Why Is a Rent Agreement Made for 11 Months? The Rule Explained

Because a lease of more than one year must be registered, and a lease of one year or less need not be. Eleven months keeps a safe margin below the line. That is the whole reason, and it has limits.

The law

• Registration Act, 1908, section 17(1)(d): leases of immovable property from year to year, for any term exceeding one year, or reserving a yearly rent must be registered.
• Transfer of Property Act, 1882, section 107: such a lease can be made only by a registered instrument.
• Registration Act, section 18: leases for a term not exceeding one year may be registered, but it is optional.

Why landlords and tenants prefer it

• No Sub-Registrar visit in States where short leases need no registration.
• Lower stamp duty in many States, since duty often depends on term and rent.
• Easy renewal and rent revision every 11 months.

The limits

• Maharashtra: section 55 of the Maharashtra Rent Control Act, 1999 requires every leave and licence or letting agreement to be in writing and registered, whatever the term.
• States that adopt the Model Tenancy Act, 2021 require written agreements and intimation to a Rent Authority.
• Stamp duty is still payable on an 11 month agreement; unstamped agreements are not admissible in evidence until duty and penalty are paid.
• Back-to-back 11 month agreements do not change the legal character of a long occupation; disputes are decided on facts.

Please note: these templates are for general information and are not legal advice. Laws, stamp duty, notarisation and registration rules vary by State. Consult an advocate for your case. This is an independent website, not a law firm and not a government office.