News India Live, Digital Desk: Rent Agreement Rule: A large number of people in India go from small cities to big cities in connection with work and live in rented houses. There is a rental agreement between the landlord and the tenant, which is usually called a “rent agreement”. This agreement is generally fixed for 11 months. But have you ever wondered why the rent agreement is only for 11 months? Let’s know the reason and benefits of this.
11 months agreement as per law
According to Indian law, it is mandatory to register in the office of Sub-registrar as per section 17 of the Registration Act, 1908, 12 months or more. In such a situation, both sides also have to pay registration charge and stamp duty. Therefore, both the landlord and tenant survive the process of registration and additional expenses by creating rent agreements for 11 months.
Benefits for landlord
The 11 -month agreement is in favor of the landlord, as this gives the landlord a chance to increase the fare. Also, in case of dispute, the matter does not go to the court. With this, the landlord can protect his property and if not satisfied with the tenant, he can ask him to vacate the house.
Tenants also get benefit
The 11 -month agreement benefits the tenant that if the house is not in accordance with its expectations, then it can change the house without much trouble.
Long time agreement and rent tenancy act
If the rental agreement is for 12 months or more, then it comes under the Rent Tenancy Act. This can lead to the matter in case of dispute, in which the court can determine rental payment and other conditions. In this situation, the landlord cannot recover more than the prescribed fare.
