11 Months Rental Agreements

In Uttar Pradesh, for example, the stamp duty on rental contracts is 4% of the annual rent plus the deposit, while the registration fee is 2% of the rental deposit. If your rental document with a duration of more than one year is not registered, it does not serve as proof of proof in court in the event of a dispute. With it, a fat penalty is also imposed if the registration of the rental document does not take place. If the rental period is extended to one year or more, the parties to the transaction must pay stamp duty and registration fees. In accordance with section 17 of the Registration Act 1908, the registration of contracts for the lease of immovable property is compulsory from year to year or for a period longer or reserved for an annual rent. This section therefore applies to one-year leases, which significantly increases rental fees. In such cases, the tenant must bear the stamp duty and registration fees. Data available with Makaan.com shows that 21 percent of landlords who have listed their properties for rent on the site expect their tenants to stay for at least a year. So why are leases usually only signed for a period of 11 months, a month of less than a year? The 11-month agreement is currently under scrutiny. It should be mentioned that such rental contracts are usually concluded for the benefit of residential property and not commercial real estate, since they have a longer rental period and these documents must be registered. The important key here is that it is not enough to simply explain that the contract is “Distinto a vivienda” (not resident), it must also be the truth (i.e. demonstrable).

If the owner and the tenant agree to conclude this type of contract because the owner wishes to do so, it is important to know that at the end of the 11 months, the tenant can claim that he resides in the property, if this were the case, he would have the right to conclude the contract up to a maximum period of 3 years (5 for contracts, signed since 06.03.2019 and 7 if the lessor is a company) to be renewed from the date of signature of the contract, whether the initial contract lasted only 11 months or not. Leases entered into under the provisions of the Indian Easements Act 1882 as vacation and licensing agreements for a period of 11 months are not valid under the Rent Control Acts. Rent control laws, which differ from state to state, have all leases concluded for a period of at least one year within their area of jurisdiction. These archaic laws, widely applied around the world after World War II, set out strict rules that made renting more difficult, especially for the landlord. Landlords who rent their premises under these laws will find it extremely difficult to revise rents and evict tenants. Here are the consequences you face if the lease is extended for more than 11 months: In Haryana, the stamp duty on rental contracts varies between 1.5 and 3 percent of the average annual rent, depending on the rental period indicated in the document…

This entry was posted in Uncategorized. Bookmark the permalink.