Rent agreement: Nowadays people shift from one city to another for job. Although every person in India dreams of owning his own house, but not everyone’s financial condition is such that they can buy or get a house built. Therefore, the tradition of taking a house or flat on rent is increasing rapidly in the country.
The most important thing is that the rent agreement is made only for 11 months. This agreement is never made for one year. But do you know why the rent agreement is made only for 11 months and what is the reason behind it?
Read More: Standard Deduction limit: Can the standard deduction limit be increased to Rs 1,00,000 in Budget 2024? |
Why is an 11 month rent agreement made?
Proper rules have been made in the law for rent agreements in the country. It is necessary to make a rent agreement under Section 17 (D) of the Indian Registration Act, 1908. However, this agreement has to be made for at least one year and it is not necessary to register a rent agreement or lease agreement for a period of less than one year. In simple language, your landlord can make a rent agreement only for 11 months.
Due to even the slightest mistake, the property owner has to fight a legal battle for his own property for years. Because of this, a rent agreement of 11 months is made. According to the Rent Tenancy Act, if there is any dispute between the landlord and the tenant regarding the rent, after which if the matter reaches the court, then the court has the right to fix the rent, so that the landlord can pay more. Couldn’t pay the rent.
If a landlord enters into a rent agreement for 11 months, then he does not have to pay stamp duty and registration fees, because the stamp duty payable on it is not mandatory and this also saves the landlord’s expenses. Drafting a notarized rental agreement for 11 months is legally valid. In case of dispute, these agreements can be presented as evidence. To prepare such fare draft, stamp paper of Rs 100 or Rs 200 is used.
