A rental agreement with a duration of more than 11 months must be registered in order to make it enforceable in accordance with the Registration Act of India. In order to avoid these formalities, agreements are concluded for a period of 11 months and extended by mutual consensus between the parties concerned. The rental agreement or lease is processed on a stamp document. There are 2 types of rental in India, one is a lease that lasts at least 12 months. This is governed by the rent control laws adopted by the Land Government. The other type is a rental and license agreement with a maximum duration of 11 months, which is not covered by rent control laws. The Registration Act of 1908 makes it compulsory to register a lease if the duration of the tenancy is longer than 11 months. A rental contract is a legal document defining the prescribed conditions for the rental of the leased property to be respected between the contracting authority and the tenant. Although the relationship between the client and the tenant is cordial most of the time, it is good to have a written lease when the relationship becomes furious or marred by complaints and misunderstandings. To reduce costs, tenants and lessors sometimes conclude an oral agreement on the lease and avoid the realization of a lease. Sometimes they also document the agreement and set terms for the rental, but choose not to save the document. This is due to the fact that both parties are responsible for paying a registration fee when a rental agreement is drawn up and registered.
The lessor is also required to declare his rental income as soon as the lease is valid. However, entering into a lease without registration is illegal and could prove risky for both parties, especially in the event of future litigation. Leases longer than 12 months must comply with strict rent control laws, which are most often tenant-friendly. Rent control laws currently prevent landlords from overburdening tenants and protecting tenants from sudden or unfair evictions.. . .