Be it Delhi-Mumbai or Kolkata, people from all the cities of the country come to these big cities in search of work and earn their livelihood by living on rent here. While renting a house to these people coming from outside, a rent agreement has to be made, it is considered important from the security point of view and many types of information are written in this agreement. But this agreement is made for a whole year or rather for 11 months only. Now you must be thinking that there are 12 months in a year, yet why is an agreement made for one month less and what is the reason behind this?
Rent agreement is made only for 11 months
Rules have also been made for tenants in the Indian law. One of these includes the law related to rent agreement. Even though there are 12 months in a year, but under section 17 (D) of the Indian Registration Act, 1908, it is not mandatory to register a rent agreement or lease agreement for a period less than one year. This means that the landlord can make a rent agreement for only 11 months without any registration. That is, while giving a house on rent, landlords and tenants do not need to go to the sub-registrar office to register the documents and pay the registration charges.
Big role in dispute between tenant and landlord
According to experts, most of the laws made in India regarding rent are in favor of the tenants. In such a situation, if a property owner has a dispute with a tenant and he wants to vacate the property from the tenant, then it is a very difficult task for him.
This is how it comes in handy in case of a dispute:
Due to a small mistake, the property owner has to fight a legal battle for his own property for years. This is a major reason why a notarized rent agreement is made for only 11 months and it is legally valid. If a situation of dispute arises, then the agreement can be presented as evidence. In the Rent Tenancy Act, if there is a dispute regarding rent and the matter goes to the court, then the court has the right to fix the rent. Then the landlord cannot charge more rent than that.
You won’t have to visit the registrar’s office;
Another big reason or advantage of making an 11-month rent agreement is that stamp duty and registration fee is not required to be paid for the agreement for this period, if the rent agreement is made for a period of less than a year, then stamp duty payable on it is not mandatory. The 11-month rent agreement is in favor of the landlord. The rent agreement fee has to be paid by the tenant. Usually, a stamp paper of Rs.100 or Rs.200 is used to prepare the draft of a notarized rent agreement.
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