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Real Estate Lease Agreement for India

Real Estate Lease Agreement Template for India

A comprehensive legal document governed by Indian law, particularly the Transfer of Property Act, 1882, that establishes the terms and conditions for leasing real estate property. This agreement defines the relationship between the lessor (landlord) and lessee (tenant), specifying crucial elements such as rent, duration, maintenance responsibilities, and usage restrictions. It incorporates mandatory requirements under Indian registration laws for leases exceeding 11 months and includes provisions for security deposits, utilities, and termination conditions. The agreement ensures compliance with state-specific rent control laws and local municipal regulations while protecting the interests of both parties.

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What is a Real Estate Lease Agreement?

The Real Estate Lease Agreement is a fundamental legal instrument used in India for documenting property rental arrangements, whether for residential, commercial, or industrial purposes. This document is essential when any party wishes to lease out or take on lease any real estate property in India, ensuring compliance with the Transfer of Property Act, 1882, Registration Act, 1908, and relevant state-specific regulations. It captures critical aspects including property details, rent amount, security deposit, maintenance responsibilities, and duration of lease, while also addressing modern requirements such as amenities usage, force majeure conditions, and environmental compliance. The agreement becomes particularly important in urban areas where property relations need clear documentation and legal protection. For leases exceeding 11 months, registration is mandatory under Indian law, making this a crucial document for long-term property arrangements.

What sections should be included in a Real Estate Lease Agreement?

1. Parties: Identifies and provides full details of the lessor/landlord and lessee/tenant including names, addresses, and contact information

2. Background: Brief context about the property and the parties' intention to enter into a lease arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Demised Premises: Detailed description of the leased property including address, boundaries, and area

5. Term and Renewal: Duration of the lease, commencement date, and conditions for renewal

6. Rent and Security Deposit: Amount of rent, payment schedule, security deposit details, and review mechanisms

7. Payment Terms: Methods of payment, due dates, and consequences of default

8. Utilities and Maintenance: Responsibilities for utilities, maintenance, repairs, and related costs

9. Use of Premises: Permitted use of the property and any restrictions

10. Obligations of the Lessor: Landlord's responsibilities and commitments

11. Obligations of the Lessee: Tenant's responsibilities and commitments

12. Insurance: Required insurance coverage and responsibilities

13. Default and Remedies: Events of default and available remedies for both parties

14. Termination: Conditions and procedures for early termination

15. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction

16. Notices: Method and addresses for serving notices

17. Execution: Signature blocks and execution details

What sections are optional to include in a Real Estate Lease Agreement?

1. Lock-in Period: Specifies a minimum period during which the lease cannot be terminated, used in longer-term leases

2. Fit-out Period: Allows tenant time to customize the space, typically used in commercial leases

3. Force Majeure: Addresses unforeseen circumstances preventing performance, particularly relevant post-COVID

4. Sub-letting and Assignment: Rights and restrictions regarding sub-letting, used when such flexibility might be needed

5. Property Management: Relevant for properties in managed communities or commercial buildings

6. Signage Rights: Important for commercial properties where tenant branding is required

7. Right of First Refusal: Gives tenant priority if property is sold, used in long-term commercial leases

8. Environmental Compliance: Required for properties where environmental concerns are relevant

9. Parking Rights: Details of parking arrangements, important in urban properties

What schedules should be included in a Real Estate Lease Agreement?

1. Schedule A - Property Details: Detailed description of property including floor plans and measurements

2. Schedule B - Rent Schedule: Detailed breakdown of rent, escalations, and payment schedule

3. Schedule C - Inventory List: List of fixtures, fittings, and furniture included in the lease

4. Schedule D - House Rules: Building or society rules and regulations

5. Schedule E - Maintenance Responsibilities: Detailed split of maintenance responsibilities between parties

6. Appendix 1 - Property Photos: Photographs documenting property condition at lease start

7. Appendix 2 - Required Permits: Copies of relevant permits and certificates

8. Appendix 3 - ID Proofs: Copies of identity documents of parties

Authors

Alex Denne

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

Jurisdiction

India

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions








































Clauses





































Relevant Industries

Real Estate

Residential Property

Commercial Property

Retail

Industrial

Hospitality

Office Space

Warehousing

Educational Institutions

Healthcare Facilities

Manufacturing

Information Technology

Co-working Spaces

Entertainment Venues

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Administration

Compliance

Risk Management

Procurement

Corporate Affairs

Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Corporate Lawyer

Compliance Officer

Real Estate Agent

Business Development Manager

Operations Manager

Administrative Officer

Finance Manager

Chief Financial Officer

Risk Manager

Procurement Manager

Office Manager

Real Estate Director

Company Secretary

Contract Manager

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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