Lease Deed

A Lease Deed is a legally binding agreement between a landlord (the lessor) and a tenant (the lessee) that outlines the terms and conditions under which the tenant can occupy and use the1 landlord's property in Delhi for a specified period in exchange for rent. It clearly defines the rights and responsibilities of both parties, helping to avoid future disputes. In Delhi, Lease Deeds are governed by the Transfer of Property Act, 1882 and the Registration Act, 1908.

Key Elements of a Lease Deed:

A comprehensive Lease Deed in Delhi should include the following essential details:

• Details of the Parties: Names, addresses, and other identification details of the lessor and the lessee.

• Description of the Property: A complete and accurate description of the property being leased, including its address, floor number, area, boundaries, and any specific parts of the property being leased (e.g., parking space, common areas).

• Lease Term: The specific duration for which the property is being leased, including the start and end dates.

• Rent: The agreed-upon amount of rent, the frequency of payment (e.g., monthly), the due date for payment, and the mode of payment (e.g., online transfer, cheque).

• Security Deposit: The amount of security deposit paid by the tenant to the landlord, the terms for its refund at the end of the lease, and any conditions under which deductions can be made.

• Maintenance Charges: Details of who is responsible for paying maintenance charges (landlord or tenant), the amount, and the frequency of payment.

• Utilities: Clarification on who is responsible for paying utility bills such as electricity, water, gas, and internet.

• Permitted Use: The purpose for which the property can be used (e.g., residential, commercial, office).

• Restrictions: Any restrictions on the tenant's use of the property (e.g., no pets, no subletting).

• Repairs and Maintenance: Details on who is responsible for different types of repairs and maintenance of the property (structural, electrical, plumbing, etc.).

• Landlord's Right of Entry: Conditions under which the landlord can enter the property for inspection or repairs, usually with prior notice.

• Renewal Clause: If applicable, the terms and conditions for renewing the lease agreement at the end of the initial term.

• Lock-in Period (if any): A period during which neither the landlord nor the tenant can terminate the agreement.

• Termination Clause: The conditions under which either party can terminate the lease agreement before the expiry of the lease term, including notice periods and any penalties.

• Governing Laws and Jurisdiction: Specifying that the lease is governed by the laws of India and the courts in Delhi shall have jurisdiction in case of disputes.

• Signatures: Signatures of both the lessor and the lessee, along with the signatures and details of two witnesses.

• Date and Place of Execution: The date and place where the deed is signed.

• Schedule of Property: A detailed schedule describing the property.

Registration of Lease Deed in Delhi:

According to the Registration Act, 1908 any lease of immovable property for a term exceeding eleven months is compulsorily registrable. Even for leases of shorter durations, registration is advisable for legal clarity and enforceability.

The procedure for registering a Lease Deed in Delhi involves:

• Drafting the Deed: Prepare the Lease Deed with all the agreed-upon terms and conditions. It's recommended to seek legal assistance to ensure the deed is comprehensive and protects your interests. Online deed writing services might also be available through the Delhi Online Registration Information System (DORIS) portal, but legal review is still advisable.

• Stamp Duty: Pay the applicable stamp duty. In Delhi, the stamp duty on a Lease Deed depends on the lease term and the annual rent the rates are generally as follows:

  Up to 5 years, 2% of the average annual rent plus security deposit

  More than 5 years up to 10 years, 3% of the average annual rent plus security deposit

  More than 10 years up to 20 years, 6% of the average annual rent plus security deposit

  Above 20 years, Equal to the stamp duty on a conveyance (sale) for the market value of the property

  In perpetuity, Equal to the stamp duty on a conveyance (sale) for the market value of the property

  The stamp duty can be paid through e-stamp paper, available from authorized vendors or online through the Stock Holding Corporation of India Limited website.

• Registration Fee: Pay the registration fee at the Sub-Registrar's office. In Delhi, the registration fee for a Lease Deed is ₹1000 per instrument, along with a ₹100 pasting fee. The payment can usually be made via debit/credit card at the office.

• Appointment: Schedule an appointment to visit the Sub-Registrar's office through the DORIS portal (https://doris.delhigovt.nic.in/). All Sub-Registrar offices in Delhi have now migrated to the National Generic Document Registration System (NGDRS) portal, so ensure you are using the correct platform for appointments if DORIS redirects you.

• Visit to the Sub-Registrar's Office: On the appointed date and time, both the lessor and the lessee, along with two witnesses, must be present at the Sub-Registrar's office. They should carry the following original documents along with their photocopies:

  1. Original property documents (title deeds of the landlord).

  2. The prepared Lease Deed on stamp paper.

  3. Identity proofs of all parties and witnesses (Aadhar card, PAN card, passport, voter ID, etc.).

  4. Address proofs of all parties and witnesses.

  5. Passport-sized photographs of the lessor and the lessee.

  6. Proof of payment of stamp duty and registration fee.

  7. PAN cards of the lessor and the lessee.

• Verification and Registration: The Sub-Registrar will verify the identities of the parties and the authenticity of the documents.

• Signing the Deed: Both the lessor and the lessee, along with the witnesses, will sign the Lease Deed in the presence of the Sub-Registrar.

• Registration: After being satisfied, the Sub-Registrar will register the Lease Deed and provide a receipt.

• Collection of Registered Deed: The registered Lease Deed can usually be collected from the Sub-Registrar's office after a few days (typically around 15 days). You will need to present the receipt for collection.

Importance of Registration:

Registering a Lease Deed, especially for terms exceeding eleven months, is crucial for its legal validity and enforceability. An unregistered lease for a period of more than eleven months cannot be admitted as evidence in court. Registration protects the rights of both the landlord and the tenant.

By following this procedure, landlords and tenants in Delhi can enter into a legally sound and registered Lease Deed, clearly outlining their obligations and rights concerning the leased property. It's always recommended to seek legal advice during the drafting and registration process to ensure all legal requirements are met and your interests are protected.

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