Lease Agreements
A lease gives a tenant the right to occupy a property for a fixed period in return for rent, and transfers an interest in the property for that time. Under the Transfer of Property Act, 1882, a lease for more than one year, or from year to year, can be made only by a registered document.
Registration is governed by the Registration Act, 1908 and stamp duty by the Indian Stamp Act, 1899 as it applies in the state, which in Haryana depends on the term and the rent. A commercial lease also has to settle matters the statutes leave open: lock-in, escalation, fit-out, maintenance charges and what happens at the end.
When you need it
When taking office, shop or warehouse space
A business commits to rent for years. The landlord’s draft is written for the landlord.
When letting out a property
An owner needs security for rent, control over use and alterations, and a clean way to get the property back.
When a lease has a lock-in
A lock-in fixes the minimum period. What is payable if the tenant leaves early should be clear at the start.
When a lease is up for renewal
Renewal is the moment to revisit rent, escalation and terms that have caused friction.
When a dispute is building
Unpaid rent, a deposit withheld or a notice to vacate each turn on what the lease and the law say about termination.
How the process works
Five stages, from the terms to registration. Timings are typical, not promised.
- 1
Agree the commercial terms
Depends on the partiesRecord the premises, the term, the rent and escalation, the deposit, the lock-in, the rent-free fit-out period, maintenance charges and who pays which taxes.
Documents
- The offer letter or term sheet
- The landlord’s draft, if any
- 2
Check the property and the landlord
About a weekConfirm that the landlord owns the property or has the right to let it, that it can lawfully be used for the tenant’s business, and whether it is mortgaged.
Documents
- The landlord’s title document
- The occupancy or completion certificate
- Any mortgage or society permission
- 3
Draft or review the lease
Commonly one to two weeksCover use, rent and deposit, repairs and maintenance, alterations and fit-out, subletting and assignment, insurance, the landlord’s access, default, termination, handing back the premises and dispute resolution.
- 4
Stamp and sign
At signingCalculate and pay the stamp duty, usually by e-stamp, and have the lease signed by both parties in the presence of two witnesses.
- 5
Register
Within four months of signingPresent the lease for registration at the office of the Sub-Registrar within four months of signing, with both parties or their authorised representatives present.
Documents
- Identity proof of the parties and witnesses
- A board resolution or power of attorney for a company
Common questions
A lease for more than one year, from year to year, or reserving a yearly rent has to be made by a registered document, under section 107 of the Transfer of Property Act and section 17 of the Registration Act. Shorter leases can be made without registration.
Under section 49 of the Registration Act, it cannot be used as evidence of the lease or its terms, such as the lock-in or the agreed rent. The tenancy is then treated as running from month to month.
The parties can agree. In practice the tenant often pays, or the cost is shared. The amount depends on the state, the length of the lease and the rent and deposit.
Generally yes, if the lease is properly stamped and registered. A tenant who leaves during the lock-in can be liable for rent for the rest of that period, subject to what the lease says and the landlord’s duty to limit its loss.
The lease decides. Where it is silent, section 106 of the Transfer of Property Act requires fifteen days’ notice for a month-to-month tenancy, and six months for a lease from year to year or for manufacturing purposes.
A lease transfers an interest in the property and gives the tenant exclusive possession. A licence is only permission to use it. Courts look at what the parties intended and how the property is occupied, not the title of the document.
Only as the lease provides. Commercial leases usually fix an escalation, such as a percentage every year or every three years. Without a clause, the rent stays the same for the term.
Under section 108 of the Transfer of Property Act, a tenant may sublet unless the lease says otherwise. Almost all leases restrict it, or require the landlord’s written consent.
Related
To discuss a lease, write to info@ireniclegal.com or call +91 96547 47331. Written by Adv. Kanika Marwaha Bindal; last updated 7 October 2026.