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As per Section 105 of the Transfer of Property Act, the definition of ‘Lease’ can be understood as a transfer of a right to enjoy property for a certain time or in perpetuity; in consideration of a price paid or promised or of money, a share of crop, service or any other thing of value to be rendered periodically or on specific occasion to the Lessor by the Lessee who accepts the transfer on such terms.
It is a legal document having force of law which may be referenced by courts in the event of a disagreement. The lease deed must be printed on a Non-Judicial Stamp Paper. The value of the non-judicial stamp paper or stamp duty payable on the lease agreement would depend on the State and the value of the lease payable as per the lease agreement. Lease deeds can also be registered at a Sub-Registrar Office having jurisdiction over the premises to be leased. Two copies of the lease deed are usually executed, with each party retaining one of the original copies.
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