In order to avoid these juicy fees, tenants and landlords agree not to register the contract. As a result, most leases are signed for an 11-month period. In addition, the establishment of an 11-month lease gives the lessor flexibility in determining rent as the dominant market scenario. Now let`s see what the financial and legal consequences of signing a lease for an 11-month period are. Let`s look at it this way. If you are a tenant, your landlord cannot evict you until the end of the rental period simply because you have had an argument. Similarly, the landlord would be within his legal right to dislodge a tenant if he sees them involved in false fights. A tenant would not be able to get away with neglecting their responsibilities if there is a binding agreement. The consequences you must have if the lease is renewed for more than 11 months: To avoid disputes related to disputes between landlords and tenants, the Supreme Court ruled in Anthony v. KC Ittoop and Sons that a landlord cannot dismiss a tenant for at least five years if the tenant has paid the rent regularly in accordance with the agreement between the two parties. However, if the landlord wishes to use the premises for personal use, he can throw the tenant out. Nearly 12 million housing units in the country`s urban areas remain empty, although millions of people, including workers and students, happen to be migrants seeking rental housing, as the data show. According to official figures, of the 37.4 million students who attended regular university courses in 2018/19, about 15 million were migrants.
According to industry estimates, migrant workers in India`s major urban centres will be seven million men by 2023. Section 107 of the Transfer of Ownership Act states that « the rental of real estate from one year to the next, or for a period of more than one year, or the booking of an annual rent, can only be done by a registered instrument. » However, in this particular case, the HC contract gave importance to the following paragraph of section 107, which states that « all other land leases may be made either by a registered instrument or by a verbal agreement with the surrender of the property. » Section 49 of the Act also states that a registration document that is not registered « cannot be obtained as evidence of a transaction relating to that property. » The court found that where a document is something that governs the lease only for a period of one year, but it is a written document and not just an oral agreement, that particular document must be registered after the stamp duty payment. Therefore, under Section 49, they become inadmissible in court if they are not registered. If your rental document is not registered with a validity of more than one year, it will not be used as evidence in court in the event of a dispute.