Tenancy Agreement

Dear Friends,

I'm on HSMP and facing a very strange situation here related to my tenancy agreement. My brother came to an agreement with one of his friends. That person owed some money to my brother. He made an agreement with my brother offering some money in cash and for some giving his flat to my name for fix 30 months tenancy. Exact wording of that agreement is here as below.

1. He (my bro's friend) is willing to grant an assured shortheld tenancy at your (my brother) request to Mr. my name at a notional rate of £1,100 per calendar month.
2. Mr my name will not be charged rent during his period of occupancy. His occupancy will be governed by an assured shorthold tenancy with our client. The term of the tenancy will be initially six months and our client will on completion of the tenancy agreement provide Mr. my name with a letter confirming that he will not, except in the circumstances stated below, terminate the tenancy agreement before the expiration of 30 months from the date of the Tenancy agreement.

Now he (my bro's friend) has prepared a tenancy agreement and asking me to sign it keeping in mind my bro is not here. Exact wordings are as below.

The Term
For a fixed period of 30 months from August 2005 to February 2008.

The Rent
At a rent of £1,100 per month payable every month by equal payments in advance, first payment due on August 2005 and every month thereafter on the same day in each month.

Method of payment
In kind

Now the questions:
Does he need to mention that rent is payable every month to him and secondly what does legally in kind means? Is it ok to sign? will it be ok to give this tenancy agreement while applying for my FLR?

Your help will be much appreciated.

Many thanks,

Max