Why Rent Agreement is only for 11 months?

 

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Nowadays, to let a property by owner for rent became benignant for a person who comes in urban area for a job or educational purposes. As we know in old Bollywood Hindi movies, if any tenant is not able to pay the rent, then Landlord tries to vacate the property forcefully by throwing everything out from the place. But in actual sense, such incidents don’t happen. There exists property law which determines the rights and duties of both Owner and Tenant. Having rental property can be advantageous for both the parties, as Tenant gets a roof to live and Owner gets side income for better living.

Following things are important to know as an Owner/ Tenant:

1.  If you are an owner and letting a property on rent then you must check the valid I.D. proof of the person to whom you are letting your property.

2.  Whenever you want to let/take property for rent, one should make the proper rental agreement which must be signed duly by both the parties.

3.  No person can become an owner involuntarily just by residing in the property. There is no such provision in property law of our country where it is stated, by residing so and so years you become real owner.

4.  It is the duty of the owner to give a tenant acknowledgement receipt every month after receiving payment of rent.

5.  One should ensure to check rent agreement properly before signing it.

    If you see, most of the rental agreements created for up-to 11 months. Do you know the reason behind this concept? Let us discuss why agreement made is for 11 months only.

    Rent agreement can be created from 11 months to infinite period. If someone makes an agreement for tenure more than 1 year, then the agreement should get registered under Section-17 of The Registration Act, 1908. Without proper registration that agreement is consider as void.

    Registry of document can be costly as it requires stamp duty on the rental agreement to be paid. To save money, both the parties agree to make agreement for 11 months. To make an agreement legally valid, the agreement must be notarized on minimum Rs.500/- stamp paper.