11 Months Rent Agreement: In connection with studies or jobs, lakhs of people live away from their homes in some other city. Such people mostly live on rent, because not everyone can buy or build their own house again and again. You too must have been on rent at some point or the other or are still living. To live on rent, everyone has to make a Rent Agreement.
These things are mentioned in the rent agreement
Whenever you rent a house, a rent agreement has to be made. In this, the name and address of the tenant and the landlord, the amount of rent, the period of rent and all other conditions are written. Rent agreement is a type of lease agreement. Most of the rent agreements are made for 11 months. You too must have made an agreement for 11 months to stay on rent, but have you ever wondered why the agreement is made for 11 months only?
Avoid this problem
In fact, one of the reasons behind making a rent agreement of 11 months is the Registration Act, 1908. As per the terms of section 17 of the Registration Act, 1908, it is not mandatory to register the lease agreement if the period is less than one year. This means that rent agreements for less than 12 months can be made 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.
Due to this, an agreement of 11 months is made.
If the period of tenancy is less than one year, the stamp duty is also saved by not registering it, which has to be paid on registering the rent agreement. To avoid such charges, generally the landlord and the tenant mutually decide not to register the lease. This means that apart from rent, the trend of making rent agreement for 11 months is popular to avoid the expenses and rush in other legal procedures like registration.
This is how long term agreement can be made
However, you can also make an agreement for more than 11 months and less time. Whenever a person registers a rent agreement, the stamp duty is decided on the basis of the amount of rent and the period of rent. The longer the tenancy, the higher the stamp duty. That is, the more time you make an agreement, the more money you will have to pay. There is no extra charge for making an agreement of less than 11 months.
