A Lease Agreement contains a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of a property.
A lease is a legal contract, and thus enforceable by all parties under the contract law of the applicable jurisdiction.
Some specific kinds of leases may have specific clauses required by statute depending upon the property being leased, and/or the jurisdiction in which the agreement was signed or depending upon the residence of the parties.
It is always advisable to get a Lease Deed/ Rent Deed drafted and registered in the Sub - Registrar office to avoid any complication
Common elements of a Lease Deed include:
• Names of the parties of the Lease agreement.
The starting date and duration of the Lease agreement.
• Identifies the specific object (by street address) being leased.
• Provides conditions for renewal or non-renewal.
• Has a specific consideration (a lump sum, or periodic payments) for granting the use of property.
• Has provisions for a security deposit and terms for its return.
• May have a specific list of conditions which are therein described as Default Conditions and specific Remedies.
• May have other specific conditions placed upon the parties such as
1) need to provide insurance for loss
2) restrictive uses
3) which party is responsible for maintenance, etc.
• The Stamp Duty in case of Lease for periods upto 5 years shall be 2% of the average annual rent for one year.
• The Stamp Duty in case of Lease for periods more than 5 years, but upto 10 years shall be3% of the average annual rent for one year.
• In addition to the Stamp Duty, a Registration fee of Rs. 1100/- shall also be payable through a demand draft.
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