As a professional, I would write the following article on “why rent agreement is for 11 months only”:
When you look to rent a house or an apartment, you may have noticed that the rental lease agreement is usually for 11 months. However, have you ever wondered why it is not for a full year? Many people believe that the reason behind the 11-month rental agreement is to escape from the legal framework of the Rent Control Act, but that is just a myth. In this article, we will discuss the real reasons why the rental lease agreement is for 11 months only.
1. Stamp Duty:
The Indian Stamp Act, 1899, mandates the payment of stamp duty on any rental agreement. The amount of stamp duty varies from state to state and is calculated based on the rental agreement`s duration. The stamp duty of a rental agreement for a year or more is significantly higher than the stamp duty of an 11-month rental agreement. Therefore, most landlords and tenants opt for an 11-month rental agreement to save on stamp duty.
2. Renewal of Agreement:
Renewing a rental agreement every year can be a tedious process. If both the landlord and the tenant are satisfied with the rental arrangement, they may choose to renew the agreement for another 11 months, rather than for a full year. This allows them to avoid the hassle of renewing the rental agreement every year.
3. Legal Protection:
The landlord is legally required to give the tenant notice before vacating the premises at the end of the rental agreement. If the rental agreement is for a full year, the notice period would be longer. However, with an 11-month rental agreement, it is easier for the landlord to give a notice of vacating the premises.
In some cases, tenants are required to vacate the premises before the end of the rental agreement period. With an 11-month rental agreement, they can do so easily without violating the agreement`s terms. A tenant can terminate the rental agreement by providing notice to the landlord, and both parties can agree on the final termination date. This flexibility allows for smoother and more efficient rental arrangements.
In conclusion, an 11-month rental agreement is a common practice in India and has many benefits for both landlords and tenants. It saves on stamp duty, allows for flexibility, and reduces legal hassles. However, before signing any agreement, it is essential to read the terms and conditions carefully to ensure that you understand the agreement`s specifics.