A Residential Lease Deed is a document that outlines the rights and responsibilities of both the landlord and tenant when a residential property is being rented. Leases can be short-term (a few months) or long-term (a year or more) and are used for various types of rental properties, including homes and apartments.
A Residential Lease Deed is not the same as a commercial lease deed. In a commercial lease deed, the tenant is typically a business entity and the property is used for business-related activities such as retail, office work, or manufacturing. The commercial lease deed is quite detailed and outlines the responsibilities of each party involved, including taxes, maintenance, and restrictions. Usually, commercial lease deeds are entered into for longer periods of time.
No, it is not mandatory to have a Residential Lease Deed. However, having one will help both parties to have a clear understanding and avoid any disputes in future.
A Residential Lease Deed must contain the following clauses:
Any individual above the age of 18 years or entities registered in India for utilising it for employees.
The duration of the Residential Lease Deed varies from one year to several years. It depends on the nature of each transaction. Often, the Residential Lease Deed has a clause for automatic renewal, under which the Residential Lease Deed extend to a further period unless terminated by either party in writing.
The Lease Deed would need to be printed on non-judicial stamp paper or e-stamp paper, which is available in certain states. The value of the stamp paper would depend on the state in which it is executed, as well as the duration of the lease and the lease rent. Each state in India has provisions in respect of the amount of stamp duty payable on the lease deed, and the same would need to be determined based on the specific facts of the case. Information regarding the stamp duty payable can be found on the State government websites.
After printing the document on stamp paper or e-stamp paper, as applicable, both parties should sign the lease deed and each party should keep a copy of the lease deed.
Yes, the Residential Lease Deed need to be registered if the period of the lease is more than one year. For registration, both the lessor and lessee have to go to the concerned office of the sub-registrar where the property is located.
Yes, two witnesses over the age of 18 are required to register a Residential Lease Deed. Even if registration is not completed, having two witnesses will aid in resolving disputes easily.
Residential Lease Deed in India may be subject to the rent control laws of individual states. Rent Control Acts provide some rights and benefits to tenants such as protection against eviction, limits on the rent being charged etc. Where a property falls under the rent control law, the tenant may become a statutory tenant. However, these acts apply only to a tenancy of over 12 months.
Further, in terms of the Transfer of Property Act, 1882, Registration Act, 1908 and Indian Contract Act, 1872 would be applicable to Residential Lease Deed.
It would be useful to note that it is required to carry out police verification of tenants in some states in India, prior to giving the residential property on lease to such tenants.
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