In this article we are providing you format of lease deed which will help you to understand the lease and its condition.
What is Lease Deed ?
A lease deed in India is a legal document that outlines the terms and conditions under which a property owner (lessor) agrees to give another party (lessee) the right to use and occupy a property for a specific period of time in exchange for rent or other considerations. A lease deed is a legally binding agreement that defines the rights and responsibilities of both the lessor and the lessee during the lease term.
Key components of a lease deed in India typically include:
Parties Involved: The lease deed identifies the lessor (property owner) and the lessee (tenant) with their respective details.
Property Details: The lease deed includes a detailed description of the property being leased, including its location, size, boundaries, and any specific features.
Lease Term: The document specifies the duration of the lease, including the start and end dates of the lease period.
Rent and Payment Terms: The lease deed outlines the amount of rent to be paid by the lessee, the frequency of payment (monthly, quarterly, etc.), and the due dates. It may also include information about any security deposit or advance rent.
Maintenance and Repairs: The responsibilities of maintenance and repairs of the property may be outlined in the lease deed, including who is responsible for what types of repairs.
Use of the Property: The lease deed specifies the purpose for which the property will be used by the lessee. It might include restrictions on subletting or using the property for specific purposes.
Renewal and Termination: The conditions for renewing or terminating the lease are usually detailed in the lease deed. This includes any notice periods required for termination or renewal.
Rights and Responsibilities: The document outlines the rights and responsibilities of both parties, such as the lessor’s right to inspect the property and the lessee’s obligation to maintain the property.
Legal Provisions: The lease deed may include clauses related to legal compliance, such as the lessee’s responsibility to adhere to local laws and regulations.
Signatures and Witnesses: The lease deed is typically signed by both parties, along with the signatures of witnesses.
Lease deeds in India are often required to be executed on non-judicial stamp paper of certain value, depending on the state’s stamp duty laws. The stamp duty is a state subject, so the rates may vary from state to state. Additionally, lease deeds for longer durations (usually more than 11 months) need to be registered with the local sub-registrar’s office to make them legally enforceable and admissible as evidence in case of disputes.
It’s important to note that laws and regulations can change over time, so it’s advisable to consult with legal professionals or local authorities to ensure that you are using the correct format and complying with the latest legal requirements when drafting or entering into a lease deed in India.
Format of Lease Deed
Lease Deed
THIS INDENTURE made at _________ on this ________ day of _________ 20_____ BETWEEN ABC, of ________, Indian Inhabitant, having address at
________________________________________, hereinafter referred to as “THE LESSOR” (which expression shall unless it be repugnant to the context or meaning thereof be deemed to mean and include his/her heirs, executors, administrators and assigns) of the ONE PART; AND XYZ, of , Indian Inhabitant, having address at
, hereinafter referred to as “THE LESSEE” (which expression shall unless it be repugnant to the context or meaning thereof be deemed to mean and include his/her heirs, executors, administrators and permitted assigns) of the OTHER PART.
WHEREAS
(a) The Lessor is seized and possessed of or otherwise well and sufficiently entitled to the plot of land (“the demised plot”) bearing Survey No. ___________, admeasuring approximately _______ sq.yds. equivalent to ___________ sq.mts. or thereabouts situated at
_______________________________ and more particularly described in the Schedule hereunder written and delineated on the plan annexed hereto and shown with red colour boundary line thereon.
- The Lessor has agreed to demise unto the Lessee the demised plot together with the right to construct a building or buildings and/or structures thereon for the period and at the yearly rent and upon the terms and conditions recorded herein.
- The Lessor being the absolute owner of the demised plot is executing the present Indenture in favour of the Lessee.
format of lease deed
NOW THIS INDENTURE WITNESSETH AS FOLLOWS
- In consideration of the yearly rent and Lessee’s covenants hereinafter reserved and contained the Lessor doth hereby demises unto the Lessee the demised plot bearing Survey No.______, admeasuring________approximately_______ sq. yds. equivalent to___________ sq.mts. or thereabout situated at ___________________and______________more particularly described in the Schedule hereunder written together with the right to construct a building or buildings and/or structures thereon and delineated by red coloured boundary line on the plan annexed hereto TO HOLD unto the Lessee the demised plot hereby demised from the day of ___________for a term of 999 years (nine hundred and ninety-nine years) (“the said term”) yielding and paying the yearly rent of Rs. __________ (Rupees __________________ only), and which rent shall be payable by the Lessee to the Lessor on or before the ________day of ___________ every year in advance.The Lessee doth hereby expressly covenants with the Lessor as under:—
That
he/she will during the said term regularly pay to the Lessor the aforesaid yearly rent without any deduction and in all the circumstances in the manner aforesaid. In the event of any delay, the Lessee shall pay interest on the arrears at the rate of ________% per annum from the due date till the date of actual payment. Such interest shall be recovered as if the same formed a part of the yearly rent and will carry compound interest at the same rate with six monthly rests. The provision of interest shall be without prejudice to the other rights and remedies of the Lessor.
