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Construction Lease Agreement Template for India

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Key Requirements PROMPT example:

Construction Lease Agreement

"I need a Construction Lease Agreement for a retail mall development project in Mumbai, where my company will lease the land for 30 years starting March 2025, with rights to construct a six-story shopping complex and parking facility within the first 24 months of the lease term."

Document background
A Construction Lease Agreement is essential when a tenant requires rights to construct or significantly modify structures on leased property in India. This hybrid agreement type is commonly used in commercial development, industrial projects, and infrastructure development where the lessee needs both occupancy rights and construction permissions. The agreement must conform to Indian property law, construction regulations, and local building codes, making it more complex than standard lease agreements. It typically includes detailed construction specifications, approval requirements, timelines, and quality standards, alongside traditional lease provisions such as rent, term, and maintenance obligations. This document is particularly relevant when developers or businesses want to construct customized facilities on leased land without purchasing the property outright.
Suggested Sections

1. Parties: Identification of lessor and lessee with complete details including registration information

2. Background: Context of the agreement, property details, and purpose of construction lease

3. Definitions: Definitions of key terms used throughout the agreement

4. Lease Grant: Formal grant of lease rights and permitted use of property

5. Term and Renewal: Duration of lease, commencement date, and renewal provisions

6. Rent and Payment Terms: Rent amount, payment schedule, security deposit, and escalation terms

7. Construction Rights and Obligations: Scope of permitted construction, timelines, and quality standards

8. Approvals and Permits: Responsibility for obtaining necessary construction and occupancy permits

9. Property Maintenance: Maintenance obligations during and after construction

10. Insurance and Liability: Required insurance coverage and allocation of risks

11. Default and Remedies: Events of default and corresponding remedies

12. Termination: Grounds for termination and consequences

13. Handover Provisions: Process and conditions for property handover upon lease end

14. Governing Law and Jurisdiction: Applicable law and dispute resolution mechanism

Optional Sections

1. Force Majeure: Provisions for unforeseen circumstances affecting construction or lease obligations

2. Environmental Compliance: Additional environmental obligations beyond statutory requirements

3. Assignment and Subletting: Rights and restrictions regarding transfer of lease or construction rights

4. Mortgage Rights: Provisions allowing property mortgage for construction financing

5. Step-in Rights: Rights of lenders or third parties to take over in case of default

6. Alterations and Modifications: Rights and procedures for making changes to approved construction plans

7. Utilities and Services: Specific arrangements for utility connections during construction

Suggested Schedules

1. Property Description: Detailed description of land/property including boundaries and measurements

2. Construction Plans and Specifications: Approved architectural plans, drawings, and technical specifications

3. Construction Timeline: Detailed construction schedule with milestones and completion dates

4. Rent Schedule: Detailed breakdown of rent payments, escalations, and additional charges

5. Approved Materials List: Specifications of construction materials to be used

6. Completion Certificate Requirements: Criteria and process for obtaining completion certification

7. Maintenance Standards: Detailed maintenance specifications and standards

8. Insurance Requirements: Specific insurance types and coverage amounts required

9. Form of Bank Guarantee: Template for required bank guarantees or security deposits

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































Clauses



































Relevant Industries

Real Estate

Construction

Commercial Development

Industrial Development

Retail

Manufacturing

Hospitality

Healthcare

Education

Logistics and Warehousing

Information Technology

Relevant Teams

Legal

Real Estate

Construction

Facilities Management

Project Management

Finance

Procurement

Risk and Compliance

Operations

Property Management

Relevant Roles

Real Estate Manager

Construction Project Manager

Legal Counsel

Property Manager

Facilities Director

Development Director

Chief Operating Officer

Contract Manager

Procurement Manager

Risk Manager

Commercial Director

Corporate Real Estate Manager

Site Engineer

Compliance Officer

Finance Director

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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