..::Rent Laws in Punjab

NOTE: Punjab Rented Premises Act, 2009 is ONLY applicable to the province of Punjab, Pakistan.

The purpose of under mentioned brief is to provide landlords and tenants in Punjab with information about their responsibilities and legal rights especially for overseas Pakistanis who want to rent out their residential and commercial properties. The said information is not intended to be a substitute for professional legal advice because factual circumstances are different in each case, detailed legal research is necessary to resolve any dispute or giving any opinion.

Q: Which law deals for regulating relationship between landlord and tenant in respect of rented premises in the province of Punjab, Pakistan?

A: Punjab Rented Premises Act, 2009 is the Act which regulates the relationship of landlord and tenant in respect of rented premises in the province of Punjab, Pakistan.

Q: Whether the Punjab Rented Premises Act, 2009 is applicable to commercial premises also?

A: Rented Premises law governs the rental of commercial and residential property both.

Q: Is Punjab Rented Premises Act, 2009 is also applicable in Cantonment areas?

A: The said law is not applicable in cantonment areas the law which governs Cantonment area in tenancy matters is Cantonment Rent Restriction Act, 1963.

Q: Is agricultural land also covered in Punjab Rented Premises Act, 2009?

A: No, agricultural land is not covered.

Q: Is agreement in writing necessary to create the relationship of landlord and tenant?

A: Yes. Landlord shall not let out the premises to a tenant, except by a tenancy agreement. Tenancy agreement should be in writing and should be registered by rent Registrar. A tenancy agreement entered in the office of a rent Registrar shall be a proof of the relationship of landlord and tenant.

Q: What is tenancy agreement?

A: Tenancy agreement is an agreement in writing between landlord and tenant by which landlord lets out his premises to a tenant.

Q: How is tenancy agreement made?

A: There is no prescribed format for a tenancy agreement. The contents of the tenancy are up to the landlord and the tenant, however tenancy agreement must comply with the provisions of Punjab Rented Restriction Act, 2009

Q: Who is responsible for registration of the tenancy agreement before Rent Registrar?

A: Landlord is responsible to present the agreement before the rent Registrar for registration.

Q: What happens if tenancy agreement is not registered in the office of Rent Registrar?

A: If tenancy agreement is not registered with rent Registrar then Rent Tribunal shall not entertain an application on behalf of landlord unless he deposits fine equivalent to 10% of the value of the annual rent in the Government Treasury and in case the tenant needs any legal remedy he has to deposit fine equivalent to 5% of the annual rent in Government Treasury.

Q: What are the provisions for rent increment in The Punjab Rented Premises Act, 2009?

A: The Act recognizes the agreement between landlord and tenant for enhancement of rent, in terms of section 6 (1) (d) of the Punjab Rented Premises Act. The said section states a tenancy agreement shall contain rate of rent, rate of enhancement and due date and mode of payment of rent.

Q: What is the mode of payment of rent?

A: Tenant shall pay or tender the rent to the landlord in the mode and by the date mentioned in the tenancy agreement and if the date is not mentioned then not later than tenth day of the following month.

Q: What if mode of payment is not mentioned in the tenancy agreement?

A: If mode of payment is not mentioned in the tenancy agreement then tenant shall pay the rent to the landlord by paying cash, through money order, or deposit in the bank account of the landlord.

Q: How does the eviction of tenant takes place according to Punjab Rented Premises Act, 2009?

A: A landlord may seek eviction of the tenant if period of tenancy has expired; tenant has failed to pay rent; tenant has committed breach of tenancy agreement; tenant has used the premises for a purpose which is different from the purpose for which it was let out and if premises is sub-let without permission of landlord.

Q: What is subletting? Can a tenant without consent of landlord sublet rented premises?

A: Subletting is an act where tenant re-transfers the rented premises to any other person. Tenant cannot sublet rented premises without the consent of landlord.

Q: Can a lease be terminated before an agreed time period?

A: Lease can be terminated by the consent of parties or by an order of the Rent Tribunal.

Q: Who will pay taxes on the property, landlord or tenant?

A: Tax, fee or charge will be paid by the landlord; however, if a landlord fails to pay a tax, fee or charge relating to the premises then tenant shall pay such charges and will be entitled to reimbursement.

Q: Can landlord and tenant freely agree to determine any rent or the law fixes any particular amount of rent?

A: Punjab Rented Premises Act does not fix any amount or rate of rent. The parties may agree to any amount of rent by mutual consent.

Q: What can a tenant do if a landlord refuses to return his security?

A: There is no provision in the Punjab Rented Premises Act, 2009 for filing an application by the tenant for refund of security therefore in such cases the tenant shall have to file a civil suit before the competent civil court.

Q: Can I make rent agreement for more than 11 months or is it compulsory to make agreement for less than 11 months.

A: An agreement of tenancy can be made for any period agreed between the parties. If such an agreement is for a year or exceeding one year then such agreement requires registration under the Registration Act, 1908.

Q: My lease /rent agreement has been expired; now tenant has been overstaying. The agreement was not renewed; tenant now refuses to vacate my house. What legal action can be taken?

A: A landlord can institute an application for eviction of tenant.

Q: Can a landlord get his property vacated from a tenant, by filing a petition, when there is no written agreement of tenancy between landlord and tenant?

A: No petition for eviction of tenant is competent under the Punjab Rented Premises Act, 2009 unless the tenancy agreement is in writing. Therefore, a suit for possession before a Civil Court shall be competent.

Q: If a tenant wants to improve the landlord’s premises, can he do so and will he end up paying more rent because of improvements made by him?

A: The improvement to the property and any fixation depends on agreement between the parties.

Q: Is a verbal tenancy agreement legal?

A: No, these types of agreement are not recommended by Punjab Rented Premises Act, 2009.

Q: Do tenancy agreements need to be witnessed?

A: Yes it needs to be witnessed.

We provides service in: Resolving dispute between landlord and tenant; Drafting and negotiating commercial leases for offices, shops and industrial projects; Residential and Commercial Transactions; Advising overseas or non-resident Pakistanis on preventive measures they can take for their property; Landlord/Tenant litigation; Property Management Services; Deed for modification of the terms of lease; Business Lease renewals and terminations; Rent review disputes and all other connected matters.

98 comments on “..::Rent Laws in Punjab

  1. Respected Sir,
    Is there any letter,notification available which shows ten percent is minimum enhancement in rent per annum in punjab province? From where I can get that?
    Thanks.

    Like

    • Punjab Rented Premises Act 2009,does not fix any amount or rate of rent. The parties may agree to any amount of rent by mutual consent.The Act recognizes the agreement between landlord and tenant for enhancement of rent, in terms of section 6 (1) (d) of the Punjab Rented Premises Act. The said section states a tenancy agreement shall contain rate of rent, rate of enhancement and due date and mode of payment of rent.

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