Deeds

Lease Deed

A Lease Deed is a legal instrument that creates and governs a lease of immovable property. It records the transfer of a right to enjoy the property for a specific time, in exchange for a price paid or promised to the transferor.

This deed is executed between a lessor and a lessee. It establishes the terms of the tenancy, including the duration, rent, and the respective rights and liabilities of the parties.

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Governing law
Transfer of Property Act 1882 (ss.105, 106, 107, 108, 111) + Registration Act 1908 (s.17) + Indian Stamp Act 1899
Sections
s. 105s. 106s. 107s. 108s. 111

When this is the right filing

  • To create a lease of immovable property for a term exceeding one year.
  • To create a lease from year to year or one that reserves a yearly rent.
  • When a registered instrument is required to confer a valid leasehold interest on the lessee.
  • When the parties intend to create a leasehold interest, not a permissive licence.
  • Do not use this deed for an 11-month leave-and-licence arrangement, which is a different instrument used to avoid compulsory registration.

What the court looks for

  • Proof of compulsory registration under Section 107 of the Transfer of Property Act and Section 17(1)(d) of the Registration Act, 1908.
  • Proper attestation by at least two witnesses, each providing their name, parentage, and address.
  • A clear and unambiguous description of the demised property in the schedule.
  • Definiteness in the lease term, rent payable, and the covenants governing the relationship.
  • Due stamping as per the ad valorem rates prescribed by the applicable State Stamp Act.

The structure the court expects

The components of the filed format, in the order they appear. LexPilot fills every one of them from your facts and papers.

  1. 1Recitals
  2. 2Now this deed of lease witnesseth as follows
  3. 3And the lessor doth hereby covenant with the lessee as follows
  4. 4Further terms
  5. 5Schedule of the property
  6. 6Testimonium
  7. 7Witnesses
How it opens
WHEREAS the Lessor is the absolute and lawful owner, seized and possessed of and otherwise well and sufficiently entitled to all that property bearing [property description], admeasuring [area], situated at [property address], more particularly described in the SCHEDULE hereunder written and hereinafter referred to as the "Demised Premises", having acquired the same by virtue of [lessor title] dated [title doc…

Bracketed items are filled from your case.

Frequently asked questions

Is registration of a lease deed always compulsory?

Registration is compulsory for a lease of immovable property from year to year, for any term exceeding one year, or which reserves a yearly rent. An unregistered deed in these cases is inadmissible in evidence and does not create a valid leasehold interest.

What is the difference between a lease deed and a leave-and-licence agreement?

A lease deed creates an interest in the property and transfers a right to enjoy it, while a leave-and-licence agreement grants only a personal, revocable permission to occupy without creating any estate or interest. An 11-month leave-and-licence is commonly used to avoid the requirement of compulsory registration applicable to leases.

What are the essential covenants that must be included in a lease deed?

The deed should include the lessor's covenant for quiet enjoyment under Section 108(c) of the Transfer of Property Act. It must also clearly define the obligations for rent payment, repairs, maintenance, subletting, and the grounds for determination of the lease under Section 111.

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