Have you ever rented a house? In that case, the landlord must have instructed him to sign an 11-month lease. In India this is the normal standard. Contracts can be renewed multiple times, but have you ever wondered why most rentals are only for his 11 months?
A rental agreement is a document that outlines the rights and obligations of the parties and the legal relationship between landlords and tenants. The terms of the contract must be complied with by both parties.
Legal experts argue that it is very difficult to empty a leased property in India due to complicated procedures and tenant-friendly laws. Due to procedural delays, it often takes years for landlords to receive justice. Tenants may still be using the property in the meantime.
According to a report in economic timesIf the period of residence is less than 1 year, registration is not required. Her leases of less than one year are not required to be registered under Section 17 of the Registration Act of 1908. This means that leases of less than one year can be signed without registration.
If the lease is for less than one year, you can avoid paying stamp duty by choosing not to register the lease, saving you money in the process.
The amount of stamp duty is determined by the rent and length of stay if you choose to register a rental agreement.
The longer the rental period, the higher the stamp duty. Therefore, even if the lease is registered, a shorter term will help reduce the large lump sum payment of stamp duty.
Therefore, as long as it helps landlords and tenants avoid large payments, both often stay on the same page.
According to a report in financial express, in Maharashtra, there is a concept known as leave and license agreements that are only valid for a maximum of five years. Under this arrangement, the owner or licensor authorizes the licensee to possess the property only for the specific purposes outlined in the contract.
In Maharashtra, vacation and license agreements are more common than lease agreements, as the licensee is given the right to occupy the property for a specific period of time and the lessee is given more protected rights by law.
A similar practice is common in Delhi, where 11-month leases are more common than long-term rentals.