The consequences you must have are if the lease is renewed for more than 11 months: to avoid payment of these fees, many landlords and tenants agree to each other not to receive registered contracts. If you want to register a rental agreement, tenants and landlords can agree to share their costs. Now let`s see what the financial and legal consequences of signing a lease for an 11-month period are. 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. 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. If you have ever rented a property or lived in a rented house, you must have signed a rental agreement. Have you ever wondered why most leases are valid for 11 months? Often, neither landlords nor tenants nor even real estate agents know why. Let`s see. In accordance with Section 17 of the 1908 Registration Act, leases of more than one year must be registered with local authorities. Both parties pay stamp duty and registration fees. As a general rule, the tenant must pay the additional rental fee.