Friendly Realtors

+91 9901555100/ 7022252980

19/8, Davis Road, Cooke Town,

Bangalore โ€“ 560084

9 am to 8 pm

Monday to Saturday

Rent agreement: Why is it for 11 months and not 12 months?

๐Ÿท๏ธ If a rental agreement is set out for a period of 12 months or more it needs to be registered in the sub-registrarโ€™s office by paying the Stamp Duty charges

๐Ÿท๏ธ To avoid the lengthy Process & Cost, most people go in for an 11-month agreement which is the difference between having the agreement “Registered” and having a document that is recognised by law in the form of “E-Stamp Paper”

๐Ÿ“ ๐—ช๐—ต๐—ฎ๐˜ ๐——๐—ผ๐—ฒ๐˜€ ๐—Ÿ๐—ฎ๐˜„ ๐—ฆ๐—ฝ๐—ฒ๐—ฎ๐—ธ ๐—ฎ๐—ฏ๐—ผ๐˜‚๐˜ ๐˜๐—ต๐—ถ๐˜€ ๐—ฆ๐˜‚๐—ฏ๐—ท๐—ฒ๐—ฐ๐˜?
๐Ÿ“ Section 107 of the Transfer of Property Act says:
โžก๏ธ โ€œA lease of immovable property from year to year, or for any term exceeding one year or reserving a yearly rent, can be made only by a registered instrument.โ€
โžก๏ธ โ€œAll other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession.โ€

๐Ÿ“ Section 49 of the Act also says:
โžก๏ธ Unless a document requiring registration is not registered, then it cannot โ€œbe received as evidence of any transaction affecting such property.โ€

Disclaimer: Sharing my view as Realtor, feel free to share your thoughts