Rent Agreement Rules: Whenever you take a house on rent, there is a rent agreement for 11 months with its owner. It is renewed again in the 12th month. Have you ever wondered why the rent agreement is only for 11 months? Why not a year or more? What is the value of this agreement made on 100 or 200 stamp?
What is Rent Agreement?
Under Section-17 (D) of the Indian Registration Act, 1908, a rent agreement or lease agreement is made for a rented house for a period of less than one year. This agreement is a contract between the landlord and the tenant. In which the fixed conditions between the tenant and the property owner are written.
Why is the rent agreement made for 11 months?
As per available information, most of the laws in the country are in favor of the tenant. In such a situation, if there is a dispute between the tenant and the owner, it becomes very difficult to vacate the property. In many cases, the property owners had to fight a long legal battle to get back their own property. That’s why the rent agreement is made for 11 months only. However, the agreement made on this stamp of 100 or 200 rupees does not have any legal validity.
Extra charge for 12 months or more
Under the Indian Registration Act, stamp duty and registration charges also have to be paid for making a rent agreement for a period of 12 months or more. Therefore, to avoid this expense, most of the tenants and landlords make a rent agreement for 11 months only.
Remedy to avoid adverse possession
According to the Transfer of Property Act, under adverse possession, the possessor of the property is also entitled to sell it. If someone keeps adverse possession on the property for 12 years, then he gets the right over the property. To avoid this situation, the rent agreement is kept for 11 months, so that it can be renewed in the 12th month. By doing this situation like possession can be avoided.
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