Why 11 month lease

Paytm IPO. Bank Holidays in November. This story is from December 14, But what about the rental agreements of less than one year? In fact, a lot of rent agreements are drafted for months. Do you have one too? Is it credible in the eyes of law?

Such rental agreements are completely authentic and can also be present in the court as a piece of evidence.

As a matter of fact, most of the people be it the tenant or the landlord opt for an month rent agreement because of its subtleness and affordability. If you would like to complete the formalities in a quick and hassle-free manner, all you need to do, is fill out the details, create the Rent Agreement Online , sign the agreement digitally and get it e-stamped in seconds. In Uttar Pradesh, for instance, stamp duty on lease agreements is four per cent of the annual rent, plus security deposit while the registration charge is two per cent of the rent deposit.

In the national capital of Delhi, two per cent of the average annual rent must be paid as stamp duty, with a standard Rs 1, as registration charge. In Haryana, the stamp duty on lease agreements varies between 1. The registration charge varies between Rs 1, and Rs 16,, depending on the rent amount. Rent agreements that are carried out under the provisions of The Indian Easements Act, , as leave and licence contracts for a period of 11 months, have no validity under rent control laws.

Rent control laws, which differ from state to state, have under their purview all lease agreements that are conducted for a period of at least a year. These archaic laws, which were largely implemented across the world after World War-II, set strict rules in place which make renting difficult, especially for the landlord.

Have you ever wondered why most rent agreements are for a duration of 11 months? Often, neither landlords nor tenants and not even the real estate agents know why this is so. Also known as a lease agreement, the rent agreement is a written contract between the owner of a property the landlord and the tenant who takes it on rent.

The agreement specifies the terms and conditions based on which the property is let-out, such as: description of the property address, type and size , monthly rent, security deposit, purpose for which property can be used residential or commercial , and duration of the agreement.

Its terms and the conditions can be negotiated but after it is signed, it is binding on both the landlord and tenant. It also specifies the conditions under which the agreement can be terminated. According to the Registration Act, , the registration of a lease agreement is mandatory if the leasing period is more than 12 months.

If an agreement is registered, stamp duty and registration fee needs to be paid for it. Add a flat fee of Rs, if a security deposit is part of the agreement. The stamp paper can be in the name of the tenant or the landlord.