Leases over a year must be registered
Summary
Under India's Registration Act 1908, leases longer than one year must be registered. That is why 11-month agreements are common for homes. Multi-year factory and warehouse leases should be registered with stamp duty paid; rates differ by state.
What to check
- Leases longer than a year must be registered at the sub-registrar's office to be enforceable.
- An unregistered long lease is hard to rely on in a dispute.
- Homes often use 11-month agreements to avoid registration; multi-year factory and warehouse leases should be registered.
- Stamp duty and registration fees apply and vary by state, so agree who pays before signing.