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Necessary Terms to be Included in Lease Agreement

When owner of an immovable property decides to confer upon another person the right to occupy and use that property, it becomes imperative to formalize the arrangement in form a Lease Deed/ Agreement. 

A Lease Agreement is a document which outlines the terms and conditions governing the lease arrangement between the parties.  Under this agreement, the owner of property gives a right to tenant to use the property for a certain period of time in return of monthly rent.  A Lease Agreement should be carefully drafted so as to make sure that all terms as agreed between the parties are clearly recorded. 

There are certain essential clauses mentioned below which should form part of every lease agreement-   
  • Parties to lease-  There are two parties to a lease agreement- Lessor (one who gives the property on rent) and Lessee (one who takes the property on rent).

  • Duration- The Lease Agreement should mention the duration of lease with commencement and termination date clearly stated.
  • Property Description– It should clearly mention the details of leased property like premises number, location, and description of rooms etc.. 
  • Rent – The payable monthly rent should be clearly mentioned in the Agreement. Also, payment date, agreed escalation in rent after specified period, late payment charges etc. should be clearly mentioned.
  • Security Deposit- An interest free security deposit is paid by the tenant to landlord to act as a safeguard for landlord in case of any breach by the tenant. The amount of security deposit as agreed between the parties shall be mentioned in the agreement along with provisions regarding its refund.
  • Maintenance Charges- These charges are payable for maintenance of the property and other facilities provided with it. Maintenance charges are very common in case the property is located in a group housing society.
  • Taxes- The details of all the taxes like property tax, municipal tax etc. and responsibility of their payment shall be clearly stated in the lease agreement.      
  • Renewal- It is advisable to include the provisions regarding renewal in lease agreement to avoid any ambiguity.  
  • Other provisions- Apart from above, various provisions like occupants of the property, repairs and damages, sub-letting, obligations of both parties etc. should be mentioned. 
To get a secured and comprehensive Lease Agreement template, visit Legal Dost. Legal Dost gives you an edge in all the legal matters with cost effective service. Get the best professional help for your requirements consult Legal Dost Today! 
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