Lease Agreement

A lease agreement is a legally binding contract between a property owner (lessor) and a tenant (lessee) that grants the tenant the right to occupy and use the property for a specified period in exchange for regular payments, typically called rent. It outlines the terms and conditions of the lease, including the duration, rent amount, responsibilities of both parties, and other essential details

Types of Lease Agreement

Below are the major types of lease agreements in India:

Residential Lease Agreements : Residential lease agreements are agreements to lease houses or apartments for residential purposes. They are usually entered into for 12 or more months and contain the terms of the rent, how the property can be used by the lessee, and payments relating to repairs and maintenance.

Commercial Lease Agreements : Residential lease agreements are entered for leasing properties for commercial purposes like offices, stores or industries. The terms of these agreements are usually longer and more complex than residential leases. It contains terms about business hours, business operations and things that can be carried out in the space.

Fixed-Term Lease : Fixed-term lease agreements have a fixed lease period, like 1 year or 5 years. They are usually entered into between the parties for a long time and provide stability since the rent and rules remain the same for the fixed lease period.

Month-to-Month Lease : These lease agreements are entered into for a month and are renewed every month. They offer flexibility to the parties in the lease since the rules or the rent amount can be changed while renewing for the next month. However, they provide less security as they can be terminated without proper notice.

Sublease Agreement : Sublease agreements are when a lessee can further rent the leased property to someone else. Here, the lessee is responsible to the lessor. However, the provision for sublease must be mentioned in the original lease agreement between the lessee and lessor, and the lessor usually needs to approve the sublease by the lessee.