Is it Compulsory to register a Lease Deed
As per Section 107 of of Transfer or Property Act a lease of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument. All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession. Where a lease of immovable property is made by a registered instrument, such instrument or, where there are more instruments than one, each such instrument shall be executed by both the lessor and the lessee. That means a Lease deed for less than one year need not be registered.
Sample Format of Lease Deed of Residential House signed by Power of Attorney Holder is given below.
This Lease Deed made at New Delhi on this __ day of ____ 20__ between Mrs. __________, Wife of Mr. _____________, Resident at _____________, Philadelphia, USA, represented through her brother and duly constituted General Attorney Mr. _____________ son of Late Sh. _____________ Resident of _____________ _____________ _____________, vide GPA dated _____________, duly registered with Sub Registrar _____________, New Delhi on _____________ (hereinafter referred to as "The Lessor") which terms shall include their heirs, successors legal representatives and assigns of the One Part.
Mr. _____________, Son of Sh. _____________, resident of _____________ _____________ _____________ , New Delhi, (Permanent Address _____________ _____________ _____________ ), working as Research Staff Member at _____________, New Delhi (hereinafter referred to as "the Lessee") which team shall include his legal representatives and assigns of the Other Part.
A. The Lessor is the lawful owner and is well seized and possessed of or
otherwise well and sufficiently entitled to all the Flat _____________
_____________ , New Delhi, admeasuring _____________. sq mtr., Comprising of __
Bedroom, Drawing Room, Dining Room, __ Kitchen, __ Bathrooms and __ Balconies &
area of Scooter Grage ____ sq. mtrs & area of staircase ___ sq. mtrs on each
floor, (hereinafter called "The Said Flat") fully desired in the schedule
B. The Lessor has agreed to let out the said flat and the Lessee has agreed to take the said flat on rent from the Lessor on the following terms. Conditions and covenants"
C. The Lessee shall be responsible for payment of maintenance charges as per bills to the BSES or concerned electricity company, PNG towards gas usages charges, Delhi Jal board against water usage charges any other civic authorities as may be demanded from time to time till vocation and furnish the last paid bills to the Lessor at the times of vocation / handing over of the flat"
NOW THIS AGREEMENT OF LEASE WITNESSETH AS UNDER:-
1. That in consideration of the rent received herein and of the due observance and performance of the terms" conditions and covenants "observed " performed and fulfilled by the Lessor and the Lessee , the Lessor do hereby grant unto and in favour of Lessee " the Lease of the Flat _____________ _____________ _____________ , New Delhi, hereinafter referred to as "The Said Flat" fully described in the schedule written hereunder, at a monthly rent of Rs._____________/- ( Rupees _____________ _____________ only) per month to be paid by ECS/ Post dated Cheque in advance in favour of Mrs. _____________ by the _th day of each calendar month w.e.f. _____________. If the cheque issued by the Lessee is dishonored due to any reason, a penalty of Rs. _____________/- will be payable to the Lessor against return of cheque and Penalty of Rs. _____________/- per day in addition to the monthly rent will be payable for each day of delay in payment of rent.
2. That this lease is valid for a period of 11 Months effective from 1st _____________ to _____________ 20__. This period of agreement may be extended for further 11 months by mutual consent of both parties.
3. That the Lessee shall use the said flat for Residential purpose only for him and his family and will not use it for professional practice or any other purpose.
4. That Lessee shall handover every month the original copy of the paid bills showing payment of electricity, maintenance, water charges, PNG or any other regular charges paid to the authorities for the records and reference of the Lessor within reasonable period of his payment "The Lessor" shall not be responsible for receipt or payment of bills or disconnection in case of default of payment.
5. That the lessee shall not do or allow to done in the said premises any act contrary to the law. Tenant / Guests shall not disturb any other tenant or neighbor.
6. That the Lessor shall be liable to pay all the taxes , ground rent, house tax, other charges payable to Delhi Municipal Corporation government or any local authority in respect of the said flat.
7. That the parties had originally signed a lease deed on _____________ which was expired on _____________ which was renewed till _____________ and the Lessee had given a security deposit of Rs._____________/- (Rupees _____________ only) i.e, vide Cheque/Online Receipt No. _____________ dated _____________, Drawn On _____________ _____________, as interest free security. The amount will remain with the Lessor and shall be refunded by the Lesser to the Lessee on termination / expiry of this lease after peaceful vacation of the said flat and after deducting any unpaid rent/ dues or bills.
