- By Aditya Pratap Singh
- Tue, 02 Jan 2024 03:42 PM (IST)
- Source:JND
Rent Agreement Tenure: If you live in a rented house then you should know about the rent agreement. The agreement is a mutual consensus between the tenant and the landlord which is signed by the landlord, tenant and witnesses. Under the agreement, some special instructions related to rent and house are mentioned.
The things that we talked about above are something the majority of us know, but have you ever wondered why the rent agreement has a validity of 11 months? If you wonder then you should read the story til the end.
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Why rent agreements have 11 month's tenure
According to Section 17 of the Registration Act 1908, no rental agreement has to be registered unless it is for more than 12 months. In such case, an agreement of less than 12 months, has not to be registered and both the landlord and the tenant are saved from paperwork. But if the agreement is for more than 12 months then both parties may have to visit the registrar's office.
Landlord get benefitted
The 11-month agreement is in favour of the landlord. Because they can increase the fare after 11 months. If the agreement is long then during registration, stamp duty will have to be paid according to the time and amount of rent specified in the agreement.
The longer the rental agreement and the higher the rent, the more stamp duty will have to be paid.
The landlord benefits in another way as well. If any dispute may occur between the two parties then the matter does not reach to the court. If the duration of the agreement is long then it will come under the Rent Tenancy Act.
