This Lease Agreement (The Lease ) Is Made And Entered Into, As Of This Date,: Fill & Download for Free

The Transfer of Property Act, 1882Section 105.Lease defined.—A lease of immoveable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.Lessor, lessee, premium and rent defined.—The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service or other thing to be so rendered is called the rent.___________________________In India the party who takes the property for his use and occupation for prescribed time executes a lease deed. Property can be defined as something tangible or intangible to which its owner has legal title. Lease therefore can be of a movable or an immovable property. Lease is specie of transfer of immovable property under the Transfer of Property Act 1882. In the instant article on Lease, we intend to deal with the immoveable property.A lease is transfer of an interest in an immovable property which is the subject of the lease and that interest is the right to occupy and use the property for which the lease is given for period and on such terms and conditions as agreed between the parties. The transferor of property is called the lessor and the person to whom it is transferred is referred as a lessee, and the consideration so rendered is called rent.The essentials ingredients of a lease agreement are:o Parties to the agreement;o The identification of the property subject matter of the arrangement;o Term of lease,o Rent,o Date of commencement and expiry.Procedure of forming a lease agreement:Lease of immovable property for one year, or term exceeding one year, can only be made by registered instrument. All other leases may be made by unregistered instruments or oral agreements.Where there is no contract or local law governing the execution of a lease deed then lease of immovable property for agricultural or manufacturing purpose shall be deemed to be on yearly basis and terminable on the part of either lessor to lessee by giving 6 months notice. On the other hand a lease of immovable property for any other purpose shall be for monthly basis, terminable by either lessor or lessee by giving 15 days notice.In the absence of a lease agreement in writing or the existing agreement is silent on the rights and liabilities of lessor or lessee then section 108 of the Transfer of Property Act sets down the guidelines to be followed for a working relationship in a lease arrangement. Once the lessor transfers the property leased to the lessee, the lessee in the absence of contract to the contrary shall possess all the rights and will also be subject to all the liabilities of the lessor as he is the owner of it. For computing the time for a lease of immovable property, if time is expressly mentioned then the lease of immovable property will commence from that particular day and where no time is mentioned the lease begin from the day when it was entered into.Where the time is limited and the lease can be terminated before the expiration, but the lease deed omits to mention at whose option it is terminable. In such a case the lessee will have the option to determine the lease.The Right of Possession:A lease of an immovable property can be determined through 8 modes and it is only by one of these methods that the lease stands determined and the lessor gets back right of possession of the property;o By efflux of time limited thereby;o where the interest of the lessor terminates on happening of an event;o the interest of the lessor terminates on, or his power to dispose of the same extends to the happening of any event;o in case the interest of lessor and lessee becomes vested;o express surrender before the term is over;o implied surrender;o forfeiture;o When the lessee renounces his characterThe prerequisites of the agreement:Holding over comes into play when even after the determination of lease the lessee remains in possession of the property and the lessor or his legal representatives accept the rent and assent to the continuing possession by the lessee. In such a case the lease stands renewed year after year or month after month according to the purpose for which the property is leased. Where lease of immovable property has been determined by forfeiture for non-payment of rent and the lessor files a suit to evict the lessee. If the lessee at the hearing of the suit pays to the lessor rent in arrear with interest, full cost of suit or provides sufficient security within 15 days, the court may pass an order to relieve the lessee from forfeiture and allow him to hold on to the property.Lease and License:Lease and license are two different aspects of transferring property and to ascertain whether the transaction is a lease or license it has to be ascertained whether parties had intended to create a lease or a license; if the document creates an interest in the property, it can be referred as lease and if it permits a person to use a property and the legal possession remains with the owner or the original lessee it is called a license.The Stamp Duty Act 1899:The Stamp Duty Act 1899 enumerates the value of stamp duty payable on different lease documents. A lease agreement can be stamped as an ordinary agreement under article 5 of the Indian stamp act and corresponding provision of the state stamp duty act. If an agreement of lease amounts to a demise it is required to be stamped under article 35 of the Indian stamp act which also includes a sub-lease or an agreement to let and sublet. Under article 35, duty charged is on the average annual rent which is multiplied by the number of years according to the length of the lease period.Therefore, while entering into a lease, lessor and lessee have to act according to the provisions mentioned under Transfer of Property Act, registration, amount payable on account of stamp duty and other terms and conditions so mentioned in the lease deed.

