What is a Lease deed?

A Lease deed is an agreement entered into by the landlord and tenant to let
out a commercial property for a longer duration of time. According to Section
17(D) of the Registration Act 1908, writing and registration of a lease deed is
mandatory.

The deed must be printed on non-judicial stamp paper and can be registered at
a sub-registrar office (SRO) administering the leased-out property. Usually, two
copies of the Lease deed are obtained and both parties hold one of the original
copies.

The laws that apply to lease deeds in India include:

- Transfer of Property Act, 1882
- Registration Act, 1908
- Indian Contract Act, 1872
- Various state-specific legislation (ex: The Bombay Stamp Act 1958 now known
as the Maharashtra Stamp Act 1958)

Difference between Rent agreement and Lease deed

The length of the contract determines the difference between a Lease deed
and a Rent agreement. A contract signed for using an immovable property for
about a year is called a Rent agreement. When the period is more than a year,
it is called a Lease deed. This is why rent is often termed as a leave and license
type of contract falling under Section 52 of the Indian Easements Act 1882.

Stamp duty on a Lease deed

Stamp duty on Lease deeds varies from one state to another. Its rate is decided
by the respective state revenue department. For example, the stamp duty on
Lease deeds is Rs 200 in West Bengal. In Maharashtra, 0.25 percent of the total
rent is levied as a Stamp duty.
Lease Deed Details
The lease deed format is a standard proforma for executing a lease deed
between a Lessor and a Lesse. The Lease Deed format contains the details such
as-

 Name of the Lessor

 Name of the Lessee
 Term of Lease
 Norms of Violation
 Terms and Conditions
 Notice Period
 Details of the Property
 Market Value of the Property
 Lease Terms

The following documents are required for lease deed registration:

- Identity proof, such as Aadhaar Card, driving licence, passport, etc., of the landlord and
tenant.

- Address proof of the authorised signatory, from both the parties.

- Passport-sized colour photographs of the authorised signatory, from both the parties.

- Company PAN card and company seal/stamp, if it is a commercial property.

- The original proof/evidence of ownership or title of the property.

- Property documents, such as Index II or tax receipt of the property to be leased.

- Route map of the property leased out.

The aforementioned is a basic outline of the process of drafting a legally competent and
balanced Lease Deed