Lease deed
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Lease Deed
All You Need To Know
What is a Lease Deed?
A Lease Deed (also called a Lease Agreement) is a legal contract between a landlord (lessor) and a tenant (lessee) for leasing a property for a fixed period and rent. It clearly defines the rights, duties, and obligations of both parties.
This agreement typically includes details like the rent amount, payment schedule, duration of the lease, security deposit, termination clauses, and maintenance responsibilities. Having a registered lease deed protects both landlord and tenant from future disputes.
As per the Registration Act, 1908, a lease deed for more than 11 months must be compulsorily registered with the sub-registrar’s office. An unregistered agreement may not be enforceable in case of disputes.
Why Choose EbizFiling?
At EbizFiling, we provide end-to-end support in drafting, reviewing, and registering lease deeds. Our experts prepare agreements that are legally valid, customized, and compliant with Indian property laws.
We assist with clause drafting, stamp duty calculation, and registration to ensure your lease agreement stands strong in case of disputes.
To know more on this connect with our Compliance Manager at +91 96432 03209 or email us at info@ebizfiling.com for a free consultation.
Lease Deed Charges
Choose Your Package
ESSENTIAL
₹ 1999/-
(All Inclusive)
- Class 3 DSC - MCA, Income-tax and GST purpose (duration 2 years)
ULTIMATE
₹ 3799/-
(All Inclusive)
- DSC For use in DGFT/Tenders (2 Years)
Benefits of a Lease Deed
Points to make your decision easy
Legal Protection
Defines rights and responsibilities, avoiding misunderstandings.
Clear Terms
Covers rent, security deposit, and renewal terms in writing.
Dispute Prevention
Helps prevent conflicts between landlord and tenant.
Court Enforceable
A registered lease deed can be used as legal proof in disputes.
Tax Benefits
Proper lease agreements may help in tax deductions for rent.
Credibility
Strengthens trust between landlord and tenant with written assurance.
Documents Required for Lease Deed
Documents for Lease Deed
- Identity proof of landlord and tenant (PAN, Aadhaar, etc.)
- Proof of property ownership (sale deed, tax receipt, etc.)
- Passport-size photos of both parties
- Rent details, security deposit, and lease terms
- Electricity bill or utility proof of property
- Stamp paper of appropriate value
How Does Lease Deed Drafting Work?
5 Easy Steps
1
Gather Information
2
Draft the Deed
3
Finalize Agreement
4
Pay Charges
5
Register the deed
FAQs on Lease Deed
Get answers to all your queries
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What is the difference between a lease deed and a rent agreement?
A lease deed is usually for long-term arrangements (more than 11 months), while a rent agreement is generally short-term. Lease deeds also carry more legal weight when registered.
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Is registration of a lease deed mandatory?
Yes, if the lease period is more than 11 months, registration with the sub-registrar is compulsory under law.
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What happens if the lease deed is not registered?
An unregistered lease deed may not be valid in court. It could cause disputes regarding tenancy rights, rent, or eviction.
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Who pays stamp duty for a lease deed?
Generally, the tenant bears the stamp duty and registration charges, but it can also be shared if both parties agree.
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Can a lease deed be terminated before expiry?
Yes, if both parties agree, or if conditions like default in rent or misuse of property are mentioned in the agreement.
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Is notarization required for lease deeds?
Notarization is optional but adds authenticity. Registration is mandatory for long-term leases above 11 months.
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Can a lease deed be renewed?
Yes, the agreement can include a renewal clause, or a fresh lease deed can be made when the term ends.
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Does lease deed drafting differ for commercial property?
Yes, commercial leases include additional clauses like lock-in periods, escalation of rent, and business-specific terms.
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Is a witness required for lease deed registration?
Yes, at least two witnesses must sign the lease deed at the time of registration.
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What is a “Lessor” and a “Lessee”?
The Lessor is the owner of the property (the landlord). The Lessee is the person who rents the property (the tenant)
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What is a security deposit?
It’s a refundable amount of money paid by the tenant to the landlord at the beginning of the lease to cover any damage or unpaid rent.
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What is a “lock-in” period?
It’s a specific time during which neither the landlord nor the tenant can end the lease agreement. It is common in commercial leases.
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What details are included in a lease deed?
A good lease deed includes the property address, the monthly rent, the duration of the lease, rules for using the property, and responsibilities for repairs.
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What is a Force Majeure clause?
This clause protects both parties from unforeseen events (like a natural disaster) that might make it impossible to fulfill the terms of the agreement.
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Can the rent be increased during the lease period?
This depends on what the lease deed says. A rent escalation clause specifies if and when the rent can be increased.
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How is a dispute resolved if there is one?
The deed can include a dispute resolution clause, which might suggest arbitration or taking the matter to court.
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Do I need a lawyer to draft a lease deed?
While you can draft it yourself, it is highly recommended to get a lawyer’s help to ensure all clauses are legally sound and protect your interests.
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What is “possession” of the property?
This refers to the tenant getting physical control and use of the property as stated in the lease deed. The deed should clearly mention when the possession is handed over.
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What is a “leasehold” property?
This is a property where a person owns the right to use it for a fixed period, but not the land itself. For example, a 99-year lease on a plot of land.
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What is an inventory list in a lease deed?
This is an itemized list of all the furniture and fixtures present in the property when the tenant moves in, to avoid any disputes later.
