IndiaFilings / Learn / RERA Registration / Property Lease Agreement
Property Lease Agreement

Property Lease Agreement

A property lease agreement is usually made from year-to-year, or for a term exceeding one year and made through a registered instrument. A lease agreement is different from a license agreement which grants right to occupy a property for less than one year. Hence, a license agreement is a right to do or continue to do something in relation to an immovable property; whereas, in a lease agreement, possession of the property is transferred.

Important Parts of Lease Agreement

The following are some of the important parts of a lease agreement:

  • Parties must be of legal age
  • Date of commencement of lease must be mentioned
  • Terms of rent and payment of rent must be mentioned
  • Purpose of the demise
  • Duration of the lease
  • Covenant for renewal

Drafting a Lease Agreement

While drafting a lease agreement, it is good to engage an experienced Lawyer or ensure the following parts of the agreement are drafted properly:

Recitals: Its good to have recitals in a lease agreement. However, recitals are not necessary and material facts can also be mentioned in the operative part.

Rent: Rent is mentioned in the beginning of the rental agreement after the recitals along with maintenance, premium, etc., The mode of payment of rent, due date and TDS deduction details can also be mentioned or later in the agreement.

Operative Part: The operative part of the lease agreement must clearly mention that the lessor is divesting himself or herself of possession of the property to the lessee coming into possession. Words like "the lessor hereby lets, or demises or grants a lease of 2 years with effect from the 23rd day of April, 2016, can be used for this purpose.

Lease Term: The nature of lease, commencement and duration of the lease term must be mentioned clearly.

Payment: The mode of payment of rent, due date and TDS deduction details should be mentioned. The terms should contain words like Rent is payable during the term of the lease, along with details of the due date and apportionment of rent, if any.

Terms: Terms and conditions must be mentioned after the payment details thoroughly. Some of the important terms in a lease agreement are details of payment of taxes, insurance, subletting, maintenance, purpose of lease, termination of lease, terms of lease renewal, etc.,

Residential Rental Agreement Format

Commercial Rental Agreement Format

IndiaFilings
Updated on: May 24th, 2024

Popular Post

Download ePAN Card – Get ePan from NSDL & UTIITSL
80 Small Business Ideas

Starting a small business can be a transformative venture, offering the exciting opportunity...

Nadakacheri – Income Caste Certificate Download Online in Karnataka
TDS Rate Chart for Financial Year 2025-2026 (Assessment Year 2026-2027)

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...

Divorce Rules in India: Everything You Need to Know
How To Download GST Registration Certificate Online?

Goods & Services Tax Certificate is issued to people who are registered under GST...

PAN Card Cancellation Online
Find Complete Details of GST Registration Procedure

GST registration applies to all individuals and entities supplying goods or services in India. GST...

Check Your PF Claim Status Online Using PF Tracking ID
Gift Tax in India: Applicability, Exemptions and Rules

Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...

Check Your PF Claim Status Online Using PF Tracking ID
Old Regime vs New Regime 2025: Which Tax Regime is Better for You?

The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...

Check Your PF Claim Status Online Using PF Tracking ID
What is the minimum turnover for GST?

The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...

Check Your PF Claim Status Online Using PF Tracking ID
How can I check if a trademark is registered?

A trademark search is simply checking if another person or organization does not already own the...

Check Your PF Claim Status Online Using PF Tracking ID
Section 194H of the Income Tax Act: TDS on Commission & Brokerage

Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...

Check Your PF Claim Status Online Using PF Tracking ID
Section 80G Deduction - Income Tax Act

Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...

Check Your PF Claim Status Online Using PF Tracking ID
Crypto Tax in India: Taxation On Cryptocurrency

The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...

Check Your PF Claim Status Online Using PF Tracking ID
Internal Audit Applicability Under Companies Act, 2013

Internal audit applicability is a critical concept for companies in India, impacting various...

Check Your PF Claim Status Online Using PF Tracking ID
Difference between Private and Public Company

In the business world, two main types of companies exist: private company and public company...

Check Your PF Claim Status Online Using PF Tracking ID
New GST Rules for Rent

Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...

Check Your PF Claim Status Online Using PF Tracking ID
GSTR-1 and GSTR-3B Due Date Extension - New Due Dates For January 2025

The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...

Check Your PF Claim Status Online Using PF Tracking ID
Different Depreciation Rates under Companies & Income Tax Act

Depreciation is a key concept in finance and accounting. It helps us manage how the value of...

Check Your PF Claim Status Online Using PF Tracking ID
Form 10IA - Section 80DD Deduction

Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...

Check Your PF Claim Status Online Using PF Tracking ID
GST on Used Cars: New 18% Tax Rate Explained

The Goods and Services Tax (GST) system in India has been a significant reform in the country's...

Check Your PF Claim Status Online Using PF Tracking ID
MSME Registration - Udyam Registration

India's Gross Domestic Product (GDP) benefits significantly from the substantial...

Check Your PF Claim Status Online Using PF Tracking ID
Section 43B(h) - New MSME 45 Days Payment Rule

The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...

Check Your PF Claim Status Online Using PF Tracking ID
Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...