All you need to know about the transfer of tenancy rights


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transfer of tenancy

As per the Indian tenancy law, a tenant has the right to transfer his tenancy to a new tenant, provided that an explicit tenant transfer clause has been incorporated in the rent agreement and all the norms following the transfer of tenancy agreement have been duly complied.

By nature, a rent agreement is a legal binding on the tenant and violating it implies a substantial compensation to the landlord. However, at times some unavoidable circumstances, either in the family or the job, might compel the tenant to contravene the ongoing rent agreement and vacate the property. Here, since paying a huge amount to the landlord could be financially straining for a tenant, Rakesh Salvi, property consultant, Navi Mumbai avers that handing over the rental occupancy to a new tenant via ‘transfer of tenancy’ is a pragmatic solution. Not many are aware, but an existing tenant can pass on his rental occupancy to a new tenant if an emergency occurs. It is a win-win situation for both the tenant and the landlord. Here, neither the outgoing tenant has to pay any compensation to the landlord nor does the landlord has to undergo the pain of finding a new tenant or lose on any month’s rent during the procedure.

The first step of the transfer of tenancy right is to apprise the landlord of the handover. However, if the existing rent agreement already comprises a ‘tenant transfer clause’, then just a ‘letter of intent’ to the landlord mentioning the notice period would suffice. Typically, the notice period is 30 days, but, if it is not specified in the lease agreement, one can always negotiate with the landlord.

Also, ensure that the new tenant is in accordance with the landlord’s expectation. For instance, if the landlord prefers to rent the space only to families or couples, explicitly highlight it in the advertisements. This is essential because the landlord will have the final say in deciding the new tenant. Additionally, the property owner holds the right to perform the necessary background checks and peruse the prospective tenant’s application, financial report and other documents essential for the lease agreement. Thus, ensure that the new tenant is a genuine person so that chances of rejection are low. Once the new tenant is finalised, a transfer of tenancy agreement has to be signed by all the parties.

Transfer of tenancy agreement

A transfer of tenancy agreement is an important document that categorically highlights the terms and conditions crucial for the peaceful transfer of the rental occupancy. Some of the important details included in the agreement are:

    • Approval of the landlord for the transfer of the tenancy from the outgoing tenant to the new tenant.
    • All the liabilities of the outgoing tenant such as rent, taxes, utility bills and other pending dues have been duly paid.
    • The outgoing tenant has no right, interest, and claim of whatsoever nature in the property.
    • Acceptance of the incoming tenant to the rent agreement and due compliance to it to avoid future conflicts.
    • Acceptance of the new tenant to necessary liabilities  such as rent, taxes, utility bills and others as mentioned in the agreement.

A transfer of tenancy agreement duly signed by all the parties’ acts as a proof of the legal transfer, and also relieves the tenant of all the obligations on the rental unit. Either the landlord or the outgoing tenant can get the agreement prepared with all necessary details mentioned above. Once all the parties sign it, the tenant is officially free to vacate the property, and the incoming tenant becomes the new tenant.


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