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Commercial Lease Deed

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Overview

All about Format of lease deed one must know

This lease deed has been prepared for the purpose of renting commercial properties. It primarily is a legal document that puts certain norms as per which the concerned property is put for lease. There must be thorough detail regarding lessor, lease, duration of lease, amounts of lease that can be paid, and other aspects to be taken in to account during the term of the lease. In general, the relation between tenant and the property owner is cooperative in most occasions. But, it is wise to prepare agreement in written form, to avoid adverse occasions if any kind of misunderstanding surfaces or the relationships get affected.

How Lease Deeds proceed?

This format for lease deed can be taken into account by the lessor or lessee when it comes to leasing commercial properties. This is acknowledged by the lessee as well as lessor to signify agreement to the norms put by the lessor when the lease terms appear. This is a legal document containing force of law that might be taken into account by courts in those occasions when any disagreement occurs. It is essential for lease deed to get printed over a non-judicial stamp paper.

The cost of the non-judicial stamp paper or stamp duty that can be paid on the lease accord would rely upon the State, as well as the worth of the lease that can be paid according to agreement of lease. One can register the lease deeds at a sub-registrar office as well as having jurisdiction over the properties that have to be put on lease. In general, a couple of copies of lease deed are, in general, are executed, along with each party having one of the original.

Lease Deed vs. Rental Agreement

According to the term and duration of the agreement, the document can be called a lease deed or an agreement for rental. Both these are given different treatments as per laws in force in India.

Lease Deed

Lease deeds basically are the agreements made in order to put the property out for a duration of more than 12 months. It is essential for lease deeds to stick to the rigorous rent control norms that are primarily suitable for the tenants. Additionally, rental control regulations at present avoid property owners from charging additional amounts to the tenants and save them from unprecedented or unlawful eviction. At the same time, the authorization to ownership of the concerned property gets shifted from the landlord to the tenant if lease agreement is made, turning it tough for the landlord to remove a tenant out. Thus, in general, the landlords don’t like keeping register lease deeds that are more than 12 months.

Rental Agreement 

Rental agreements on the other side are made for a period of around 11 months, having an option of renewing the agreement when the agreement gets expired. From the perspective of rental agreement, a period of 11 months is simply a license for the tenant to capture the property for a limited time, when rent control regulations are not applied. Additionally, rental agreements beyond 11 months let the landlords go for additional measures if eviction of the tenant occurs. Thus landlords in most cases opt for going into rental accord that goes for 11 months having renewal option at termination of duration.

Document Required

  • Name and address of all parties
  • Detail of Property
  • Any other specific terms

Time Lines

  • (3 to 7 Days)
  • Purchase the Service
  • Upload / send the Documents
  • Discussion with expert
  • Preparation of Draft
  • Confirmation to client

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