Is the rent agreement made only for 11 months? Most people do not know the reason for this | News India

Nowadays many people live in rented houses. Whenever you rent a house, there is an agreement between you and the landlord. This is called rent agreement. This agreement contains some instructions regarding rent and arrangements related to the house. You must have noticed that this rent agreement is made only for 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 states that if the rent agreement is made for less than 12 months, its registration is not required, meaning 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 registration has to be done. For this, registration charge and stamp duty also have to be paid. But if the agreement is for less than 12 months, both the landlord and the tenant are saved from these hassles.

11 month settlement in favor of landlord

The 11 month rent agreement is in favor of the landlord in such a way that the landlord gets the opportunity to increase the rent within the 11 month agreement. Whereas if the agreement is for a long period, then stamp duty has to be paid during registration according to the time of the agreement and the amount of rent. That is, the longer the rent agreement and the higher the rent, the higher will be the stamp duty. By signing an agreement for 11 months, the landlord not only saves himself from the hassle of registration, but in case of a dispute, there is no scope for the matter to go to court. In such a situation, the property of the landlord remains safe.

Long term agreement rent comes under the Tenancy Act

If the period of the rent agreement is for a long period then it comes under the Rent Tenancy Act. This can provide long term benefits to the tenant. In such a situation, if there is any dispute then the matter can reach the court and the court has the right to decide the fare. In such a situation, the landlord cannot charge more rent from him.