What are the repercussions of prepping a rental agreement extending 11-months?

Shilpa Shilpa
Answered on December 31,2019

Monetary impact

This will make both parties pay stamp duty and registration charges additionally. In consonance with Section 17 of the Registration Act, 1908, it becomes necessary to register the rent agreement (of more than one year) with the local authorities. Generally, it is the tenants that have to bear the additional renting cost by cause of stamp duty and registration charges.

Legal repercussions

Apart from monetary strain, there is the legal onus to look upon as well. First of all, an unregistered rent agreement of more than a year's validity is not admissible in the court as a piece of evidence if any dispute arises in the future.

Apart from this, a fat penalty is also levied if the registration of a rent agreement (with a term equal or more than one year) is not done.