Lease & Rent Agreement Services

1. Introduction

A lease or rent agreement is a legal document where the owner (lessor) transfers the right to use immovable property to another (lessee) for rent. It is governed under:

Transfer of Property Act, 1882
Indian Contract Act, 1872
Registration Act, 1908
State-specific Rent Control Acts

2. Definitions and Key Differences

Basis Lease Agreement Rent/License Agreement
Nature of Right Transfer of interest in immovable property Transfer of right to use, not interest
Governing Law Transfer of Property Act Indian Easements Act, 1882
Registration Mandatory if term > 12 months Not mandatory if <12 months
Legal Rights Lessee has legal estate Licensee has mere permission
Termination Through proper legal process Terminates on revocation of license

3. Key Legal Provisions

Section 105, TPA: Definition of Lease
Section 106, TPA: Duration & Termination
Section 108, TPA: Rights and liabilities of parties
Section 17, Reg Act: Compulsory Registration
Section 49, Reg Act: Effect of non-registration

4. Essential Clauses in Agreements

Description of Premises
Rent, Deposit, Duration
Maintenance & Repairs
Subletting, Termination, Usage
Dispute Resolution, Force Majeure

5. Legal Doctrines

Doctrine of Part Performance: Sec. 53A, TPA
Doctrine of Estoppel: No going back after reliance
Nemo dat quod non habet: Cannot transfer more than you own

6. Landmark Judgments

Associated Hotels v. R.N. Kapoor: Lease vs License
Anthony v. K.C. Ittoop: Oral leases & registration
Delta International Ltd. v. Shyam Ganeriwalla

7. Legal Validity & Registration

Term Registration Required? Stamp Duty?
≤ 11 Months No Yes (State Specific)
> 12 Months Yes Yes

8. Commercial vs. Residential Lease

Feature Residential Lease Commercial Lease
Purpose Residence Business
Duration Short (11 months) Long (3–9 years)
Escalation Clause Rare Common (5–10% annually)
Lock-in Period Not mandatory Standard

9. Termination & Eviction

Notice-based termination (Sec. 106, TPA)
Breach of terms or non-payment
Eviction per Rent Control Acts
Court eviction requires due process

10. Professional Services

Drafting and vetting legal agreements
Registration and stamp duty compliance
Legal notices and eviction procedures
Dispute resolution via arbitration or litigation

11. Digital Execution

E-signature under IT Act, 2000 is valid
States like Maharashtra support e-registration
Aadhaar-based authentication used for identity

Need Legal Assistance? Contact Us Today for Customized Lease & Rent Agreement Drafting.