Moving into a rented home based solely on a verbal promise instead of a written agreement may seem harmless, but is it really? People often do this to avoid lengthy paperwork or quickly secure a place to stay. While oral agreements are legally recognised in India, they can easily backfire. Without anything in writing, tenants may face uncertainties over rent hikes, sudden evictions, repairs, and the return of their security deposit.In the absence of a written contract, Section 106 of the Transfer of Property Act, 1882, legally assumes you are on a month-to-month lease. This means either the landlord or the tenant can wrap up the tenancy and walk away by giving just a 15-day notice. Because there is no fixed timeline or “rent-lock” period, a landlord can decide to raise the rent for the very next month. If the tenant doesn’t agree to the new price, the landlord can simply end the tenancy legally.Going without a written contract also means losing peace of mind over your security deposit. There is no official record of how much you paid, when you should get it back, or what counts as a fair deduction for damages. This frequently leads to bitter arguments over delayed refunds, unfair deductions, or landlords refusing to return the money entirely.Daily living can also get confusing very fast. Without written rules, it’s hard to say who is responsible for fixing a leaky pipe, dealing with faulty wiring, or repairing appliances. The same goes for personal touches. Tenants and landlords often clash over whether it’s okay to paint the walls, put up an AC, drill holes for shelves, or keep a pet. However, even without a contract, tenants generally cannot make major structural changes to the property without the landlord’s explicit permission.If things go south and you end up in court, proving the specifics of a verbal agreement is incredibly difficult. While you may use bank transfers, text messages, rent receipts, or witness statements to prove your tenancy, specifics like the agreed rent amount and lease duration will remain questionable. The law actually tries to prevent these situations. Section 107 of the Transfer of Property Act, along with the Registration Act of 1908, states that any lease lasting longer than a year must be officially registered. Additionally, the government introduced the Model Tenancy Act in 2021, which makes written agreements mandatory and clearly outlines everyone’s rights. However, because it is a “model” framework, it only applies in states that have officially adopted it so far, namely Andhra Pradesh, Tamil Nadu, Uttar Pradesh, and Assam. Similarly, the provisions of the Transfer of Property Act may not apply where a specific rent control or tenancy law exists in a state.
