If you are looking into a rent agreement with your landlord/tenant, make sure to keep a note of the below points.
In India, we enter into Leave & Licence agreement for period of 11 months due to following reasons
1) Under Registration Act, 1908, registration of leave & licence agreement entered for a period less than 1 year need not to be registered. It can simply be signed & notarized.
2) Since process of registration is lengthy & hectic, where both the parties have to be physically present before the Registrar, parties prefer to enter into 11 months agreement.
3) If rent agreement is prepared for 11 months, it is not required to pay stamp duty & registration charges.
Due to the above reasons, parties prefer to enter into 11 months agreement.