8. That the Lessee agrees to permit the Lessor and his authorized representatives at all times to inspect the demised flat.
9. That the Lessee shall keep and maintain the demised flat in good, proper and tenable condition at his own cost.
10. That the Lessee shall not be at liberty to construct or erect temporary wooden walls or floors and also will not make any structural changes. On termination of the lease the flat will be handed over in its original condition.
11. That the Lessee shall peacefully deliver vacant possession of the said flat to the Lessor at the expiry or earlier termination of this lease, Lessor shall thereafter refund the security deposit after deducting any unpaid dues for utilities & rent.
12. That the Lessor shall grant and ensure, uninterrupted and unhindered ingress to and egress from the said premises at all the times during the terms of the lease and also ensure unhindered and uninterrupted use of common areas main gates, stairs, passage, public utilities etc.
13. That the Lessee shall not assign, sublet or under let or part with the possession of the demised flat or any part thereof for any reason "whatsoever"
14. That before handing over vacant and peaceful possession to the Lessor, the Lessee shall have the right to remove all furniture, fixtures and fittings etc. Installed by him in the said flat to restore the premises to its original conditions reasonable wear and tear excerpted.
15. That the Lessee in addition to the above referred monthly rent and other expenses, pay to different authorities all maintenance charge in proportion to the area covered as determined by the management agency etc.
16. That the Lessee shall be entailed to terminated this lease by giving One (1) months notice in writing to the Lessor or rent in then thereof, any notice sent by registered A/D/Courier/hand delivery at the address of the Lessor shall be deemed to have been duly served for the purpose of this clause. Likewise Lessor shall be entitled to terminate to terminate this leave by giving one months notice to the Lessee in writing at his residential address.
17. That the major repair such as major cracks in walls or any other structural defects in the demised flat shall be the liability and responsibility and responsibility of the Lessor internal repairs including electricity sanitary, plumbing, painting and minor repairs will be done by the Lessee at their own cost.
18. That the lease shall be registered with the office of the Sub-Registrar, New Delhi and expenditure shall be shared equally be Lessor and Lessee.
19. That the Lessee shall abide by all the rules and regulations of the local body / society.
20. That in contradiction of any condition of the Lease deed the Lessee shall be liable for eviction from the said premises.
21. The Lessee shall not induct any third party in the said flat nor he shall allow to assign any of his agreement right to any third parties.
22. That the Lessor have represented to the Lessee that the said flat is free from all encumbrances and Lessor have a clear and undisputed right to the said flat and the Lessor shall keep the Lessee indemnified from all losses & damages that Lessee may suffer because of any defect and/or because of any dispossession from the said flat. Likewise Lessee shall keep the Lessor indemnified against any misuse of the said flat.
23. That if the Lessee fails to handover vacant and peaceful possession of the said flat back to the Lessor after expiry of this lease. The Lessee shall pay a liquidated damage @ Rs._____________/- (Rupees _____________ only) per month, the parties hereby agree with the same to be reasonable and the same shall be paid with 18% interest thereon till vacant peaceful possession of the said flat is restored to the Lessor.
24. That the Lessee shall pay the RWA charges sum of Rs. _____________/- (Rupees Two Thousand Four Hundred only) per year.
25. That any dispute or discrepancies arising out of this agreement shall be subject to the jurisdiction of the courts at Delhi.
SCHEDULE ABOVE REFERRED TO:-
All that Flat No _____________ _____________ _____________, New Delhi, admeasuring _____________ sq. mtr, Comprising of __ Bedroom, Drawing Room, Dining Room, __ Kitchen, __ Bathrooms and __ Balconies, comprising of items described in the Annexure A attached to this agreement.
IN WITHESSES WHEREOF, THE PARTIES HERETO HAVE EXECUTED THESE PRESENTS OF THE
DAY, MONTH AND YEAR ABOVE WRITTEN.
WITNESSES L E S S O R
L E S S E E
Section 107 "Leases how made"
107. A lease of immovable property from year to year, or for any term exceeding
one year, or reserving a yearly rent, can be made only by a registered
All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession.
Where a lease of immovable property is made by a registered instrument, such instrument or, where there are more instruments than one, each such instrument shall be executed by both the lessor and the lessee:
Provided that the State Government may, from time to time, by notification in the Official Gazette, direct that leases of immovable property, other than leases from year to year, or for any term exceeding one year, or reserving a yearly rent, or any class of such leases, may be made by unregistered instrument or by oral agreement without delivery of possession.
