LEASE DEED : INTRODUCTION

Hello friends, today I will give you a brief introduction about Lease Deed. Whenever one wants to occupy any premises for residential or commercial purposes on lease, the first thing which the parties have to look into is the execution of the lease deed. The person who gives the premises on rent is called the 'LESSOR' and the one who takes/uses the said premises  is called the 'LESSEE'. In common parlance, they are known as the landlord and the tenant. The money which is to be paid for the particular premises that is being used by the tenant is defined as the 'rent'.

Now very often, once the parties enter into such type of lease deed, a common dispute which is likely to arise is the issue of termination before the period of lease. For such cases, law is well established as per which; 

• In case the lease deed is concerning with the residential purpose, the same can be terminated by giving a notice in writing to the other party which gives a time of 15 days and after which if the same is not done, then the said party who has issued notice can go to the court of law for filing case.
• In case of agricultural or manufacturing operations, the lease can be terminated by giving a notice period of 6 months and only after the expiry of such period, the party can file a court case. Now the r\term manufacturing used above here can be used only in cases where the tenant is using the premises for the purpose of manufacturing a product with the help of using certain machinery. In case there is no machines employed, then the period of 6 months is not applicable.  

Essentials of the lease deed are as follows :-

1. There should be a transfer of right.

2. Time period can be in perpetuity or in months or years.

3. The transfer shall be of rent.

4. There shall be a bilateral transfer meaning thereby it must be accepted and executed by n\both the lessor and lessee.

Also, it is compulsory to register a lease deed incorporating a term of more than one year. Therefore, everyone shall  be very particular as to this aspect. And in actual having an unregistered deed is of no use, as the contents of the same cannot be read into evidence. Thus, it is advisable to go for the registration of the lease even in case the period of tenancy is not more than one year.

DIFFERENCE BETWEEN LEASE AND LICENCE

Most of us don't know the basic difference between these two terms, and very often we use them interchangeably. However, both these terms are different. In case of lease, the landlord transfers the entire right of possession to the tenant for the time agreed between the parties whereas in case of a license the landlord only grants a permission to use the particular premises not transferring the entire rights. For eg in case of a shop in the mall or a room in the hotel, the transfer is basically a license where the exclusive right is not transferred, there are certain restrictions which the tenant is confined to. On the other hand, the transfer of a house for say residential purpose is a lease where the person in occupation uses it exclusively for the time agreed in the agreement.

I hope i have made myself clear about the basics of the Lease Deed. For any queries, feel free to write in the comment section.