Drafting a tenancy agreement is one of the most frequent assignments handled by advocates engaged in property and civil law practice in India. For law students and young lawyers aspiring to start their own independent practice, a strong command over tenancy agreement drafting is both commercially valuable and legally necessary. A tenancy agreement governs the relationship between the landlord and tenant and defines their respective rights, duties, and liabilities. Improper or vague drafting often leads to disputes, eviction proceedings, or prolonged litigation. This article explains the essential clauses to be included in a tenancy agreement under Indian law, along with relevant statutory provisions that guide such drafting.

The identification of parties clause is the foundation of a tenancy agreement. This clause clearly specifies the full name, age, address, and legal status of the landlord and the tenant. Proper identification is essential to establish privity of contract and to determine who can enforce or be bound by the agreement. In case the landlord is not the absolute owner, the authority to lease the property must be clearly stated to avoid future disputes.

The description of the premises clause provides a detailed description of the property being let out. This includes the full address, floor number, flat or shop number, area, boundaries, and any appurtenant facilities such as parking or storage. Accurate property description is crucial for enforceability and is also relevant for registration purposes under the Registration Act, 1908. Courts rely heavily on this clause to identify the subject matter of the tenancy.

The term or duration of tenancy clause specifies the period for which the property is let out. Under Section 107 of the Transfer of Property Act, 1882, a lease of immovable property for a term exceeding one year must be made through a registered instrument. Most residential tenancies in India are drafted for eleven months to avoid compulsory registration, though registration is advisable even in such cases for evidentiary value.

The rent clause clearly mentions the monthly rent payable, the due date, and the mode of payment. This clause must be drafted with clarity to avoid disputes regarding arrears or default. Rent control laws in various states may impose restrictions on rent enhancement and eviction, and therefore this clause must be aligned with the applicable state Rent Control Act or Model Tenancy Act, where notified.

The security deposit clause specifies the amount of deposit paid by the tenant, the purpose for which it is held, and the conditions for refund. While there is no uniform central law governing security deposits, state laws and judicial precedents emphasize reasonableness. Excessive security deposits may be challenged as unfair or unconscionable.

The purpose of tenancy clause defines the permitted use of the premises, whether residential, commercial, or mixed use. Under Section 108(o) of the Transfer of Property Act, the tenant is prohibited from using the property for purposes other than those agreed upon. Clear drafting of this clause helps the landlord take action in case of misuse.

The maintenance and repairs clause allocates responsibility for day-to-day maintenance, structural repairs, and payment of utility charges. Section 108 of the Transfer of Property Act outlines the rights and liabilities of lessors and lessees, including duties relating to maintenance and preservation of property. Clear allocation of responsibilities reduces ambiguity and conflict.

The subletting and assignment clause specifies whether the tenant is permitted to sublet or assign the premises. Under Section 108(j) of the Transfer of Property Act, a lessee may transfer their interest unless restricted by the contract. Most tenancy agreements expressly prohibit subletting without the landlord’s prior written consent to protect ownership interests.

The lock-in period clause, commonly used in urban tenancy agreements, specifies a minimum period during which neither party can terminate the agreement. While not expressly governed by statute, such clauses are enforceable under the Indian Contract Act, 1872, provided they are reasonable and not opposed to public policy.

The termination and notice clause is one of the most critical clauses in a tenancy agreement. Section 106 of the Transfer of Property Act prescribes notice periods for termination of leases in the absence of a contract to the contrary. A well-drafted agreement clearly specifies the notice period, grounds for termination, and consequences of default. This clause plays a decisive role in eviction proceedings.

The rent escalation clause provides for periodic increase in rent, usually annually or after renewal. This clause must comply with rent control regulations applicable in the relevant state. Excessive or arbitrary escalation may be struck down by courts or rent authorities.

The indemnity clause protects the landlord against losses arising from misuse of the property, illegal activities, or damage caused by the tenant. Indemnity clauses are enforceable under Sections 124 and 125 of the Indian Contract Act, 1872, and are commonly relied upon in property disputes.

The inspection and entry clause grants the landlord the right to inspect the premises at reasonable times with prior notice. This clause balances the landlord’s ownership rights with the tenant’s right to peaceful enjoyment under Section 108(c) of the Transfer of Property Act.

The governing law and jurisdiction clause clarifies that the tenancy agreement is governed by Indian law and specifies the courts having territorial jurisdiction. Generally, courts where the property is situated have jurisdiction over tenancy disputes.

The registration and stamp duty clause records compliance with the Indian Stamp Act, 1899 and the Registration Act, 1908. Proper stamping and registration enhance the legal validity and evidentiary value of the tenancy agreement.

The execution and witness clause records that the agreement has been executed voluntarily by both parties in the presence of witnesses. Proper execution strengthens enforceability and reduces allegations of coercion or fraud.

In conclusion, drafting a tenancy agreement under Indian law requires a careful understanding of property law, contract law, and state-specific rent regulations. For law students and aspiring independent practitioners, mastering tenancy agreement drafting is a practical and revenue-generating skill. A well-drafted tenancy agreement not only safeguards the interests of landlords and tenants but also reflects the lawyer’s competence, legal clarity, and professional reliability in property law practice in India.