Section 108 "Rights and liabilities of lessor and lessee"
108. In the absence of a contract or local usage to the contrary, the lessor and the lessee of immovable property, as against one another, respectively, possess the rights and are subject to the liabilities mentioned in the rules next following or such of them as are applicable to the property leased :-
A. Rights and liabilities of the Lessor
(a) the lessor is bound to disclose to the lessee any material defect in the property, with reference to its intended use, of which the former is and the latter is not aware, and which the latter could not with ordinary care discover;
(b) the lessor is bound, on the lessee's request to put him in possession of the property;
(c) the lessor shall be deemed to contract with the lessee that, if the latter pays the rent reserved by the lease and performs the contract binding on the lessee, he may hold the property during the time limited by the lease without interruption.
The benefit of such contract shall be annexed to and go with the lessee's interest as such, and may be enforced by every person in whom that interest is for the whole or any part thereof from time to time vested.
B. Rights and liabilities of the lessee
(d) if during the continuance of the lease any accession is made to the property, such accession (subject to the law relating to alluvion for the time being in force) shall be deemed to be comprised in the lease;
(e) if by fire, tempest or flood, or violence of any army or of a mob, or other irresistible force, any material part of the property be wholly destroyed or rendered substantially and permanently unfit for the purposes for which it was let, the lease shall, at the option of the lessee, be void :
Provided that, if the injury be occasioned by the wrongful act or default of the lessee, he shall not be entitled to avail himself to the benefit of this provision;
(f) if the lessor neglects to make, within a reasonable time after notice, any repairs which he is bound to make to the property, the lessee may make the same himself, and deduct the expense of such repairs with interest from the rent, or otherwise recover it from the lessor;
(g) if the lessor neglects to make any payment which he is bound to make, and which if not made by him, is recoverable from the lessee or against the property, the lessee may make such payment himself, and deduct it with interest from the rent, or otherwise recover it from the lessor;
(h) the lessee may even after the determination of the lease remove, at any time whilst he is in possession of the property leased but not afterwards, all things which he has attached to the earth : provided he leaves the property in the state in which he received it ;
(i) when a lease of uncertain duration determines by any means except the fault
of the lessee, he or his legal representative is entitled to all the crops
planted or sown by the lessee and growing upon the property when the lease
determines, and to free ingress and egress to gather and carry them;
(j) the lessee may transfer absolutely or by way of mortgage or sub-lease the whole or any part of his interest in the property, and any transferee of such interest or part may again transfer it. The lessee shall not, by reason only of such transfer, cease to be subject to any of the liabilities attaching to the lease;
nothing in this clause shall be deemed to authorize a tenant having an un-transferable right of occupancy, the farmer of an estate in respect of which default has been made in paying revenue, or the lessee of an estate under the management of a Court of Wards, to assign his interest as such tenant, farmer or lessee;
(k) the lessee is bound to disclose to the lessor any fact as to the nature or extent of the interest which the lessee is about to take, of which the lessee is, and the lessor is not, aware, and which materially increases the value of such interest;
(l) the lessee is bound to pay or tender, at the proper time and place, the premium or rent to the lessor or his agent in this behalf;
(m) the lessee is bound to keep, and on the termination of the lease to restore, the property in as good condition as it was in at the time when he was put in possession, subject only to the changes caused by reasonable wear and tear or irresistible force, and to allow the lessor and his agents, at all reasonable times during the term, to enter upon the property and inspect the condition thereof and give or leave notice of any defect in such condition; and, when such defect has been caused by any act of default on the part of the lessee, his servants or agents, he is bound to make it good within three months after such notice has been given or left;
(n) if the lessee becomes aware of any proceeding to recover the property or any part thereof, or of any encroachment made upon, or any interference with, the lessor's rights concerning such property, he is bound to give, with reasonable diligence, notice thereof to the lessor;
(o) the lessee may use the property and its products (if any) as a person of ordinary prudence would use them if they were his own; but he must not use, or permit another to use, the property for a purpose other than that for which it was leased, or fell or sell timber, pull down or damage buildings belonging to the lessor or work mines or quarries not open when the lease was granted, or commit any other act which is destructive or permanently injurious thereto;
(p) he must not, without the lessor's consent, erect on the property any permanent structure, except for agricultural purposes;
(q) on the determination of the lease, the lessee is bound to put the lessor into possession of the property.