Section 107 of the Transfer of Ownership Act states that “the rental of real estate from one year to the next, or for a period of more than one year, or the booking of an annual rent, can only be done by a registered instrument.” However, in this particular case, the HC contract gave importance to the following paragraph of section 107, which states that “all other land leases may be made either by a registered instrument or by a verbal agreement with the surrender of the property.” Section 49 of the Act also states that a registration document that is not registered “cannot be obtained as evidence of a transaction relating to that property.” The court found that where a document is something that governs the lease only for a period of one year, but it is a written document and not just an oral agreement, that particular document must be registered after the stamp duty payment. Therefore, under Section 49, they become inadmissible in court if they are not registered. 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. “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. When a lease is established for a period of 12 months or more, it must be registered and, therefore, to avoid the lengthy process of registering the contract, most people are passed for 11-month agreements that are the threshold between the registration of the contract and the registration of a legally recognized document. In a recent ruling in 2014, the Karnataka Supreme Court ruled that 11-month agreements can no longer be presented in evidence in court, like any real estate transaction. Therefore, if a property dispute arises and that particular dispute is settled by an 11-month agreement, the agreement cannot be used as evidence by the courts for any purpose. 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. 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. Many people doubt whether an 11-month lease is valid or not. There is no doubt that your document is legal and valid. It is also accepted in the eyes of the law and can therefore be used as evidence. The tenancy agreement (also known as a tenancy agreement) is a legal document signed between the landlord and the tenant. This contract binds both parties and protects their interests. It mentions the general terms and conditions of rental of property and contains information provided by landlords, tenants and property.
It also includes monthly rent, duration, purpose of use of real estate, whether residential or commercial buildings, etc. One of the best and best ways to make money is to rent a property.