Skip to main content

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! 
Labels:

Comments

Post a Comment

Popular posts from this blog

Setting up an Indian Subsidiary

Foreign companies can establish their business presence in India by setting up a wholly owned Indian Subsidiary. Indian Subsidiary is the local entity of foreign company for doing business in India.  Indian Subsidiary is incorporated as a wholly owned subsidiary of parent foreign company.. The parent foreign company holds 100% shareholding in the Indian Subsidiary. Remittance received by Indian Subsidiary from foreign company is subject to Foreign Direct Investment (FDI) guidelines issued by the Government of India.   Incorporating a private limited company is a preferred choice for setting up an Indian subsidiary. Various global foreign companies operate in India through their Indian Subsidiaries, which in turn are fully owned by the foreign companies .  To setup an Indian Subsidiary following are some of the requirements: • At least 2 members are required • Minimum paid up capital required is Rs. 1 lakh • Minimum 2 directors are required, of which...
Post a Comment
Read more

A Brief Overview on Consultancy Agreements

A Consultant is a professional who possesses expert skills and knowledge for doing a particular work. Businesses have to work with a consultant for various tasks involving specialized knowledge and skills. We recommend that appointment of Consultant should be done through a written agreement. When is a consultant required? Below are few cases in which a company may need to appoint a Consultant- Any task which needs special expertise. When technology is upgraded and expert is needed. To appoint a person on a task basis without taking him/ her on company rolls. Smaller businesses often hire Consultants as they find regular hiring expensive in the beginning.  A Consultancy Agreement is a document which defines the relationship between organization and consultant. It contains broad areas like appointment, services to be provided, consideration, technical details etc. Legal Dost provides you a handy Consultancy agreement template that ca...
Post a Comment
Read more

Everything You Need To Know About Home Loans

Buying a home is a dream for everyone. With home prices rising exponentially, it has become difficult for buyers to afford a house on their own. A home loan becomes a big facilitator in such a situation. A home loan enables you to afford a house, which otherwise you would tend to miss.  A Home Loan is a loan taken to acquire a property or to construct a house. Home loans are also available for home repairs, home improvements, and renovations along with addition of a new built-up section to an existing home. Banks and financial institutions give home loans. You should consider certain factors before zeroing in on a home loan.  Some of the these factors are discussed here for your reference- Rate of Interest - It is the most crucial factor to consider while taking a home loan. The lower the interest rate, better it is. Lower interest rate reduces your monthly EMI payment, which in turn is pocket friendly for you. A lower interest rate ensures that your payment...
Post a Comment
Read more