A rental agreement outlines the essential requirements for renting homes in India, covering everything from e-stamping and rent control regulations to security deposits and notarization. In India, there is no legally mandated minimum duration of rent agreement. However, the lease duration significantly affects the legal requirements for registration and stamp duty.
What is the Minimum Period of a Lease?
Here are a few points you must know.
Less than 12 months (License Agreement): Typically, 11 months to avoid mandatory registration. Governed by the Indian Contract Act, 1872, rather than rent control laws. Often not registered, only notarized.
12 months or more (Lease Agreement): Falls under the Transfer of Property Act, 1882. Mandatory registration at the Sub-Registrar’s office. Requires stamp duty payment as per state laws. Avoids registration costs and stamp duty. Provides flexibility for both landlord and tenant. Easier to modify or terminate with minimal legal formalities.
Some states impose rent control laws on longer leases, affecting rent hikes and eviction terms. Commercial leases often have a 3 to 9-year duration, with periodic rent revisions. I hope you understand what is minimum duration of lease agreement.
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What is Minimum Duration of Lease Agreement?
ashish
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2 months
2025-03-26T16:53:32+00:00 2025-03-29T21:59:36+00:00Comment
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