Commercial Lease Deed

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A lease deed is a document or a written contract between the property owner or a landlord also known as lessor and the tenant or lessee, which contains all the terms and conditions, including the rent to be paid, security deposit to be made, etc. A lease deed is usually required, when the property is rented out for a long period of time. A deed has to be registered, if the lease period is for more than 11 months.


Here are some of the important provisions and details that should be listed in a lease deed:

  1. Property details, including area, location, address, structure, furniture and furnishings, if provided.
  2. Lease duration, its validity and provision for its renewal, along with the terms and conditions for its renewal.
  3. Rent, maintenance, security deposit to be paid by the tenant and the due date. Other important provisions, such as interest and penalty on payment delay, should also be mentioned. It should also mention the details of payment to be made by the tenant on a monthly basis, such as electricity charges, water bills or any other utility costs.
  4. Clauses for lease termination should be mentioned in the lease deed, along with other reasons for which the agreement can be cancelled, such as breach of deed, use of property for illegal activities, or failure to pay rent.

Is lease deed registration mandatory?

According to the Registration Act, 1908, any property being leased for residential, commercial, cultivation, hereditary allowances, or fisheries purpose, should be registered, if they are being leased out for more than 11 months. The law is applicable to all states. A lease dead that lasts only for 11 months does not require registration.


The following documents are required for lease deed registration:

  • Identity proof, such as Aadhaar Card, driving licence, passport, etc., of the landlord and tenant.
  • Address proof of the authorised signatory, from both the parties.
  • Passport-sized colour photographs of the authorised signatory, from both the parties.
  • Company PAN card and company seal/stamp, if it is a commercial property.
  • The original proof/evidence of ownership or title of the property.
  • Property documents, such as Index II or tax receipt of the property to be leased.

Route map of the property leased out.

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