People all over the world move from one city to another for a job or study. Where they need a house to live. In such a situation, when a person buys a house or flat on rent, a time-period agreement is made between the landlord and the tenant, which is known as a rent agreement. Many of us also sign this agreement. But have you ever noticed why this agreement is made for 11 months and not for 1 year? Let us know why this agreement is made only for 11 months.
Why is a rent agreement not made for more or less than 11 months?
The Registration Act, 1908 is the reason behind making an 11-month agreement on buying a rented house. Under Section 17(D) of the Act 1908, the landlord is required to make a rent agreement. According to this rule, the rent agreement has to be made for less than one year. By doing this there is no need to register the rent agreement or lease agreement. With this, he does not need to pay stamp duty and registration fees. Along with this, if any kind of dispute arises then the agreement is presented as evidence. If understood in simple words, there is no need to rush to get a contract for 11 months.
Why don't landlords make 12-month rent agreements?
If the agreement is made for 12 months i.e. 1 year, then along with getting that contract registered at the Sub Registrar, he has to face other legal procedures due to which the owner has to run around and spend a lot of money. To avoid all these things, an 11-month rent agreement is made between the tenant and the landlord. Apart from this, if for some reason a dispute arises between the owner and the tenant, then the court hears the case under the Rent Tenancy Act.
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