How to draft a perfect lease deed
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How To Draft A Perfect Lease Deed PowerPoint PPT Presentation


A lease deed is an agreement between lessor and lessee. A lease deed should contain all the important commercial and legal points in concise and proper manner. Some of the useful tips while drafting a lease deed have been discussed here.

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How To Draft A Perfect Lease Deed

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How to draft a perfect lease deed

How To Draft A Perfect Lease Deed


How to draft a perfect lease deed

A lease deed is an agreement between lessor and lessee. A lease deed should contain all the important commercial and legal points in concise and proper manner. Some of the useful tips while drafting a lease deed have been discussed here.

In India where the prices of land are so high and as result there is sharp increase in number of lease transactions in commercial as well as residential segment. Lease has become the way of life for modern Indian economy especially metro cities. Whether it a residential lease or commercial lease, there are certain commercial and legal consideration which needs to be kept in mind while negotiating a lease deed.


How to draft a perfect lease deed

Both parties (owner and tenant) should take some precautions so that lease agreement is properly drafted and avoiding any confrontation in future. We are mentioning some of the important points which needs to be discussed, finalized and should form part of a complete draft of lease deed as under:

(i) Parties & Property: Parties description should be properly given including Name of Lessor and Lessee, Name of Father/Husband of both the parties, address of parties etc. Similarly, complete address of the property will make the lease deed perfect. Secondly if rental amount is big then detailed description of properly as per the concerned title documents (i.e. sale deed or conveyance deed etc) should be appropriately given.


How to draft a perfect lease deed

(ii) Commencement, Periodicity, Lock in Period & Renewal: Mention the date on which rent will start, period of the lease deed becomes important factor to calculate the rent amount for the first month and clears also the legal point whether a lease need to be registered as per the provisions of Registration Act, 1908 or not. In case there is lock in period then it should be properly mentioned. How the lease will be renewed and whether there will be any increment in rent on rent should be clearly mentioned.

(iii) Rent, Security & Expenses: The rental amount and the expenses should be appropriately disclosed in the agreement. Further it should clearly state whether this rental amount is inclusive or exclusive of charges like water, electricity, maintenance etc.


How to draft a perfect lease deed

Further the amount of security deposit (if any) should be clearly mentioned including the fact whether security deposit amount will be interest bearing or free from interest and how it will be refunded.

(iv) Termination: Lease should specify the minimum notice period required for terminating a lease deed. Further under what circumstances, a lease may be terminated should be cleared mentioned in the lease deed.


How to draft a perfect lease deed

In addition to above the agreement should clearly provide regarding sub-let the concerned property, dispute resolution mechanism (whether arbitration or through court directly), facts finding regarding title of the property, and in case furniture and fixture are also provided by the landlord then the details thereof and the responsibility of the parties to bear the expenses in case damages is caused to such furniture and fixture should be clearly mentioned. Kindly note that the points discussed above are indicative only. For additional information regarding drafting of contract of service, please visit this website.


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