Why is the rent agreement only for 11 months? What does the rule of registration act say

If you have taken a property on rent or live in a rented house, then you must have seen the rent agreement of 11 months. Have you ever wondered why rent agreement is only for 11 months? If you make it one year, then what is the loss? So let's know about it. There is an agreement between the tenant and the property owner while taking a house or shop for rent. The tenant does not specify with certainty how long he has to stay in the house. The landlord also does not have any concrete information about this. But there is an agreement between the two in which there are some instructions regarding the arrangements related to the rent and the house. This is called a rent agreement, which is signed by the tenant, the landlord and the witness. Normally this agreement is for 11 months.

At the end of 11 months, a new agreement has to be made. It is also written in the agreement that next time the fare will be increased by 5 or 10 percent. When the next rent agreement is made, the information about the rent is given in it. After 11 months the rent of the tenant also increases. Why is it that after 11 months another rent agreement has to be made. If its tenure was more months, then the tenant would have benefited and the rent would increase after some time. But it didn't happen. Let's find out why.

What does the Registration Act say

Section 17 of the Registration Act, 1908 states that if the term of a lease agreement does not exceed one year, it does not need to be registered. This means that if a rent agreement is made for less than 12 months, there is no need to register it. This saves both the landlord and the tenant from many paperwork and hassles. Actually, if the lease agreement is for more than 12 months, then the documents related to it have to be registered in the sub-registrar's office. There is also a registration charge to be paid for this. To avoid this, the landlord and the tenant get the rent agreement made for less than 12 months i.e. 11 months.

There is another big reason. If the tenure of the rent agreement is longer, then the rent paid by the tenant can come under the purview of the Tenancy Act. There is also a rule for rent control in this act. If for any reason there is a dispute between the tenant and the landlord, then the matter reaches the court, then the rent can be fixed, which the landlord cannot take more. This is in the benefit of the tenant. Therefore, to avoid getting caught in the court-court affair and getting the rent fixed, the rent agreement is done for 11 months only. This agreement is neither registered nor is there any scope for the matter to go to court. The landlord gets the benefit from this and his property remains safe.

Also saves cost

If the rent agreement is not registered, then the stamp duty is less. The agreement is also done with less stamp and this saves the cost. If the rent agreement is registered, then the cost of stamp duty depends on the time of agreement and the amount of rent. This means that if there is a rent agreement for more days and if the rent is also higher, then the cost of stamp duty will increase. To avoid this, a rent agreement of 11 months is also done.