Why Rental Agreement is made for 11 months only?

Q: Ever wondered why House Rent Agreement is not made for 12 months or more!

Here is the simple answer.

The main reason behind the 11 months agreement is to skip the registration process. According to the clause (d) subsection (1) of the Registration Act, 1908, registration of the property that is on lease for a year or more is compulsory. Therefore, the standard duration is 11 months for which the Rental Agreement is framed.

If somebody wants to make a Registered Rent Agreement for 12 or more months then it needs to be –

1. Registered and.
2. Parties need to pay heavy stamp duty.

In Order to avoid confusions and unwanted troubles a Tenant Or an Owner should be bound for a period of 11 Months in Rental Agreement, and in case want to increase the duration in special cases, pay higher stamp duty.

Vishal Kumar,

4th September 2019

Rentals in Bangalore

add tags

Follow Discussion

Also see discussions for

Bangalore Rentals Rentals in Bangalore

Replies (1)

Thank you very much for this valuable feedback. According to the Registration Act, 1908, the registration of a lease agreement is mandatory if the leasing period is more than 12 months. If an agreement is registered, stamp duty and registration fee needs to be paid for it. So, to avoid unwanted difficulties in the future most rent agreement is signed for 11 months.