Property law | Legal format

Long-Term Land Lease Agreement Format in India

A practical sample agreement for granting a long-term lease of land, including a proposed 99-year term, title verification, possession, construction rights, taxes, registration and remedies for default.

Long-term land lease: legal overview

A long-term land arrangement is commonly used where the lessee intends to construct and use a building or other structure on land owned by the lessor. For legal accuracy, a document that merely records an undertaking to execute a future lease should be distinguished from the final instrument that actually creates the lease.

Important: The sample below is drafted as an agreement to grant a lease and expressly provides for execution of a later lease deed. For a proposed 99-year lease, the final lease instrument must ordinarily be registered. Stamp duty, registration fees, land-use permissions and local tenancy or land laws depend on the State or Union Territory where the property is situated.
RegistrationA lease from year to year, for more than one year, or reserving yearly rent is compulsorily registrable under central registration law, subject to applicable local provisions.
Stamp dutyDuty and valuation can vary substantially by State/UT and by lease term, premium, rent and property value. Check the current local law before execution.
Title & approvalsVerify ownership, encumbrances, acquisition/reservation status, land use and permissions before the final lease is signed.
ConstructionThe agreement should specify whether permanent construction is permitted and make it subject to sanctioned plans and applicable development rules.

Sample Agreement for a Long-Term Lease of Land

This specimen should be adapted to the property, applicable State/UT law, stamp duty rules, registration requirements, land-use restrictions and the parties' commercial terms.

AGREEMENT TO GRANT LONG-TERM LEASE OF LAND

This Agreement is made at ______________ on this _____ day of ______________, 20__.

BETWEEN

Mr./Ms./M/s ____________________________, son/daughter/wife of / a company or entity having its address at ________________________________________, hereinafter referred to as the "Lessor" (which expression shall, unless repugnant to the context, include the Lessor's heirs, legal representatives, successors and permitted assigns), of the First Part;

AND

Mr./Ms./M/s ____________________________, son/daughter/wife of / a company or entity having its address at ________________________________________, hereinafter referred to as the "Lessee" (which expression shall, unless repugnant to the context, include the Lessee's heirs, legal representatives, successors and permitted assigns), of the Second Part.

Recitals

A. The Lessor represents that the Lessor is lawfully entitled to the parcel of land situated at ____________________________ and more particularly described in the Schedule below ("the Land").

B. The Lessee has requested a long-term lease of the Land for the purpose of constructing and/or using a building or other permitted structure for ____________________________, subject to applicable law and approvals.

C. The parties have agreed to execute a formal registered lease deed on the following principal terms.

Terms and Conditions

1. Proposed term and rent. Subject to fulfilment of the conditions in this Agreement, the Lessor agrees to grant and the Lessee agrees to take a lease of the Land for 99 years, or such other lawful period as the parties finally agree, commencing from the date specified in the registered lease deed. The rent shall be Rs. ______________ per year, payable ______________, together with any agreed escalation, premium or deposit stated in the final lease deed.

2. Taxes and outgoings after commencement. From the commencement date of the final lease, taxes, assessments, charges, user fees and other outgoings relating to occupation, use and any building constructed on the Land shall be borne by the party specified in the final lease deed, subject to any liability that applicable law places on a particular person.

3. Marketable title. The Lessor shall establish lawful and marketable title to the Land and disclose existing mortgages, charges, litigation, acquisition proceedings, easements, restrictions and other material encumbrances or claims.

4. Title documents. The Lessor shall produce or make available the relevant title deeds, revenue or municipal records, approved plans and other documents reasonably required by the Lessee or the Lessee's advocate for title verification.

5. Requisitions on title. The Lessee may raise reasonable requisitions or objections concerning title within four weeks after receiving the relevant title documents, or within such other period agreed in writing. Failure to raise an objection shall not validate fraud, concealment or a defect that could not reasonably have been discovered.

6. Execution and registration of lease deed. Upon satisfactory verification of title and fulfilment of applicable conditions, the parties shall execute the final lease deed containing the agreed term, rent, permitted use, construction rights, assignment/subletting provisions, termination terms and other covenants. Where registration is compulsory, the parties shall present the instrument for registration in accordance with applicable law.

7. Assignment, sublease and surrender. The final lease deed shall state whether and to what extent the Lessee may assign, mortgage, license or sublet the leasehold interest. On expiry or lawful determination of the lease, possession and treatment of buildings, fixtures and improvements shall be governed by the final lease deed and applicable law. Any provision requiring surrender of improvements without compensation should be expressly negotiated and legally reviewed.

8. Completion. The parties shall endeavour to complete title verification, required approvals and execution of the final lease deed within three months from this Agreement, or within any extended period agreed in writing.

