For any agreement which is for the duration of 11 months or less no registration is required. So in your case, you may go ahead and get a lease deed for 11 months wherein the registration is not required.
A 11 month leave and license agreement can be prepared on the rs stamp paper and you can get same notarised. Donot extend on the old agreement. See don't make a lease deed make a leave and license agreement after gap of 15 days as starting date. You are not required to register same just get same notarised. Actually 11 months rental agreement need not be mandatorily registered nor any stamp duty need be paid.
As I opined earlier, the 11 months rental agreement need not be registered mandatorily and no stamp duty need to be paid for this type of agreement. Most rent agreements are signed for 11 months so that they can avoid stamp duty and other charges. According to the Registration Act, , the registration of a lease agreement is mandatory if the leasing period is more than 12 months.
However, the stamp duty and registration charges for longer duration may differ. One reason stated for 11 month agreement is to skip the registration process. A rental agreement is a legal document that binds the owner of the property and tenant and safeguards the interest of both the parties.
It is important as it protects the rights of a landlord as well as the tenant. It prevents the unnecessary hikes and eviction without prior notice of minimum one month. The section 17 of Registration Act provides leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent; months requires compulsory Registration.
However a lease agreement of 11 months does not require compulsory Registration. Hence instead of renewing the agreement, you may enter into a fresh agreement to avoid registration. Schedule a minute call with a lawyer. Legal advice online in India. We have a tenant who wants to renew the lease for another 11 months. 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.
Landlords, who rent their premises under these laws, will find it extremely difficult to revise rents and evict tenants, for instance. If they reconstruct the unit with the prior permission of the tenants, landlords can increase the rent amount by a maximum of 15 per cent of the cost of the additions done in the property.
In Maharashtra, an increase of four per cent per annum is permitted while in Haryana, no increase is allowed for five years, once the fair rent has been fixed.
This is not counting the professional fees due to lawyers or other intermediaries for all the paperwork. It is to avoid paying these charges that many landlords and tenants mutually agree to not get the agreements registered. In case you want to register a lease, tenant and landlord can agree to share its cost.
Never miss a story! Stay connected and informed with Mint. Download our App Now!! It'll just take a moment. In consonance with Section 17 of the Registration Act, , it becomes necessary to register the rent agreement of more than one year with the local authorities.
Generally, it is the tenants that have to bear the additional renting cost by cause of stamp duty and registration charges. Legal repercussions Apart from monetary strain, there is the legal onus to look upon as well.
First of all, an unregistered rent agreement of more than a year's validity is not admissible in the court as a piece of evidence if any dispute arises in the future. Apart from this, a fat penalty is also levied if the registration of a rent agreement with a term equal or more than one year is not done.
What is the month rental agreement stamp paper value? Customarily, a stamp paper of Rs 20 - Rs can be utilized for a rent agreement of an month duration. Facebook Twitter Linkedin EMail. Start a Conversation.
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