While taking a house on rent, there is a need to make a rent agreement. The rent agreement contains many information including rent. The rent agreement also acts as a temporary residence certificate. 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?
In fact, according to Section 17 (D) of the Indian Registration Act, of 1908, it is not necessary to register a rent agreement or lease agreement for less than one year. This means that landlords can make a rent agreement only for 11 months. According to legal experts, the biggest reason for this is the complex laws in India and most of the laws being in favor of tenants. If the property owner has a dispute with the tenant and wants to get the tenant to vacate the property, then it is a difficult task for him.
Due to even the slightest mistake, the property owner has to fight a legal battle for his property for years. Because of this, a rent agreement of 11 months is made.
Under the Rent Tenancy Act, if there is any dispute over rent and the matter reaches the court, then the court has the right to fix the rent. Then the landlord will not be able to charge more rent.
Apart from this, the main reason for making a rent agreement for 11 months is also to avoid stamp duty and registration fees. If the rent agreement is for less than one year, then stamp duty payable on it is not mandatory.
Drafting a notarized 11-month rental agreement is legally valid. In case of dispute, these agreements can be presented as evidence. To prepare such a fare draft, stamp paper of Rs 100 or Rs 200 is used.
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