Office leases are designed for the rental or leasing of commercial real estate. It`s legal. Housing.com has implemented a fully digital and contactless service to create rental contracts. If you want to complete the formalities quickly and without problems, you just need to fill in the details, create the rental agreement online, sign the contract digitally and mark it in seconds by e-stamp. To avoid paying these fees, many landlords and tenants agree not to register contracts. If you want to register a rental agreement, tenants and landlords can agree to share the costs. Data available with Makaan.com shows that 21 percent of landlords who have listed their properties for rent on the site expect their tenants to stay for at least a year. So why are leases usually only signed for a period of 11 months, a month of less than a year? Under the Registration Act 1908, registration of the lease is mandatory if the term of the lease is greater than or equal to 12 months. To skip the long and laborious registration process, rental contracts are usually only established for 11 months.
In order for your agreement to be registered, you must pay stamp duty and registration fees. Here are the consequences you face if the lease is renewed for more than 11 months: If a property is rented for 24 months at a monthly rent of Rs20,000 for the first 12 months and Rs22,000 per month for the following 12 months. The registration fee for this agreement would be: 2% of the average rent for 12 months: Rs5.040, (average monthly rent is Rs21.000, the average annual rent is 21000 *12 and 2% of it is Rs5.040).