means no stamp paper needed." | 11 months avoids compulsory registration, not stamp duty. |
| "In Pune, just notarise it." | Section 55 requires registration of every leave and licence in Maharashtra. |
| "If rent is late, cut the water." | Withholding essential supplies is barred under the MTA, and invites a dispute anywhere. |
| "Rentals need RERA too, pay me extra for it." | Section 2(zm) speaks of sale; rentals are generally outside it. |
RERACertified™ Pro covers the RERA Act, agreements, documentation and your state track, so you can answer landlords, tenants and buyers accurately.
Enroll in RERACertified™ Pro — ₹4,999 →RERACertified sells this course. RERACertified™ Pro is a private certification and does not replace state RERA agent registration.