Rent Agreement For 11 Months: Rent agreement is when, in simple language, there is a written agreement between the property owner and the tenant for giving his property on rent by a person.
If you have been living on rent, you must have noticed that any rent agreement is only for 11 months. In such a situation, a question arises that why is the rent agreement only for 11 months? Why not for one year or just 10 months?
Rent agreement is called a written agreement between the owner of the property and the tenant in simple language for renting out the property. It contains the details of the buyer and the tenant. It also contains the date of renting the house and the time for which it is being fixed.
As per the requirements of the Indian Registration Act 1908, registration of a property on lease for one year is mandatory. Hence, to avoid the registration process and cost of stamp duty etc., the rent agreement is prepared for 11 months only.
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Section 17 (D) of the Indian Registration Act, 1908. According to this section, if any tenant and landlord make an agreement for a period of less than a year, then they do not need to get it registered. That is why people make an 11-month rent agreement to avoid registration fees.
However, the stamp duty is also less when making an 11-month rent agreement. But some states may have different rules for registering a rent agreement. Making an 11-month rent agreement is definitely a way to save registration fees, but it may reduce legal protection. Therefore, definitely take advice from experts.
