Every one of us is aware that the
rental agreements are made for 11 months only. Have you wondered why these 11
months’ time frame required? Have you even asked yourself what is the actual
need for the agreement? The foremost requisite for the rental agreement is to
keep the track of the interest of both parties: the tenant and landlord.
Rent Agreement
The rent agreement also known as a lease agreement
is the written contract between the landlord (property owner) and the tenant
who takes it on rent. The contract defines the terms and conditions based on
which the property is let-out such as the property description (like address,
size and type), monthly rent, security deposit, purpose for which the property
is to be used (whether commercial or residential) and finally the duration of
the contract. The terms and conditions are negotiable prior to signing as it
binds on both, the tenant and property owner. It
also describes the situations under which the agreement can be dismissed.
Why 11 Months?
As per the understanding, most rent contracts are
signed for 11 months which acts as an evidence, so that they can avoid stamp
duty and other charges. As per the Registration Act 1908, the registration of a
lease agreement is obligatory, if the leasing period is more than 12 months.
A rental agreement comprises the obligations
and accountabilities of all the parties concerned. A good rental agreement should exclusively
indicate the
names of the parties residing in the premises and evidently mention the date of
the rental time that contains the tenure of occupancy. Precise dates from which
date to which the lease of the agreement would be effective have to be
mentioned here. Some agreements also go an extra step and mention the mutual
duties of all the occupants towards each other and the landlord too. The more comprehensive a rental
agreement is
the better probabilities of decreasing liability of the parties and also having
a rock-solid legal support.
Objective for Making 11-Month
Agreement
In case the rental agreement is commenced for a
time-frame of a year (12 months) or more, it needs to be registered. Therefore
to avoid the lengthy process of registering the contract, many people enter
into 11 months agreements which are the cusp between having the agreement
documented and having a manuscript that is recognized by the law.
Thus in order to evade any issues such as denial to evacuate
the house when asked or violating the signed rules and regulation, rent
agreement is a very vital deed. All you need to do is to stopover the property
registrar office, pay the stamp duty on the term of the lease and register the
lease.
Join RE/MAX, The world's largest & fastest Growing Real Estate Network.
