Verbal rental deals with acquaintances can backfire; landlords risk long-drawn legal battles
A Bengaluru family has been struggling to evict their ground-floor tenants after nearly five years of irregular rent payments. Despite issuing a three-month notice, which they believed was reasonable, the tenants have refused to vacate the premises. The situation is further complicated by the absence of a formal rental or lease agreement, as the tenants were known to a family member.
The family, whose mother is the legal owner of the property, alleges that the tenants have repeatedly delayed rent payments, ignored eviction requests, and continue to occupy the ground floor despite the notice. Their ordeal has reignited discussions about the lack of formal rental agreements and the growing number of landlord-tenant disputes across Indian cities, which are increasingly turning into drawn-out legal and emotional battles.
“The tenants have been living on the ground floor for nearly 5 years. There is no rental agreement or lease and license agreement because my uncle (mamu) brought them into our house, and he never made any written agreement with them. They do not pay rent properly. They delay rent and give small amounts throughout the month, which has become very stressful for us,” they wrote on social media platform Reddit.
Also Read: Landlord’s Guide: Should you notarise or register your 11-month rent agreement? 7 things to consider
No written agreement? Eviction won’t be easy
Legal experts explained that in such cases, the only option for a landlord is to file an eviction suit in civil court, which can take up to two years to resolve. However, for that, they need to have proper rental agreements in place.
“Landlords often think verbal agreements are fine when renting to acquaintances or relatives,” said advocate Akash Bantia, an advocate in Bengaluru. “But when tenants stop paying or refuse to vacate, the lack of paperwork becomes a nightmare.”
Bantia stated that filing an eviction case in civil court is the only legal recourse. “The process takes time, often around two years, but it’s the only legal remedy,” he said. He said that if tenants continue to occupy a property with the malicious intent of not paying rent, it could even be considered criminal trespass.
Legal experts emphasise that a well-drafted rental agreement, renewed every 11 months, is essential. It is essential evidence in court. Without this document, landlords must justify the lack of renewal and prove consistent ownership and intent.
According to a report in The Economic Times, the Supreme Court has ruled that signed rent receipts are sufficient proof of a landlord-tenant relationship under the Karnataka Rent Act, 1999. The verdict came in favour of Bengaluru-based landlord H.S. Puttashankara, who had filed an eviction case against his tenant. This ruling came about because the tenant had disputed that a landlord-tenant relationship existed between them.
Also Read: ₹3.5 lakh to vacate after skipping rent for a year: ‘I feel trapped’”>Karnataka landlord says tenant demanded ₹3.5 lakh to vacate after skipping rent for a year: ‘I feel trapped’
Tenants’ rights on eviction
Tenants, on the other hand, can challenge an eviction if they have a valid lease. “Every agreement includes a termination clause, so technically, the landlord can ask you to leave,” explained Bantia. “However, a tenant can approach the civil court and seek a stay order, but only if there’s a legal document to back their claim.”
Legal experts clarified that an 11-month rental agreement does not require registration at the sub-registrar’s office. According to the Registration Act, 1908, clause (d) of sub-section (1), registration is mandatory only for a property that is on lease for one year or more.
But when the document is unregistered, it becomes difficult for the tenant to challenge the notice to vacate legally, they said.
In cases where agreements are longer than 11 months and should be registered, parties often avoid paying the stamp duty. According to Section 3 of the Indian Stamp Act, 1899, stamp duty must be paid for every legal document. “In such cases, the courts will first impose a fine on the tenants (or on both parties, since the landlord also signed) before they proceed with the case,” lawyers noted.
Need for government intervention
Bengaluru’s rising real estate prices and informal renting culture highlight the urgent need for government action. Experts call for implementing the Model Tenancy Act (MTA), which the Union Cabinet approved in June 2021.
The MTA aims to regulate tenancy terms, create rent authorities and rent courts, and provide swift ways to resolve disputes.
“The MTA could protect both tenants and landlords by ensuring every tenancy is formalized and disputes are resolved quickly,” said legal experts.
Land and urban development are state subjects, meaning states must adopt the Act individually. So far, only four states have revised their tenancy laws in line with the MTA.
