Rent Agreement: The name, address, rent, for how long the rent is to be paid, as well as many other things, are included in the rent agreement. This is a type of lease agreement.
Why is the rent agreement only for 11 months? Know who benefits the tenant or the landlord
Rent Agreement: If you live in a rented house, then you must have got a rent agreement made. But, while making the rent agreement, did you think that why the rent agreement is made only for 11 months? Why is it not made of one year or 6 months? Many people do not know the reason behind this. In such a situation, today we will tell you that the rent agreement (Rent Agreement) Why is it made only for 11 months.
Whenever you rent a house, it is necessary to make a rent agreement. The name, address, rent, for how long the rent is to be paid as well as many other things are included in the rent agreement. This is a type of lease agreement.
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Rent agreement is useful for all these things.
Let us tell you, the Registration Act, 1908 is the reason behind getting the rent agreement made for 11 months. As per the provisions of Section 17 of the Registration Act, 1908, it is not necessary to register a lease agreement for a period of less than one year. Meaning that for a period of less than one year or 12 months, you can make a rent agreement without registration. This option saves landlords and tenants from the process of visiting the sub-registrar’s office to register documents and pay registration charges.
That’s why 11 months agreement is made
It saves you stamp duty if the tenancy duration is less than a year. Which has to be given for registration of rent agreement. To avoid this charge, the landlord and the tenant can mutually decide not to register the lease. Means, to avoid running for the rest of the rent, a rent agreement of 11 months is made.
This is how you can make a rent agreement for one year or more
You can make a rent agreement for 12 months or more. For this, you have to register the rent agreement under the Registration Act. The longer the tenancy period, the higher the stamp duty. It means that the more time you make the rent agreement, the more stamp duty you will have to pay. At the same time, you will not have to pay any charge for the 11-month rent agreement.