Dear User,Thank you for the question.Properties are generally classified into 2 types. viz. Freehold properties and Leasehold Properties.Freehold Properties are those properties wherein the underlying land is in the ownership of the developer.Leasehold Properties are those properties which are developed on land owned by a govt authority or third party. Let's understand this by way of an example. In Navi Mumbai, majority of the lands are owned by CIDCO (City and Industrial Corporation of Maharashtra). These lands are procured by developers on a leasehold basis by way of lease agreement. This lease is also termed as perpetual lease as it is generally for a long tenor of 99 years.Check on the below points while buying leasehold Properties:Tenor of the lease which is left as per the lease agreement and confirm what will be the process for renewal of the lease agreement. To be on a safer side but only those properties which has a balance lease tenor of more than 50 years.In leasehold Properties you need NOC from the authority for availing home loan and for further sale of property. Understand the process for obtaining this NOC and the cost involved for obtaining the same. Generally, this process is very tidious and time consuming.Check on the approvals for the projects thoroughly whether construction is as per the approved plans. Hence, it is always better to obtain bank loan on such properties as it will help in checking the legality and technical clearance of the property.Below are the additional documentation which one needs to obtain for different kind of Leasehold property:TYPE 1:Where the Party outrightly purchases Flat /Home from Authority in buildings constructed by Authority:Allotment letter from the authority.NOC from the authority.TYPE 2:Where Authority has given Land to individuals and the individual constructs the House: It is self construction cases.Agreement to lease between Authority & applicant.Blue print of building plan approved by Authoritiy.Commencement Certificate from authority for construction.NOC from Authority for taking loan for purchase of the property.Development Agreement.(In case the plot is owned by one person and the building is made by another/builder).TYPE 3:Where Authority has given Land on lease to builders (TENDER PLOTS):Agreement to lease between Authority and builders.Blue print of architect’s plan with sanction/approval from Authority /building proposal dept.Commencement letter for construction i.e. Sanction letter from Authority / town planning/building proposal dept.NOC from Authority & Builders for mortgaging property to the bank — As the land is owned by the authority and builder is the Lesee who is constructing the building you will need NOC feom both the authority and builder for availing the home loan.TYPE 4:Where Authority has given Land on lease directly to Society:Agreement to lease between Authority & Society.Blue Print of building Plan approved by authorities.Commencement certificate issued by authorities.Society’s registration certificate.List of Society members approved by Authoritiy.NOC from Authority & Society for mortgaging property to any bank.Allotment letter issued by Society to the flat purchaser.Share Certificate.Additional Requirement if Society assigns development rights to developers / builder.Development agreement between Society and BuilderPower of attorney from Society to Builder.Partnership deed of builder’s firm (If its a partnership firm)NOC from builder for mortgaging property to any bank.Registered agreement for sale between builders & applicant with Registration Receipt thereof.Type 5:Resale of leasehold flats:Original deed of apartment between Authority & existing owner.Original Allotment Letter of in name of existing owner.Registered agreement for sale between existing owner and proposed buyer with Registration Receipt.NOC from Authority for transfer of existing owners rights in favour of new buyer and for mortgaging property to any bank.NOC from Society for bank loan and transfer on records of society.Loan on leasehold property can be done by majority of the banks / FI's.Apart from this if you are buying a property which is pre leased. Then you need to take care of the below points before buying.Buying a Leased Property:Buying a Pre-leased property is a common phenomenon and banks do lend for buying such properties. Majority of the reknowned banks/FI lend on such properties. Pre-leased property can be residential or commercial. Below are the points you need to take care before buying a Pre-leased property on loan.Lease Agreement —The lease agreement with lesee has to be valid. Banks will always require a Registered lease agreement.If the lease agreement is expired then please insist on renewal of the lease agreement or make the lesee vacate the property before you enter into any agreement with the seller for purchase of the property.You need to execute a fresh lease agreement with the lessee once the ownership rights are transferred in your name. Obtain a undertaking from the Lesee prior to entering into any documentation for buying the property. The undertaking should clearly state that the lesee will enter into a fresh lease agreement on agreed terms with new buyer of the property.Occupancy of the Property —Check on the occupancy of the property. The property must be occupied by lesee only. In many cases, lesee may sub-lease the property to someone else without the knowledge of original