Rent Agreement: Whenever you rent a house, there is an agreement between you and the landlord. This is called a rent agreement. Have you ever wondered why it is always for 11 months? Know the reason here-
Rent Agreement: 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 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 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 registration has to be done. For this, registration charge and stamp duty also have to be paid. But by making an agreement for less than 12 months, both the landlord and the tenant are saved from these hassles.
Also Read- Rent Agreement: These 10 essential points to double check before signing your rental agreement
11 month agreement is in favor of the landlord
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 amount of rent. 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 saves himself from 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.
Longer term agreement comes under Rent Tenancy Act
If the duration of the rent agreement is for a longer period, then it comes under Rent Tenancy Act. The tenant can get long term benefits from this. In such a situation, if there is any kind of dispute, the matter can reach the court and the court has the right to fix the rent. In such a situation, the landlord cannot charge more rent from him.
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