Rent agreements: why 11 months avoids registration, and what the Model Tenancy Act changes on deposits

Rules and rates as of 12 October 2026.

Almost every rent agreement in urban India runs for 11 months. Few people who sign one know why, and fewer know that the rules on deposits, notice and overstaying depend on which state the flat is in. This explainer covers three things: what the Registration Act actually requires, what the Model Tenancy Act (MTA) changes where a state has adopted it, and what the deposit arithmetic looks like on a ₹30,000-a-month flat.

Why 11 months: the registration line

Section 17(1)(d) of the Registration Act, 1908 makes registration compulsory for "leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent". An agreement for 11 months is not for a term exceeding one year, so under the central Act it does not have to be registered. Registration means presenting the document to the sub-registrar and paying the state's fees, so skipping it saves both sides time and money.

That is the whole logic of the 11-month format. It is not a rule that leases must be 11 months; it is a way to stay under the one-year line. Renewing year after year with a fresh 11-month document keeps each agreement under the line, but it also means neither side has a long, enforceable term.

The cost of skipping registration shows up in section 49. A document that section 17 requires to be registered, but which was not, cannot "affect any immovable property comprised therein" and cannot be received as evidence of the transaction. The proviso allows it in only two ways: as evidence of a contract in a suit for specific performance, or as evidence of a collateral transaction. So if you sign a three-year lease and do not register it, you cannot rely on that three-year term in a dispute. Section 23 gives four months from the date a document is signed to present it for registration.

Maharashtra is the big exception

In Maharashtra the 11-month trick does not avoid registration. Section 55(1) of the Maharashtra Rent Control Act, 1999 says that any agreement for leave and licence or letting of premises made after the Act commenced "shall be in writing and shall be registered under the Registration Act, 1908", whatever its length. Section 55(2) puts the duty to register on the landlord. If there is no written, registered agreement, the tenant's version of the terms prevails unless proved otherwise. Section 55(3) makes breach punishable with up to three months' imprisonment, a fine of up to ₹5,000, or both. A separate provision, section 24, makes a licensee who overstays after the licence expires liable for damages at double the licence fee.

So a Mumbai or Pune renter on an 11-month leave and licence agreement still needs it registered, and the burden of doing so is on the owner.

What the Model Tenancy Act is, and is not

The Union Cabinet approved the Model Tenancy Act on 2 June 2021 and circulated it to states and Union Territories to adopt, either by passing a new law or by amending their existing rent laws. Land and rent are state subjects, so the MTA has no force anywhere by itself. It only applies in a state that has passed its own law based on it, and only in the form that state enacted.

Which states have done so is not easy to pin down from official sources. In a Press Information Bureau release of 25 July 2022, the Housing Ministry said Andhra Pradesh, Tamil Nadu, Uttar Pradesh and Assam had revised their tenancy laws in line with the MTA. We have not found a later official list. Tamil Nadu's law, for example, dates from 2017 and so predates the 2021 model. For any other state, check the state's own Act before assuming the MTA applies.

As published by the ministry, the MTA's main provisions are:

• Written agreement, reported to a Rent Authority. No premises may be let except by a written agreement, which landlord and tenant must jointly intimate to a Rent Authority (section 4). The ministry's draft model rules set the deadline at two months from signing, filed online.
• Security deposit cap. Section 11 caps the deposit at two months' rent for residential premises and six months' for non-residential, refundable when the landlord takes back vacant possession, less any amount the tenant owes.
• No eviction mid-term. A tenant cannot be evicted during the agreed term except as agreed in writing or on grounds set out in the Act, decided by a Rent Court (section 21).
• Overstaying is expensive. A tenant who stays after the tenancy ends pays twice the monthly rent for the first two months and four times after that (section 23).
• Notice to leave. If the agreement is silent, the tenant must give at least one month's notice before vacating (section 29).
• Separate forums. A Rent Authority, Rent Court and Rent Tribunal handle disputes instead of the civil courts.

Under the MTA model, intimation to the Rent Authority is a different step from registration under the Registration Act. A state's version may treat them differently, so read your state's law.

How Tamil Nadu's version differs

Tamil Nadu's Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017 shows how a state law can depart from the model. Section 4 requires every tenancy to be in writing and registered with the Rent Authority. Section 11(1) caps the deposit at three months' rent, not two, and only "save an agreement to the contrary". Section 9(2) requires the landlord to give three months' written notice before revised rent becomes due, unless the agreement says otherwise. Section 29(2) sets a one-month default notice for a tenant leaving, and section 23 entitles the landlord to double the monthly rent from a tenant who overstays. Section 21(2)(a), as amended, lets a landlord seek possession where the parties failed to enter into the agreement required by section 4(2).

Worked example: deposit on a ₹30,000 flat

Take an illustrative flat at ₹30,000 a month. The deposit ceiling is rent multiplied by the cap in months.

Deposit cap = monthly rent × months allowed

• MTA model, residential: ₹30,000 × 2 = ₹60,000
• Tamil Nadu 2017 Act, unless agreed otherwise: ₹30,000 × 3 = ₹90,000
• A six-month demand, for comparison: ₹30,000 × 6 = ₹1,80,000. Under an MTA-based law with a two-month cap, ₹1,80,000 − ₹60,000 = ₹1,20,000 of that would be above the ceiling.

Overstay under the MTA model: staying three months past the end date costs ₹30,000 × 2 × 2 months = ₹1,20,000 for the first two months, plus ₹30,000 × 4 = ₹1,20,000 for the third, a total of ₹2,40,000, against ₹90,000 at the normal rent.

Rule	Registration Act (all states)	Maharashtra	MTA model	Tamil Nadu 2017 Act
Must the agreement be registered?	Only if over one year, year-to-year or yearly rent	Yes, every leave and licence or letting	Intimation to Rent Authority within two months	Registration with Rent Authority
Deposit cap on ₹30,000 rent	None	None in s.55	2 months: ₹60,000	3 months: ₹90,000 (unless agreed)
Overstay	Not covered	Double licence fee (s.24)	2× rent for 2 months, then 4×	Double rent (s.23)
Tenant's default notice	Not covered	Not covered here	At least one month	At least one month

What this means at signing

An 11-month agreement is legal and common, but it is a choice to stay outside registration, not a protection. If you want a longer term to be enforceable, it has to be registered. In Maharashtra every agreement must be registered regardless of length. In a state with an MTA-based law, the deposit cap, notice periods and overstay penalties come from that state's Act, which may differ from the model. Stamp duty is set separately by each state's stamp law, which this piece does not cover; check your state's registration department portal. For a disputed deposit or an eviction notice, a lawyer who practises rent matters in your city can tell you which forum applies.