What is a Lease Deed?

This lease deed is designed for leasing or renting of commercial property. Lease deed is a legal document which lays out the prescribed terms and conditions under which the property is leased out. Lease deed must contain information about the lessor, lessee, tenure of lease, lease payments payable and other terms to be followed by the lessee and lessor during the lease term. Though the relationship between the land lord and the tenant is cordial most of the time, it is good to have a written rental agreement in place if the relationship turns sour or becomes fraught with complaints and misunderstandings.

Execution of Lease Deed

This lease deed format can be used by the lessor or lessee for leasing of commercial property. It is signed by the lessee and lessor to indicate agreement to the conditions placed by the lessor during the lease terms. It is a legal document having force of law which may be referenced by courts in the event of a disagreement. The lease deed must be printed on a Non-Judicial Stamp Paper. The value of the non-judicial stamp paper or stamp duty payable on the lease agreement would depend on the State and the value of the lease payable as per the lease agreement. Lease deeds can also be registered at a Sub-Registrar Office having jurisdiction over the premises to be leased. Two copies of the lease deed are usually executed, with each party retaining one of the original copies.

Documents Required for Registration of Lease Deed in India

For registering a residential lease deed basic documents are required:
1. Lease deed.
2. Stamp paper.
3. Receipt of registration fees.

For registering a commercial lease deed, the following documents are required:
1. Power of attorney/board resolution on company letterhead.
2. ID proof like Aadhaar Card, Driving Licence, Passport, etc.
3. Address Proof of the authorized signatory.
4. Passports sized colored photographs of the authorized signatory.
5. Company PAN card.
6. Company seal/stamp of authorized signatory.

Key Contents of a Lease Deed in India

The most important provisions that must be included in every lease deed in India are as follows:
1. Description of Property: The lease deed must contain the description of the property like the area, location, address, structure, furniture and fittings, etc.
2. Duration: The lease deed must clearly state the time period for which the lease deed will be valid. This provision can also include the information relating to the renewal of the lease deed if both the parties wish to continue and renew their contract.
3. Rent, Maintenance, and Security: The amount of rent, mode of payment, due dates, security deposit to be paid, interest on delay in payment, etc. must be clarified in the lease deed. The lease deed must also include the details and responsibility for paying any maintenance charges, utility bills, society charges, etc.
4. Termination of Lease: The lease deed must state the reasons for which the lease agreement can be terminated. This may include breach of lease deed, use of the property for illegal acts, failure to pay rent, nuisance by the tenant, etc.
5. Subletting: The lease deed must state whether the tenant is allowed to sublet the property or not.
6. Dispute Resolution: The agreement must mention the manner in which the legal disputes between the landlord and tenant arising out of breach of the lease deed will be dealt with. This may include any ADR processes like Arbitration.
7. Applicable Laws: This provision states the laws which will be applicable over the lessor and lessee in case of a dispute and which court will have jurisdiction to deal with such matters.