Registration of rent agreement for 11 months for commercial property, if necessary

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This topic contains 1 reply, has 2 voices, and was last updated by Dr. Ashok Dhamija Dr. Ashok Dhamija 6 months, 3 weeks ago.

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  • #3892

    Anonymous
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    Sir, I am an owner of a corner property in Delhi located on the main road. I want to let out the property on rent for commercial use for a period of 11 months. Does such an agreement require registration with the SDM/Sub Registrar’s office? I am told that an agreement less than 1 year is legally valid. Is this true?

  • #3902

    Under Section 17 of the Registration Act, 1908, it is compulsory to register leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent. Further, Section 18 of the said Act lays down that registration of “leases of immovable property for any term not exceeding one year, and leases exempted under Section 17” is optional, i.e., it is not mandatory.

    Similarly, Section 107 of the Transfer of Property Act, 1882, lays down that, “A lease of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument”, and also that,  “All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession”.

    In view of the above legal provisions, it should be clear that lease or rent agreement in respect of an immovable property for a period of 11 months is not mandatory but optional.

    Therefore, such a rent agreement for 11 months, even if it is not registered, it would be legally valid.

         


    Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers.

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