Now you clearly know the reason for the 11-month legal rental documents. It helps both the landlord and a tenant avoid additional fees for registration fees and stamp duty and eliminates the registration process. This makes contracting more economical and faster. In Haryana, stamp duty on leases varies between 1.5 and 3% of the average annual rent, depending on the rental period indicated in the document. Registration fees vary between Rs 1,500 and Rs 16,000 depending on the amount of rent. In Uttar Pradesh, for example, stamp duty on leases is four per cent of the annual rent plus the deposit, while the registration fee is two per cent of the deposit. It also prevents unnecessary increases in rental value and the evacuation of premises without a minimum of one month`s notice. “From a monetary point of view, it would be costly for a tenant to enter into leases for a period of more than 11 months. From a legal point of view, it would be quite complicated for the owner,” adds Mishra. To avoid these fees, many landlords and tenants mutually agree not to register the agreements. If you want to register a rental agreement, tenants and landlords can agree to share their costs. As mentioned above, a rental agreement indicates the number of clauses such as the description of the property, the amount of the rent, the deposit and so on.
It also mentions the circumstances under which the contract may be terminated. It can be said that a contract originally entered into to protect the interests of both parties can also be used as evidence through subsequent litigation. Most leases are signed for 11 months, so they can avoid stamp duty and other fees Case II: There may be a different situation where the signed contract will last three years, and the rent will increase with a rate of 10% per year. In this case, the “average” annual rent of three years is the annual rent for the second year, since stamp duty is calculated on the average annual rent and not on the annual rent of the first year. One of the best and best ways to make money is to rent a property. If the property is empty, the owner can rent it to someone. But the most important thing in renting a property is the lease. In this article, we will examine why the lease is only for 11 months and not for 12 months or more. First of all, let us understand what the lease is? The lease is also called a lease agreement. It is a document or a written contract between the owner of a property (owner) and the tenant who rents it.
It defines the terms and conditions on the basis of which the property is leased, such as address, nature and size, i.e. description of the property, monthly rental, deposit, purpose of the use of the property, whether commercial or residential activities and duration. In the event of a dispute over the property between the landlord and the tenant, the tenancy agreement acts as evidence. Terms and conditions can be negotiated, but after signing and also, it is mandatory for the landlord and tenant. Even the terms of the termination of the agreement are mentioned. Why is the lease only for 11 months? If your rental document is not registered with a validity of more than one year, it will not be used as evidence in court in the event of a dispute. With this one, a heavy penalty is also imposed if the registration of the rental document does not take place. The lease agreement is also known as a lease agreement and is a written contract between the owner of a property (the owner) and the tenant who accepts it as a rental. The agreement defines the conditions on which the property is leased, for example.B.: description of the property (address, type and size), monthly rent, deposit, purpose for which the property can be used (residential or commercial building), and duration of the contract.