Lease deed: All you need to know about it

A lease deed is basically a rental agreement made when a property is being used by someone other than the property owner. It is an agreement between the landlord or property owner and the tenant of that property.

The owner of the property is renting or leasing out their property and with that, there will have to be certain stipulations followed to protect both the landlord and the tenant from facing any losses.

This legal contract states all the terms and conditions that both parties have to abide by while the lease is valid. Lease deeds are required to be registered when the time period of the lease is greater than 11 months.

What is a lease deed?

A lease deed is an agreement or contract between the owner of a property (the landlord), also known as the lessor, and the tenant or lessee of the property. This contract will contain all the terms and conditions to be followed while that property is being rented out to that particular tenant. These terms and conditions include the rent to be paid monthly, the time the rent will be paid each month, obligations of the landlord and tenant regarding maintenance and bills, security deposit to be made, etc. A lease deed is usually drafted and needed if a property is to be rented out for an extended period of time. This document needs to be registered by law when the time period of the lease is more than 11 months.

What is included in the lease deed?

The terms and conditions in a lease deed are extremely important and need careful consideration as these determine what can and cannot be done during the lease period. Here are some of the important details that should be included in a lease deed:

  • Details of the property. This includes the area, location, address, structure, the furniture in the property as well as the furnishings present.
  • The duration of the lease. The time period for which the lease is valid and provisions for the lease renewal. The terms and conditions for renewal of the lease deed also need to be provided.
  • Rent, security deposit and maintenance that has to be paid by the tenant need to be stated. The due date of these payments should also be included.
  • The interest and penalty in case the payments are delayed should also be stated.
  • The payment details that need to be made by the tenant monthly basis (electricity bills, water bills, utility costs, etc.) should be stated in the lease deed.
  • Any clauses for the termination of the lease should be mentioned. Other reasons for which the contract may be canceled should be stated. These could include breach of contract, illegal activities on the property, damage to property or the failure to pay monthly rent.

What is the difference between a lease deed and a lease agreement?

A lease agreement will usually state all the general aspects of the lease. These may include the lease duration, the monthly rent payable, the renewal clauses, etc. A lease deed will also include all the details concerning the typical day-to-day operations of the lease.

Documents required for lease agreement registration

It is extremely important to register a lease agreement as this helps prevent disagreements and disputes between landlords and tenants in the future. If all the terms and conditions are drawn out clearly and agreed upon, then both parties can refer to this document if any disagreements occur regarding the lease. The lease agreement can be registered at the sub-registrar’s office. The registration needs to be done at least four months prior to the date of the expiration of the deed. In case of expiry, a fresh lease deed needs to be drafted.

These are the documents that are required for lease deed registration:

  • Identity proof of the landlord and the tenant. This can be Aadhaar Card, driving license, PAN card or passport, etc.
  • Address proof of both parties – tenant and landlord.
  • Passport-sized color photographs of the authorized signatory (both landlord and tenant).
  • Company PAN card and company seal/stamp if the property is commercial property.
  • The original evidence of ownership or the title of the property that is being leased.
  • Property documents including Index II or the tax receipt of the property that is being leased.
  • Route map of the property leased out.

Is lease deed registration mandatory?

Lease deed registration is mandatory when the lease period is more than 11 months. According to the Registration Act, 1908, property that is being leased for residential, commercial, cultivation, hereditary allowances, or fisheries purpose, needs to be registered, if it is being leased for more than 11 months. This law is enforced in all states of India except for Jammu and Kashmir. If a lease deed is set for less than 11 months then it does not need to be registered.

Why are lease deeds for 99 years?

The development authority usually gives development rights of land to a builder for a 99-year lease. This suggests that the person who has the leasehold land will own it for 99 years. After this, the ownership of the land is passed back to the landowner.

These long-term leases govern the transfer of land or property and the uses of that land or property. The time is set at 99 years as this period is thought to be a safe choice, for it should cover the lifetime of the lessee as well as protect the lessor’s ownership of the land.

Lease deed format

Here is an example of the lease deed format:

Stamp duty on a lease deed

The stamp duty to be paid on lease deeds will differ from state to state in India. The stamp duty is decided by the revenue department of each state. For example, in Maharashtra, the stamp duty is set at 0.25 percent of the total rent for the lease period. In West Bengal, the stamp duty on all lease deeds is Rs. 200. In Punjab, stamp duty is 8% of the annual average rent amount for a lease that is 1 to 5 years, and 3% of of the annual average rent amount for a lease that is 5 to 10 years.


MyGate is building technology to simplify check-ins everywhere. Our flagship solution, launched in 2016, currently facilitates over 2 million check-in requests every day at thousands of gated premises across the 25+ cities in which we operate, and continues to show rapid growth. We’ve strengthened our commitment to information privacy by following GDPR guidelines, the global gold standard for data privacy.

Tenant police verification in Noida: importance and process [2023]

In the modern era, the idea of renting properties for accommodation has proved to be useful. India’s real estate market has benefitted from the need for rented apartments and...

Tenant police verification in Mumbai: importance & process [2023]

The practice of renting residential properties has been well thought of over a while, especially during India’s evolution in the real estate market. Although many people think that renting...

Tips to deal with illegal property possession

There are several problems that land owners may face in India where the judicial system lags and unlawful acts can often be committed with little consequence. Under the umbrella...

Semi-furnished VS Unfurnished VS fully-furnished apartment

The terms ‘unfurnished’, ‘semi-furnished’ and ‘fully-furnished’ are often thrown around when discussing rental apartments. Each term refers to the amount of (or lack of) fittings, furniture and furnishings that...

Renting v/s buying a house: Explained pros and cons

Everyone imagines owning a home one day – a place to call your own. But as property prices go higher and higher, the reality of owning realty can sometimes...

What is Possession Certificate and it’s importance

When dealing with buying or selling property, the possession certificate of that property is extremely important. It is essential that the seller of the property hands over the possession...