Renting:

What is a lease?
Lease is a contract between the Lessor and Lessee.

What is a lessor?
The person or party who owns the property and wants to let it out on lease.

 

What is a lessee?
The person or party who wants to take the property for rent for a specified period of time.

What are the conditions for a valid lease?

• The lease agreement which contains all the terms and conditions of the lease should be understood and accepted by both the lessor and the lessee before affixing their signatures to it.
• Agreement to lease for a period of over 1 year should be registered under the Rent Control Act with proper stamp duty paid.
• The lessor should promise to let out the property owned by him to the lessee for a fixed period of time in return of agreed rental value.

How can lease agreement be created?
Lease agreement of an immovable property can be created by the following method:
Registered instrument in cases where the lease is from year to year or exceeding one year rent or reserving yearly rent. In such cases the instrument must be executed by both the lessor and the lessee and be registered with the concerned registrar.