Execution of Lease

Lease is letting of immovable property on rent. It is defined in Section 105 of the Transfer of Property Act. The person who lets out the property is called landlord and the person who takes the possession of the premises is known as the tenant.

Lease is defined as a transfer of a right to enjoy a specific immovable property, made for a certain time, in consideration of a price paid (rent), which is to be rendered periodically between two parties, a transferor and transferee.

The tenant in a transaction of lease acquires only the right to enjoy or use the premises, the ownership vests with the landlord.

While the tenancy rights in respect to all kinds of properties are governed by the Transfer of Property Act, one part of the tenancy law – eviction of the tenants – is covered by rent control legislations passed by the states. The laws of eviction of tenants may be divided into two categories

• Where the tenants have the protection of rent control legislations
• Where the tenants do not have the protection of rent laws

Rent control acts have been drafted on the assumption that the tenants are the exploited lots and they need protection from law. Different states have different rent control acts.

A lease in respect of an immovable property can be made either by an instrument in writing or by an oral agreement. All leases for a term greater than one year have to be written leases.

It is however, to be appreciated that it is always in the interest of the parties to a lease deed to get the same registered.