Rent Agreement Rules: Why are rental agreements made for 11-month duration? Know here

11 Months Rent Agreement: Many people live away from their homes in another city for the sake of studies or jobs and mostly live on rent. Renting a house requires the tenant and landlord to make a rent agreement which includes details like the name and address of both parties, amount of rent, rental period and other conditions. Rent agreements are usually made for 11 months and this raises the question, why only 11 months?

One reason behind this is the Registration Act, 1908. According to section 17 of the act, lease agreements of less than one year are not mandatory to be registered. This means that if the rental period is less than 12 months, the agreement can be made without registration. This saves both the landlord and the tenant from the hassle of visiting the sub-registrar's office and paying registration charges.

Thus, to avoid such charges, an agreement of 11 months is commonly made. In addition, if the rental period is less than a year, the stamp duty is also saved which has to be paid on registering the rent agreement. As a result, landlords and tenants mutually agree to not register the lease.

However, it is possible to make an agreement for more or less than 11 months. When a person registers a rent agreement, the stamp duty is decided based on the amount of rent and the rental period. The longer the rental period, the higher the stamp duty. Therefore, the more time an agreement is made for, the more money the parties will have to pay. There is no extra charge for making an agreement of less than 11 months.

The reason behind most rent agreements being made for 11 months is to avoid the expenses and rush of other legal procedures like registration and stamp duty. This provides an easy and convenient option for landlords and tenants to make a rental agreement without unnecessary charges.

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