A shop rent agreement is a legal document that outlines the terms and conditions under which a shop space is rented or leased from a landlord (lessor) to a tenant (lessee). This agreement is crucial for both parties as it provides clarity and protection regarding their respective rights and responsibilities. In this article, we will see the format of the Shop Rent Agreement along with an example.
Shop Rent Agreement Format
Example of Shop Rent Agreement
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Shop Rent Agreement Format – FAQs
Is a written shop rent agreement compulsory?
No, there is no compulsion to get a written rent agreement; the tenant can still pay rent to the owner without the existence of any written agreement and can continue to use the premises. When the tenant is paying rent and the owner is accepting the rent, it is implied that a contract exists between them.
Can we sign electronically on a shop rent agreement?
Yes, the law permits and imposes no restriction on signing the rent agreement electronically.
What is the lock-in period?
When the agreement contains a lock-in period, it means the premises can’t be left before the completion of the mentioned time period. Both parties need to follow this clause.
Under which act is a shop rent agreement registered?
A shop rent agreement must be registered under the Registration Act of 1908.
Does shop rent attracts GST?
The lessor is required to pay GST on rent paid, if the subjected property is used for commercial purpose.