That
he/she will also pay and discharge all the rates, taxes charges, duties, burdens, assessments, outgoings and impositions whatsoever payable now or hereafter during the said term to become payable now or hereafter during the said term assessed, charged and/ or imposed upon the demised plot or any part thereof or upon the building or buildings and/or structures to be hereafter erected whether payable by the landlord, tenant or occupier in respect thereof respectively.
That
the Lessee will at his/her own efforts, expenses and costs be entitled to construct and complete upon the demised plot a new building or buildings and/or structure or structures with all requisite and proper sewers, drains and other conveniences thereto in accordance with the prevailing laws.
That
he/she will in executing the works as aforesaid and at all times during the continuance of this demise observe and conform to all such rules and regulations of the Municipal Corporation and other Government and Semi-Government Authorities as may be in force for the time being relating to the building or buildings and/or structures to be constructed on the demised plot.
That the Lessee will at his/her own expense and cost maintain and keep in good repair the drains, sewers and gullies leading from the said building or buildings and/or structures to be constructed on the demised plot in accordance with the Municipal Act and the bye-laws thereunder for the time being in force without requiring any notice in that behalf from the Lessor.
That
the Lessee will not do, cause or suffer to be done upon the demised plot any act which shall be a nuisance or annoyance, or be injurious or offensive to the owners or tenants of any neighbouring premises.
(g) That the Lessee hereby indemnifies and agrees to keep indemnified the Lessor against all suits, claims and/or demands in respect of the demised plot.
That
the Lessee will at the expiration or sooner determination of the said term quietly and peacefully surrender and deliver to the Lessor possession of the said demised plot together with all the building or buildings and/or structures which shall have been constructed/erected thereon during the said term and all drains and appurtenances thereto in such good and substantial repair and condition and so maintained, saved and cleansed and in all respects in such state and condition as shall be consistent with the due performance of the several covenants hereinbefore contained (reasonable wear and tear excepted).
The Lessee
shall not assign, transfer or part with the possession of the demised plot or any part thereof to any person without previously obtaining the written consent of the Lessor which consent shall not be unreasonably withheld. PROVIDED FURTHER that after a building or building/s and/or structures to be constructed on the demised plot as aforestated is completed, the Lessee shall be entitled without such consent to sell and assign the constructed premises to third parties for the exclusive benefit of the Lessee.
However, once the development of the demised plot is complete, the Lessee shall be entitled to execute a sub-Lease in respect of the same for the remaining period along with the Conveyance of the structure/s or building/s to be constructed on the demised plot to the Co-operative Housing Society or a limited company or any association of persons which may be formed by the Purchasers of the constructed premises on the demised plot.
PROVIDED ALWAYS AND IT IS AGREED
and declared that if the yearly rent hereby reserved or any part thereof shall be in arrears, for a space of thirty days after the same shall have become due whether the same shall have been legally or formally demanded or not or if and whenever there shall be a breach or non-performance or non-observance by the Lessee of any of the Covenants, conditions or agreements herein contained, it shall be lawful for the Lessor to re-enter upon the demised plot or any part thereof in the name of the whole and immediately thereupon this demise and all rights of the Lessee hereunder shall stand absolutely determined but without prejudice to any right or remedy of the Lessor already accrued and then subsisting
PROVIDED HOWEVER
prior to such re-entry in respect of any breach of any covenant, notice in writing must be given to the Lessee intimating such breach of a covenant and if the Lessee fails to make good or rectify such breach within two months from the date of service of such notice, the Lessor shall be entitled to re-enter upon the demised plot or any part thereof in the name of the whole and thereafter the Lease shall stand determined provided always that such re-entry shall be without prejudice to any other right of action or remedy of the Lessor in respect of any antecedent breach of any of the covenants on the part of the Lessee. The term for payment of interest on the arrears of rent shall not prejudice or affect the right of re-entry herein contained.
The Lessor doth hereby covenants with the Lessee that the Lessee on paying the rent hereinabove reserved and performing and observing all the covenants, conditions and agreements on the part of the Lessee hereinbefore contained shall be entitled to peaceably hold, occupy and enjoy the demised plot during the said term without any interruption by the Lessor or any person claiming by, for or under him.
THE SCHEDULE ABOVE REFERRED TO:
(“the demised plot”)
(Give a detailed description of the Plot)
IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed
their respective hands on the day and year first hereinabove written.
SIGNED AND DELIVERED by the )
withinnamed ABC, “THE LESSOR”, ) abovenamed, )
in the presence of …… ) 1.
2.
SIGNED AND DELIVERED by the )
withinnamed XYZ, “THE LESSEE”, ) abovenamed, )
in the presence of …… ) 1.
2.
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