9. Possession. Vacant and peaceful possession of the Land shall be delivered on the date and subject to the conditions stated in the final lease deed. Until delivery, the Lessor shall take reasonable steps to prevent any new encroachment or unauthorized occupation.

10. Pre-completion outgoings. Unless otherwise agreed and subject to applicable law, taxes and outgoings relating to the Land up to the agreed completion date shall be borne by the Lessor.

11. Stamp duty and registration expenses. Stamp duty, surcharge, registration fee and incidental registration expenses shall be borne in the manner agreed by the parties, subject to the law in force in the State or Union Territory where the Land is situated. Each party shall bear its own professional fees unless otherwise agreed.

12. Land status and governmental action. The Lessor represents, to the best of the Lessor's knowledge after reasonable verification, that all material notices concerning acquisition, requisition, reservation, land-use restriction or governmental action affecting the Land have been disclosed to the Lessee.

13. Construction and permitted use. The Lessee may construct only such building or structures as are expressly permitted under the final lease deed and applicable land-use, planning, environmental, municipal, fire, safety and other laws. Construction shall be undertaken only after obtaining all approvals required by the competent authorities.

14. No present demise. Nothing in this Agreement shall by itself be construed as creating a present lease or transferring possession or any leasehold interest in the Land. The leasehold interest is intended to arise under the final lease deed, subject to its execution, stamping and registration as required by law.

15. Permissions and NOCs. Any permission, consent, no-objection certificate or approval legally required for execution or registration of the proposed lease shall be obtained by the party on whom that obligation falls under law or, where law permits, as expressly agreed between the parties.

16. Default and remedies. If either party, despite fulfilment of the agreed conditions, wrongfully fails to complete the transaction, the non-defaulting party may give not less than fifteen days' written notice and pursue cancellation, refund, compensation, specific performance or other relief available under the contract and applicable law.

IN WITNESS WHEREOF, the parties have executed this Agreement on the date and place first written above.

Schedule of the Land

All that piece and parcel of land situated at ____________________________, Survey/Khasra/Plot No. ______________, admeasuring ______________, within ____________________________, and bounded as follows:

North: ______________
South: ______________
East: ______________
West: ______________

LESSOR
Name: __________________
WITNESS 1
Name & address: __________________
LESSEE
Name: __________________
WITNESS 2
Name & address: __________________

Applicable law for long-term land leases in India

Transfer of Property Act, 1882

Section 107 governs how leases are made. A lease from year to year, for a term exceeding one year, or reserving yearly rent is made by a registered instrument. Where a lease is made by a registered instrument, it is executed by both lessor and lessee.

Section 108 sets out default rights and liabilities of lessor and lessee where the contract or local usage does not provide otherwise, including disclosure of material defects, delivery of possession, quiet enjoyment, payment of rent, proper use and restoration of possession.

Official text: Transfer of Property Act, 1882 - India Code

Registration Act, 1908

Section 17(1)(d) requires compulsory registration of leases of immovable property from year to year, for any term exceeding one year, or reserving yearly rent, subject to statutory exceptions or exemptions. Section 49 addresses the effect of non-registration of documents that are required to be registered.

Official text: Registration Act, 1908 - India Code

Stamp law and State/UT rules

A lease instrument must be properly stamped. Stamp duty rates, valuation methods, concessions and procedural requirements may differ because State/UT amendments and local stamp laws apply. Do not rely on a single national rate for a 99-year lease.

Official text: Indian Stamp Act, 1899 - India Code

Specific Relief Act, 1963

Where a party fails to perform an agreement concerning a lease, remedies may include specific performance or compensation depending on the contract, the facts and the statutory requirements. The Specific Relief Act includes provisions governing enforcement of contracts and rights of a lessee where title is imperfect.

Official text: Specific Relief Act, 1963 - India Code

Frequently asked questions

Does a 99-year land lease require registration?

Ordinarily, yes. A lease for a term exceeding one year falls within the compulsory-registration framework under the Registration Act, 1908, and Section 107 of the Transfer of Property Act, 1882 requires the lease to be made by a registered instrument, subject to applicable local law.

Is this sample the final 99-year lease deed?

No. It is structured as an agreement under which the parties propose to execute a later lease deed. This distinction avoids treating a preliminary agreement as though it automatically creates the 99-year leasehold interest.

Who pays stamp duty and registration charges?

The answer depends on the applicable State/UT law and the parties' agreement to the extent the law permits allocation of those costs. The amount can depend on the lease term, rent, premium, market value and local amendments.

Legal-use note: This is a general drafting specimen, not a substitute for property-specific legal advice. Long-term leases can be affected by State rent laws, land-revenue and land-reform laws, development-control rules, municipal law, restrictions on agricultural or granted land, authority-specific lease conditions, and tax consequences.