According to section 17 of the registration act, of 1908, in India, it is compulsory to have an agreement for a yearly rent of an immovable asset. This is to avoid any future disputes related to the concerned property. The rental act of India is to ensure who is the owner of the property and who is the lessee in the agreement.

While there is no hard and fast rule to have a rental agreement, the statistics show that people who have a legal rental agreement majorly don’t suffer compared to those who don’t get it done. The reason why they don’t suffer is quite simple. The agreement becomes proof of everything when things have been pre-decided between the tenant and the owner and get an additional government stamp.

So, when a problem occurs, the agreement can be presented as proof, automatically solving everything.

If the tenant is not ready to leave the property despite the end of the agreement, the owner can use the agreement and get the tenant to vacate the home/shop. And if the owner is forcing the tenant to vacate the space before the lease time, the tenant can present the agreement as legal proof of the tenure.

These things occur too much in India. People use power and dominate others in the wrong ways. So when the legal agreement is done, it becomes easier for the authorities to help the suppressed one. But when nothing is openly mentioned, and agreement is avoided for any reason, sometimes things get clumsy, and it takes time for the authorities to solve the problem.

Hence, a legal rental agreement ensures no one suffers, and the property stays safe, automatically making it a mandatory agreement. And that was one of the essential points to know before renting a house.