It’s been more than a year since the first lockdown because of Covid-19 in India. A lot has changed for millions of people during these challenging times - Lives lost and lives changed.
The government’s approval for the Model Tenancy Act is a landmark reform that will usher in a new era for the real estate sector in the country. The Indian residential rental segment has been by large been unstructured so far with zero policy interventions so far. The archaic Rent Control Act currently in force has done very little to instil faith in the landlords who viewed it as pro tenant and preferred to keep it vacant rather than let it out. As per some estimates, there are over 11 million residential houses lying vacant despite a huge housing shortage.
There comes a time in every individual’s life when he/she has to move out of his hometown and relocate to a new city for professional reasons. The first order of business for individuals relocating to a new city is finding accommodation, which comes with its fair share of challenges. Apart from finding a lovely home, the most prominent of these challenges is the security deposit which tenants have to pay to their landlords before moving into the property.
Although well-established worldwide, Surety Bond is a relatively new concept in India. Essentially, a guarantee is issued by a Surety guarantor, whenever there is a need for assurance of a performance of obligations under a contract. In the event of a default by the Contractor, the obligee (the project owner) invokes the surety guarantee to recover its loss. After paying out, the surety attempts to recover its loss from the defaulting principal through the indemnity obtained from the Contractor.