Rent Agreement: Why is the rent agreement only for 11 months and not for 12 months? know here...
Nowadays, many people live in rented houses. Whenever you rent a house, there is an agreement between you and the landlord. This is called a rent agreement. This agreement contains some instructions regarding the rent and house-related arrangements. You must have noticed that this rent agreement is made for only 11 months. But do you know why this is done? Know the reason here.
What does the law say
Section 17 of the Registration Act, 1908 says that if the rent agreement is made for less than 12 months, then its registration is not required, that is, both the landlord and the tenant are saved from paperwork. But if the agreement is for more than 12 months, then the documents have to be submitted to the sub-registrar's office and registered. For this, registration charges and stamp duty also have to be paid. But by getting an agreement for less than 12 months, both the landlord and the tenant are saved from these hassles.
11-month agreement is in favor of the landlord
The 11-month rent agreement is in favor of the landlord in such a way that in the 11-month agreement, the landlord gets a chance to increase the rent. On the other hand, if the agreement is for a longer period, then stamp duty has to be paid during registration according to the time of the agreement and the rent amount. That is, the longer the rent agreement and the higher the rent, the higher the stamp duty cost. By getting an 11-month agreement, the landlord not only avoids the hassle of registration but also there is no scope of the matter going to court in case of a dispute. In such a situation, the landlord's property remains safe.
Long-term agreement comes under the Rent Tenancy Act
If the duration of the rent agreement is for a longer period, then it comes under the Rent Tenancy Act. The tenant can get long-term benefits from this. In such a case, if there is any dispute, the matter can reach the court and the court has the right to fix the rent. In such a case, the landlord cannot charge more rent from him.
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