Lease Deed: Importance, Format, & The Registration Process

What Is A Lease Deed?

A lease deed is an agreement between the tenant and the property owner for a specific time period. 

The agreement includes the rent amount, payment period, and some other parameters mutually agreed by both parties. 

A lease deed states that the tenant will receive the lease rights to utilize the owner’s property for a certain period.

Lease Deed Importance

Lease deed is important because it legally validates the lease agreement between property owner and tenant. 

It is mandatory to register the lease deed at the sub-registrar office if the lease period is more than 12 months.

Lease Deed Registration

When the lease deed exceeds 12 months, a lease agreement is required. A lease deed registration supports the rights of both parties equally. Under the Registration Act, 1908, a lease deed should be registered at the required time. 

The land owner has to lease out the property with proper lease deed registration for a valid proof. However, a lease deed registration is not required if the agreement is for less than 12 months.

 The lease deed registration will specify the rental amount, the amount of security deposit, the lock-in period, and the notice period.  

The lease deed registration is done at the Sub-Registrar of Assurances’s office under whose jurisdiction the property is located. 

Lease Deed Sample

The lease deed works as a proof of certificate between both parties where they have mutually agreed on a lease rent and the period. When the lease agreement is less than 12 months, then a lease deed agreement will be enough for proof.

The lease deed includes the specification on which it is stated that the lessee will keep the leased property in good condition throughout and at the end of the lease period. It also states that both the party will respect the right of each other. 

Check This Lease Deed Sample 

Lease Deed Registration Process

The Registration process is done in the Sub-registrar’s office. You need to visit the nearest office of your property and fill up the form and legally draft a lease deed. 

The information will include the lease amount and the responsibilities of both parties. Submit all documents and pay the registration charge. The registration process would take 4 months to complete.  

You can get the online form, however, you need to submit the same to the sub-registrar’s office by visiting the office physically. 

Lease Deed Registration Format Pdf

There are a few specifications in the Lease Deed that are stated in the registration paper like the duration, the lease amount, security deposit, lock-in time, notice period, and usage.

Check This Lease Deed Registration Format

Lease Deed Format For Lands

When the parties enter into a lease deed agreement for lands, they have to enter into an agreement for the lease. This lease registration agreement includes the following information: 

• Mutual agreement: Here the lessor agrees to demise to the lessee and the lessee agrees on taking the lease of the property stated. The lessee also agrees on providing the lessor with the annual rental lease amount in advance so that no extra deductions are made. 

• About the lease: The lease amount will be exclusive of the amounts like the dues and duties payable, taxes, and assessments stated. 

• Duty of lessor: It is the duty of the lessor to make the land free from any claims or reasonable doubts before providing it to the lessee.

• Documentation: The lessor agrees that they will provide all the required land.  documents to the lessee or their advocate during the time of the lease land agreement. 

• Requisition on the title: The lessee or their advocate will provide the requisition on the title to the lessor or their advocate. 

• Usual covenants: The lessee and the lessor will provide the usual covenants on agreeing that the rights of the lessee will not be restricted.   

• No Objection Certificate: This certificate is important for granting the lease of the land. 

Lease Deed Registration Charges

A lease deed registration fee is Rs 1000 when the property is situated under any municipal corporation area. If the property is located in any rural area then the registration charge will be Rs 500. 

Lease Deed Cancellation Format

The lease cancellation and termination agreement include the following information: 

•  Mutual agreement: The lessee and the lessor agree to set forth the lease agreement. The lessee agrees on leaving the property in good condition as it was handed to them before the lease agreement. 
• Compliance of obligation: This will include the information on the obligation of the termination date, monthly rent, any additional rent, and any utility charges. These charges will be owed under the lease amount. Both the parties will sign the agreement along with the date of signing only after the payment transaction is clear. 
• Signature: Both the parties have to sign the agreement registration which depicts that they are mutually agreeing on the condition. 

Check This Lease Deed Cancellation Format 

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