Business Legal Documents
Leases and rentals, a much integrated transactions for any business and needs well structured, detailed and clear terms and conditions. Lease agreements does exactly that. A legal contract that brings clarity of purpose, payments, tenure, renewals of lease contract of building, machinery, or the like.
A lease agreement is a legal document formed between the lessor(landlord) and the lessee (tenant). The lease agreement details the rules and regulations to be followed for renting a property. It is structured for a definite period. The lease agreement doesn’t assign the transfer of ownership to the lessee. Lease agreements can be construed for other purposes like the lease of vehicles, household appliances, etc. Lease agreements usually run for 12 months in India.
Contents of a Lease agreement
The lease agreement is prepared to address the terms and conditions entered into by the participants in the contract; the lessor and the lessee.
The key clauses that form part of the lease agreement are as follows:
- Information on the parties to the contract or lease agreement.
- The duration for which the lease agreement is made.
- The amount of rent that has to be paid during the tenure.
- Payment terms.
- The amount of security deposit
- The consequencesthat are endured when there is a failure of rent payment.
- All the rules to be abided while using the property, especially regarding sub-lease.
- Conditions concerning the maintenance/repair of the property and alterations to the premises
- And other essential terms and conditions.
- In case of not adhering to it, there are chances for penalty actions against either of the parties. The penalty action may range from a derogatory civil suit to being black-listed from finding a new space for rent.
Profito Global helps the client in drafting the lease agreements comprising all valid points that have to be considered in the arrangement. Profito Global knows the market conditions and structures the lease agreement accordingly. Profito Global will also assist the parties to the lease agreement with any terms and conditions as per the need.
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Is it mandatory to register a lease agreement in India?
It is essential to get the lease agreement registered and stamped under the Registration Act,1908. It has to abide by the laws put forward by the respective State or Union Territory Governments and the Transfer of Property Act,1882.
What are the different types of lease agreements in India?
- Financial Lease
- Operating Lease
- Direct Lease
- Domestic Lease
- International Lease
- Single Investor Lease
- Sales and Leaseback
- Leveraged lease
How does a lease agreement benefit the clients?
A lease agreement states the relationship and the conditions to be followed. A lease agreement elaborates on the different rules and regulations that have to be followed by the lessor and the lessee. The terms and conditions pertaining to the breaking of the lease are also given in clarity so that they needn't be discussed at a later stage. The stated rules will provide stability to the lease relationship.