Have you ever wondered why your landlord wants you to sign an 11-month lease? Why 11 months finally, why not do it just for the year? What`s the big problem, it`s only a matter of months, right? If a lease is set for a period of 12 months or more, it must be registered, and to avoid the lengthy process of registering the contract, most people opt for 11-month contracts, which are the threshold between the registration of the contract and a legally recognized document. As already mentioned, a lease sets the number of clauses such as the description of the property, the amount of rent, the deposit and so on. It shall also mention the circumstances in which the contract may be terminated. It can be said that a contract originally concluded to protect the interests of both parties can also be used as evidence in the subsequent dispute. Thanks for the explanation, I have doubts – Rented an apartment 1 BHK @ the rate of 8,000 / month, from 01-Jun-2015 to 30-Apr-2016 for a period of 11 months, and extended for another 11 months from 01-May-2016 to 31-Mar-2017 – No change in rent, now the contract will be extended again for 11 months, from 01-Apr-2017 to 28-Feb-2017 @ the rate of 8,300 / month. Now the question comes to mind, what about 12 months is the owner`s approach correct? The reason for this is that I pay the rent increase two (2) months before the actual start date, i.e. 01-Jun-2016, in this case, the profit of two (2) months of profit goes to the landlord, if the owner`s approach is correct? or will he negotiate with the landlord for the 12 months? To avoid such high fees, tenants and landlords mutually agree that the contract will not be registered. Therefore, most leases are signed for a period of 11 months. In addition, the creation of an 11-month lease gives the landlord the flexibility to determine rent as a prevailing market scenario. In a recent 2014 ruling, the Karnataka High Court said that 11-month agreements can no longer be presented as evidence in court, like any transaction affecting property. Thus, if a dispute arises over ownership and that particular dispute is settled by an 11-month agreement, the agreement cannot be used as evidence in court for all purposes.
The 11-month agreement is currently under scrutiny. It is worth mentioning that these leases are usually concluded in favor of residential and non-commercial properties, since they have a longer rental period and such documents must be registered. In an order debunking the myth of the validity of the 11-month agreement, the court ruled: « By law, leases must be registered and, therefore, such unregistered leases cannot be obtained as evidence of a transaction affecting the property. » When a property is rented for 24 months at a monthly rent of Rs20,000 for the first 12 months and Rs22,000 per month for the following 12 months. The registration fee for this agreement would be: 2% of the average rent for 12 months: Rs5,040, (average monthly rent is rs 21,000, average annual rent is 21000 * 12 and 2% is Rs5,040). One of the best and best ways to make money is to rent a property. If the property is vacant, the landlord can rent it to someone. But the most important thing when renting a property is the lease. In this article, we will explore why the lease is only valid for 11 months and not for 12 months or more. First, let`s understand what the lease is? The lease is also known as a lease. It is a written document or contract between the owner of a property (owner) and the tenant who rents it out. It defines the conditions on the basis of which the property is rented, such as address, type and size, i.e. .