All you need to know: Why are rent agreements for 11 months preferred in India

When you take a house on rent, it is mandatory to make a rent agreement. The rent agreement mentions the rent amount and many other things. This tenancy agreement serves as a temporary home address.

The rental agreement is not made for 1 year, it is made for 11 months permanently. But did you know? After all, why is the rental agreement only for 11 months? What exactly is the reason behind this? Let's find out.

In fact, under Section 17(d) of the Indian Registration Act, 1908, it is not mandatory to register a tenancy agreement or a lease agreement for a period of less than one year. This means the landlord can only enter into a tenancy agreement for 11 months.

According to legal experts, one of the main reasons for this is the complicated laws in our country and the fact that most of the laws are in favor of tenants. In such a situation, if the property owner has a dispute with a tenant and wants to vacate the property from the tenant.

If there is a slight mistake in the contract, the owner of the property has to fight years of legal battles for his property. Hence the rental agreement is only for 11 months.

In the Tenancy Act, if a dispute arises regarding the rent and the matter goes to court, the court has the power to fix the rent. Then the landlord cannot charge more than that.

Besides, the main reason for entering into a tenancy agreement for 11 months is to avoid stamp duty and registration charges. Because if the tenancy agreement is for less than one year then stamp duty is not mandatory.

Drafting a notarized tenancy agreement for 11 months is legally valid. In case of dispute, these agreements may be submitted as evidence. A stamp paper of Rs 100 or Rs 200 is used for preparing such fare draft.

The central government has passed the Model Tenancy Act to protect the interests of landlords and tenants. This Act is useful in settling the ongoing disputes between landlords and tenants over rent.

How to register tenants? Every police station has an application form to be filled by the tenant. The information of landlord and tenant has to be filled in the application. There is a photograph of both on the application form. A xerox copy of the agreement between the landlord and the tenant along with their identity cards.