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Lease Deed- Commercial

{An agreement between owner and tenant for recording terms of a commercial lease}

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A Lease Deed is an agreement which captures details of terms and conditions agreed between the owner of property and tenant for renting of property. It gives the tenant a right to use immovable property for a certain period of time for its business activities in return of monthly rent. The lease outlines the rights and responsibilities of both the owner and tenant during the lease term. In Lease Deed, there is a transfer of interest in property from owner to the tenant and property rights are also created in favour of the tenant.

 

 

Parties in a Lease Deed 

Owner/ Lessor- who gives the property on lease (owner of the property)

Tenant/ Lessee- to whom property is given on rent

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Features of a Lease Deed

  • right to occupy the premises to tenant
  • tenancy rights are created
  • creates an interest in property in favour of tenant
  • transferable
  • usually executed for 11 months
  • compulsory registration if term greater than 11 months
  • rate of stamp duty is lower

Contents of Lease Deed

  • details of parties
  • duration of lease
  • monthly rent & security deposit
  • maintenance and other charges
  • property taxes
  • termination and renewal of lease deed
  • right of sub-letting in case permitted

Difference between Lease Agreement & Leave and License Agreement

Points of difference

Lease

Leave and License

Possession of Property

exclusive possession of property with the tenant

only a permission to tenant to occupy the property

Interest

creates an interest in property in favour of the tenant

no interest in property is created in favour of the tenant

Transferable

transferable

non-transferable

Heritable Rights

creates heritable rights

does not create any heritable rights

Cancellation

non-revocable by landlord

revocable by owner

 

Note :-

  • Draft template will be provided in soft copy
  • Extra charges will apply for customized document