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What is the difference between lease deed and lease agreement?

  • Writer: lead India
    lead India
  • Aug 7, 2023
  • 3 min read

A lease deed is a written agreement that outlines all the terms and circumstances, such as the rent that must be paid and the security deposit that must be made, between the landlord, also known as the lessor, and the tenant, also known as the lessee. When a piece of property is rented out for an extended period of time, a lease deed is often necessary. In the event that the lease term is longer than 11 months, a deed must be registered.


What is included in the lease deed?

The following are some of the crucial clauses and information that must be included in a lease deed:

  • The lease document contains information on the property, such as the area, location, address, structure, furniture, and furnishings, if any are offered.

  • Lease terms and conditions, including the length of the lease, its legality, and its provision for renewal.

  • The amount owed for rent, maintenance, and the security deposit from the renter. It is also necessary to specify other significant clauses, such as interest and penalties for late payments. It should also provide information on monthly payments the renter must make, such as those for utilities like electricity and water.

  • The lease deed should include provisions for termination of the lease as well as other grounds for termination of the agreement, such as breach of the deed, use of the property for illegal purposes, or nonpayment of rent.

Lease agreement and lease deeds differ from each other.

An agreement to lease often provides the basic terms of the lease, such as its duration, the amount of rent due, its right to renewal, etc., but a lease deed also includes specifics about how the lease will be carried out on a daily basis.


Documents needed for the registration of a lease

A lease agreement must be registered in order to safeguard both landlords and renters from any legal issues. By going to the sub-registrar's office, one can register a lease. It should be noted that registration must be completed at least four months before the deed's expiration date. Then a new lease document has to be written.

  • Identity documentation for both the landlord and renter, such as an Aadhaar card, a driver's license, a passport, etc.

  • Address verification from both parties is required for the approved signature.

  • Passport-sized color pictures of each party's approved signature.

  • If the property is a business one, the firm's PAN card and company seal or stamp.

  • The original documentation proving possession or title to the property.

  • Property records, such as the Index II or the tax receipt for the rented property.

  • Map of the leased-out property's route

Is the registration of lease deeds required?

The Registration Act of 1908 mandates that any property being leased for more than 11 months for residential, commercial, agricultural, hereditary allowance, or fishing purposes be registered. Except for Jammu and Kashmir, all states must abide by the legislation. There is no need to register for a lease contract that is just 11 months long.


Why are lease deeds 99 years long?

The builder typically receives the development rights to the site through a 99-year lease from the development authority. This indicates that whoever acquires a leasehold property will possess it for 99 years before the landowner regains it. The transfer of land and its uses are governed by long-term leases. Given that it will cover the lessee's lifetime and protect the lessor's ownership, this period is regarded as a safe interval option.


A lease deed may be terminated by mutual agreement between the landlord and tenant or by violation of contract, in which case the other party may do so by serving notice in accordance with the deed's or the state's notice requirements. Non-payment of rent, utilizing the property for unlawful purposes, and subletting it without consent are all reasons for terminating a lease arrangement.


A lease deed is a crucial legal document that spells out the terms and conditions of the rental agreement between the landlord and the tenant and guarantees that the deal is enforceable and legally binding. It is crucial that both parties carefully read the terms and conditions to prevent misunderstandings or problems. It is crucial to make sure the lease document is thorough and addresses every facet of the arrangement.


Lead India provides internet data, legal services, and free legal advice online. Ask a legal question and talk to a lawyer is the best course of action in this situation.


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