Lease Agreement Drafting

A transfer of a right to enjoy immovable property for a term, in consideration of rent or other value. Section 105 of the Transfer of Property Act, 1882 defines it.

A lease from year to year, for any term exceeding one year, or reserving a yearly rent can be made only by a registered instrument under Section 107, and is compulsorily registrable under Section 17 of the Registration Act.

Precisely to stay under that one-year threshold and avoid compulsory registration and higher stamp duty. It is a lawful and extremely common arrangement — but it has consequences, including that the tenancy must actually be renewed rather than allowed to drift.

Where registration was compulsory, an unregistered instrument cannot be received as evidence of the transaction in the way a registered one can, subject to the limited purposes the law allows. Parties who negotiated a five-year term can find themselves treated as holding something far less secure.

Where the contract does not provide otherwise, Section 106 deems a lease for agricultural or manufacturing purposes to be year to year, terminable on six months’ notice; and a lease for any other purpose to be month to month, terminable on fifteen days’ notice.

Yes. The Transfer of Property (Amendment) Act, 2002 removed the requirement that the notice expire with the end of a year or month of the tenancy. The practical effect is that a tenancy can now be terminated at any time once the notice period has run, rather than only at a month-end or year-end.

The period runs from the date the notice is received, not the date it was sent. That distinction decides a surprising number of eviction disputes, so proof of delivery matters.

Yes. Section 106 applies in the absence of a contract to the contrary. A clearly drafted notice clause generally governs, which is why it should be negotiated rather than left to the default.

A lease transfers an interest in the property and gives exclusive possession; a licence gives permission to use without transferring an interest. The distinction turns on substance rather than the label on the document, and it affects registration, stamp duty and how possession is recovered.

Calling it one does not make it one. Courts look at whether exclusive possession was in fact given and at the real nature of the arrangement. A document labelled licence but operating as a lease will generally be treated as a lease.

Stamp duty on leases is State-specific and usually varies with the rent, the term and the deposit. It should be computed for the State where the property is situated before execution.

It varies enormously by city and property type, and in some States the applicable tenancy law caps it. What matters legally is that the amount, the deductions permitted and the refund timeline are written down.

On the terms the agreement provides. If the agreement is silent, disputes follow. Always specify the refund period, what may be deducted and what cannot.

A period during which neither party — or in practice usually the tenant — may terminate. It protects the landlord’s income and the tenant’s occupation, and it needs to be reciprocal and clearly drafted to be fair.

That depends entirely on the clause. A well-drafted lock-in states the consequence — typically rent for the balance of the period or forfeiture of a defined amount — rather than leaving it to be argued.

Section 108 sets out default rights and liabilities, but the agreement usually allocates them. Distinguish structural repairs from routine maintenance expressly, because that is the most frequent running dispute in a long tenancy.

Only as the agreement provides. An escalation clause with a defined percentage and timing avoids the annual argument.

Only if the agreement permits it. Say so expressly either way, and address assignment and change of control for a company tenant.

GST can apply to the letting of commercial property subject to the applicable law and thresholds; residential letting is treated differently and the position has changed over time. It should be checked for the specific arrangement rather than assumed.

Tax deduction at source on rent applies above prescribed thresholds, with different provisions for different payers. The rate and threshold should be confirmed for the current year.

A model law circulated in 2021 for States and Union Territories to adopt, providing for written agreements, a Rent Authority and defined dispute resolution. It applies only where the State has adopted it, so the position differs across the country.

In several States, yes, and they can significantly restrict rent and eviction for covered premises. Whether a property falls within rent control is a threshold question before drafting.

Through the agreement’s termination mechanism and a valid notice, and then through the court or Rent Authority as applicable. Self-help — changing locks, cutting utilities, removing belongings — is unlawful and usually damages the landlord’s case.

A short agreement downloaded from the internet, with no notice clause, no deposit terms, no repair allocation and no clarity on lock-in. It costs nothing to sign and a great deal to litigate.

We handle title and authority checks, drafting, stamp duty and registration guidance, Sub-Registrar coordination and review of a draft you have been given. Appearance in any dispute is through enrolled advocates.