Leases entered into under the provisions of the Indian Easements Act, 1882 as vacation and licence agreements for a period of 11 months are not valid under the Rent Control Acts. Rent control laws, which vary from state to state, have all leases entered into for a period of at least one year in their jurisdiction. These archaic laws, widely implemented around the world after World War II, set out strict rules that make renting difficult, especially for the owner. Landlords who rent their premises under these laws will have great difficulty revising rents and evicting tenants. To avoid paying these fees, many landlords and tenants mutually agree not to register contracts. If you want to register a lease, tenants and landlords can agree to share the costs. In order to avoid paying a stamp duty of Rs 2,500 at the time of contract registration, the owner-tenant duo resorts to signing a lease for a period of one month less than one year. In this way, they sign the agreement and save it on Rs 100 graduated stamp paper. If the agreement includes a deposit, add more than Rs100 and Rs1,100 as a registration fee, bringing the total cost to Rs6,240. This does not apply to fees due to lawyers or other intermediaries for all documents. In Uttar Pradesh, for example, stamp duty on leases is four percent of the annual rent plus deposit, while registration fees are two percent of rental deposit. If the rental period is extended to one year or more, the parties involved in the transaction will have to pay stamp duty and registration fees. Under section 17 of the Registration Act 1908, the registration of leases of immovable property is mandatory from year to year or for a period exceeding or reserving an annual rent.
This article therefore applies to leases with a term of one year, which significantly increases the cost of leasing. In such cases, the tenant must bear the stamp duty and registration fees. Ajay Aggarwal, a resident of Shastri Nagar, recently got a tenant for his replacement two-room apartment. Among other things, he informed the new occupant of the apartment that the house must be vacated in 11 months, because the lease will expire after that. In Haryana, stamp duty on leases varies between 1.5 and three percent of the average annual rent, depending on the rental period mentioned in the document. The registration fee varies between Rs 1,500 and Rs 16,000, depending on the rental amount. Sample of an 11-month contract required for the rental of a house Case II: There may be another situation where the signed agreement lasts three years and the rent increases by 10% per year. .