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. Its terms and conditions can be negotiated, but once signed, it is mandatory for both the lessor and the tenant. It also sets out the conditions under which the agreement can be terminated. "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. If the tenancy period is exceeded by an additional month, to say 12 months, several laws will come into force, which complicates the procedure for both the tenant and the landlord. To avoid such a situation, the duration of the tenancy is maintained at 11 months, regardless of the period for which the lessor intends to rent his property. This contract will be extended at a later date for a further term. In this way, several complications are avoided by both sides," says Brajesh Mishra, a lawyer at Punjab-Haryana High Court. In the second case, the rent for the first year is 10,000 aff. per month. The rent for the second year is paid to the tune of 11,000 aff.
per month. Finally, the rent for the third and final year is paid to the tune of 12,100 aff. The average of the three years` rent will be the average year`s rent. The average annual rent is therefore 12,100 X 12 Rs. Stamp duty is therefore calculated with a rate of 2% to 1.45,200 Rs, which corresponds to 2,904 Rs plus 100 others for security, bringing the total to 3,004 Rs. If a property is rented for 24 months with a monthly rent of Rs20,000 for the first 12 months and 22,000 Rs. per month for the next 12 months. The registration fee of this agreement would be: 2% of the average rent for 12 months: Rs5.040, (average monthly rent is Rs21,000, average annual rent is 21000 - 12 and 2% is Rs5,040). In an order revealing the myth of the validity of the 11-month contract, the court stated: "The law must register leases and, therefore, such unregistered leases cannot be received as evidence of a transaction concerning the property." Data available with Makaan.com show that 21 percent of all homeowners who listed their properties for rent on the site expect their tenants to stay for at least a year. Why then are leases only signed for 11 months, one month less than one year? If the term of the lease is increased to one year or more, the parties involved in the transaction must pay stamp duty and registration fees. Under Section 17 of the Registration Act, 1908, registration of real estate leases is mandatory from year to year or for a period in excess of or maintaining an annual rent. This section will therefore apply to one-year leases, which will significantly increase rental costs.
In such cases, the tenant must bear stamp duty and registration fees. Therefore, a tenancy agreement is the documentation of contractual terms agreed by the landlord and tenant. This is why it acts as evidence when a dispute arises between the landlord and the tenant over the property. Today, the majority of companies in Delhi and Noida require a lease. Therefore, extending the duration beyond this time would have many effects. From a monetary point of view, an extension of more than 11 months would not be cost-effective and, from a legal point of view, the whole process will be slow.