Lease Deed Format

This lease deed is designed for leasing or renting of commercial property. Lease deed is a legal document which lays out the prescribed terms and conditions under which the property is leased out. Lease deed must contain information about the lessor, lessee, tenure of lease, lease payments payable and other terms to be followed by the lessee and lessor during the lease term. Though the relationship between the land lord and the tenant is cordial most of the time, it is good to have a written rental agreement in place if the relationship turns sour or becomes fraught with complaints and misunderstandings.

Execution of Lease Deed

This lease deed format can be used by the lessor or lessee for leasing of commercial property. It is signed by the lessee and lessor to indicate agreement to the conditions placed by the lessor during the lease terms. It is a legal document having force of law which may be referenced by courts in the event of a disagreement. The lease deed must be printed on a Non-Judicial Stamp Paper. The value of the non-judicial stamp paper or stamp duty payable on the lease agreement would depend on the State and the value of the lease payable as per the lease agreement. Lease deeds can also be registered at a Sub-Registrar Office having jurisdiction over the premises to be leased. Two copies of the lease deed are usually executed, with each party retaining one of the original copies.

Lease Deed vs Rental Agreement

Based on the term and tenure of the agreement, the document can be termed as a lease deed or rental agreement. Lease deeds and rental agreements are treated differently under the Laws in force in India.
Lease Deed
Lease deeds are agreements entered for letting out of property for more than 12 months. Lease deeds have to abide by strict rent control laws that are mostly favorable to the tenants. Further, rental control laws currently prevent the landlords from overcharging the tenants and protect the tenants from sudden or unfair eviction. Also, the right to ownership of the property gets transferred from the landlords to the tenants in case of a lease agreements, making it harder for the landlord to vacate a tenant. Hence, most landlords do not prefer to enter into registered lease deeds that are over 12 months.

Rental Agreement

Rental agreements on the other hand are entered into for a period of 11 months, with an option to renew the agreement at the expiration of the agreement. As a rental agreement that is 11 months long is just a license for the tenant to occupy the premises for a short duration, rent control laws do not apply. Further, rental agreements that are 11 months long allow the landlord to take more measures in case of eviction of tenant from the property. Hence, most landlords prefer to enter into a rental agreement that is 11 months long, with an option to renew at the end of the agreement period.

Notice to Vacate – For Tenants

A notice to vacate is a legal document giving written notice to the landlord, indicating the intent of the tenant to vacate a rental premises on a specific date. A notice to vacate can also be given by the landlord to the tenant, putting in writing the landlord’s intent to get vacant possession of the rental property at a certain date, as per the rental/lease agreement. It is important to provide the notice to vacate in writing to the landlord or the tenant to ensure legal validity, in case of dispute.
Who can use this notice to vacate format?
The notice to vacate format can be used by the tenant of a leased or rental property, putting on notice the Landlord the tenant’s intention to vacate the premises as per the rental agreement. The tenant of the property can sign the document and send the letter through registered post or hand deliver the letter and obtain the receipt acknowledgement of the landlord. A written and acknowledged notice to vacate letter can be used as evidence in the court of law, in case of dispute relating to the rental of the property.

Providing Notice to Vacate

Notice to vacate can be printed on a plain white paper and signed by the tenant. It is best to send the document through registered post. However, it can also be hand delivered or sent through email. In case it is sent through email or hand delivered, it is important to obtain an acknowledgement for receipt.
On receiving a notice to vacate from a tenant, the landlord can agree to the request or suggest an alternative. In case an alternate date for vacating the premises is proposed by the Landlord, then it must include landlord proposed date of vacating of premises along with any other terms and conditions.

Rental Agreement Format

A rental agreement is a legal document which lays out the prescribed terms and conditions under which the rented property is leased out that is to be followed between the land lord and the tenant. Though the relationship between the land lord and the tenant is cordial most of the time, it is good to have a written rental agreement in place if the relationship turns sour or becomes fraught with complaints and misunderstandings.

Executing a Rental Agreement

This rental agreement or lease deed format can be used by the lessor or lessee of a residential property. It is signed by the lessee and lessor to indicate agreement to the conditions placed by the lessor. It is a legal document having force of law which may be referenced by courts in the event of a disagreement. The rental agreement must be printed on a Non-Judicial Stamp Paper with a value of Rs.100/- or more. The rental agreement is usually signed on payment of deposit for the rental property between the lessor and the lessee. Two copies of the document are usually executed, with each party retaining one of the original copies.

Terms of Rental Agreement

One of the most common features while entering into a property rental transaction in India is the prevalence of the 11 month rental agreement or license agreements. A period of 11 months is preferred by most landlords while entering into property rentals, because there are two types of agreements that deal with property rental in India, lease agreement and leave & license agreement.

Lease Agreement

Rental agreements that are over 12 months have to abide by strict rent control laws that are mostly favorable to the tenants.The rental control laws currently prevent the landlords from overcharging the tenants and protect the tenants from sudden or unfair eviction. Also, the right to ownership of the property gets transferred from the landlords to the tenants in case of a lease agreements, making it harder for the landlord to vacate a tenant. Hence, Landlords do not prefer to enter into rental agreements that are over 12 months.

Rental Agreement or License Agreement

Rental agreement or license agreements on the other hand are entered into for a period of 11 months, with an option to renew the agreement at the expiration of the agreement. As a rental agreement that is 11 months long is just a license for the tenant to occupy the premises for a short duration. Hence, rent control laws do not apply in most States. Further, rental agreements that are 11 months long allow the landlord more measures to take in case of eviction of tenant from the property. Hence, most landlords prefer to enter into a rental agreement that is 11 months long, with an option to renew at the end of the agreement period.