owner. In such cases there are issues in vacating the property. Hence, please verify the occupancy of the property upfront.Rental Credits —If your intention to buy the property is for earning rental income. Then, rental credits play a very important role.Check on the rental Credits. Go through the bank statements of owner and check whether the tenant is paying the rentals regularly.Informing the Lesee —It is very important to inform the Lesee that the original owner is selling the property and that the lessee has to execute a fresh agreement with the new owner once the property is transferred on papers.Undertaking from the lessee that the rentals will be transferred to the new owners bank account from a specified date.Inform the tenant that there is a loan on the property and of the borrower of the loan defaults in returning the loan back to the bank, then bank has a right to take possession of the property and in such scenario the tenant has to vacate the property. This declaration is also required by banks prior to Funding.Quality of Lessee:In case of commercial property it is very important that you check on the stability of the Lesee. If your intention is to lease out the property and earn rental income then always lease out the property to reputed lessee like banks, large food chain or some established business houses. As these businesses wouldn't shift their work premise more frequently.Also in future if you wish to avail extended finance on the property then you can get LRD (Lease Rent Discount) loan on your property and such loans require good lessee. Hence, quality of Lessee plays very vital role.Hope your query is answered.For more details please contact in person.Best Regards,Abhishek Kotian.

This article covers the universe of options Terminating a Car LeaseAnyone that's considering ending their lease early needs to proceed with caution; unless it's done correctly, it can be a very costly mistake in terms of money and future creditworthiness. Essentially, there are five options when it comes to ending a car lease before the expiration date:Return the vehicle to the dealership,Lease another car,Have the car repossessed,Buy out the lease,Or do a lease transfer / lease swapEach of the above options is discussed in more detail in the paragraphs below.Return the CarThe easiest way to end a lease early is to return the car to the dealership before the contract expires. Keep in mind the lessee is obligated to make the remaining monthly payments, pay the costs of any penalties for excess wear and tear, as well as the expense associated with excess mileage charges.In short, it's possible to return the car, but the financial obligations do not stop. The contract is still enforceable until the term expires; even if the car is sitting in the dealer's parking lot.Lease a Different VehicleIt's also possible to end a lease early by entering into an agreement to lease a different car from the dealership. Before selecting this option, it's important to understand how much equity there is in the car. What is owed on the vehicle is based on calculations involving the car's residual value, depreciation, and capitalized cost.If in a negative equity position (someone owes more than the car is worth), the money owed is often rolled into the new lease. This has the opposite effect of a down payment. If that occurs, the new monthly lease payment may be extremely high because it's necessary to pay off principal owed from the old car's lease plus the cost of the new car.RepossessionAnother option is to stop making the monthly payments and have the dealership repossess the car. Whenever someone doesn't meet their financial obligations to a dealership, there is a very good chance a finance company will attempt to recover those payments. Here is the trade off:In the short-term, it might be possible to get away with defaulting on the remaining lease payments, and / or not paying the dealership any money still owed. Over the long haul, a credit score and / or rating may be damaged, and that might affect future borrowing of any kind. In fact, this could make leasing a car nearly impossible, or much more expensive than it was in the past.Lease BuyoutAnother option is to buy out the lease from the dealership or financing company. This option can sometimes work in the lessee's favor if the value of the car has unexpectedly held up better than projected by the dealership. For example, the buy out price might be $15,000, but the car's true market value is closer to $17,000.In reality, the above example doesn't happen very often. That's because dealerships are very good at estimating car values well into the future. In fact, more often than not, buying out the lease is a costly decision because cars experience their greatest depreciation over the first two years of ownership. This means the actual market price might be lower than the buyout price; especially when terminating within the first two years of the agreement.Car Lease SwapsSometimes dealerships allow the lease to be transferred to another party, who is then responsible for making the remaining payments on the car. This is sometimes referred to as a lease swap. The person assuming the lease gains the benefit of the capitalized cost reduction payment, which was made to lower monthly costs. On the flip side, the original lessee has the chance to walk away from the car without worrying about a negative impact to their credit rating.