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After all, why is the Rent Agreement only for 11 months? Why people don’t make it for the whole 1 year, know the reason

Rent Agreement Rules: You must have noticed that often the rent agreement is made for 11 months only, but why the rent agreement is made for 11 months only, why not for one year. Do you know the reason for this?

Rent Agreement Rules

It is often seen that many people live away from their homes in other cities for the sake of studies or jobs and most of these people have to live on rent. Before living on rent, the tenant and the landlord have to make a rent agreement, which includes the name and address of both the parties, other terms and conditions like the amount of rent, the period of the rent and the details. Now talking about the rent agreement, you must have also seen that most of the people in our country usually make the rent agreement only for 11 months. But have you ever thought that why the rate agreement is made only for 11 months, why it is not made for the whole year or more? If you do not know the answer to this, then let us tell you about it in some detail today.

That’s why rent agreement is made for 11 months

The biggest reason behind this is the Registration Act, 1908. As per section 17 of this act, it is not mandatory to register lease agreements of less than one year. This means that if the rental period is less than 12 months, the agreement can be entered into without registration. It saves both the landlord and the tenant the hassle of visiting the sub-registrar’s office and paying the registration fee.

Thus, to avoid such charges, an agreement of 11 months is usually done. Moreover, if the rental period is less than one year, the stamp duty is also saved, which has to be paid at the time of registration of the rental agreement. Hence the landlord and the tenant mutually agree not to register the lease.

Can rent agreement be made for one year or more?
However, the agreement can be done for more or less than 11 months. When a person registers a rent agreement, the stamp duty is decided on the basis of the amount of rent and the rental period. The longer the rental period, the higher the stamp duty charges. Therefore, the longer an agreement is made, the more money both the parties have to pay. At the same time, no additional fee has to be paid for making an agreement of less than 11 months.

Most of the rent agreements are done for 11 months to avoid the cost and congestion of other legal procedures like registration and stamp duty. It provides an easy and convenient option for landlords and tenants to enter into a rental agreement without unnecessary charges.

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