Statutory provisions for making a lease
What could be the various subjects of a lease?
Any immovable property can be the subject matter of a lease. e.g. a furnished dwelling house, floor premises, a residential unit, a shopping unit, industrial premises/ structure/ gala, space for advertisement, the right to work mines and extract minerals, plantations, orchards etc.
What are the statutory provisions in India pertaining to Lease?
The main provisions are contained in Sec.105 to 117 of the Transfer of Property Act, 1882. These provisions define “lease”, how leases are made, the rights and liabilities of a Lessor, the rights and liabilities of a Lessee, the rights of the lessor’s transferee, the circumstances in which leases are determined i.e. terminated and the effect of surrender and forfeiture of a lease on an under-lease (i.e. a further lease of leased property).
Do these provisions of the Transfer of Property Act apply to leases of all kinds of properties?
The Transfer of Property Act does not apply to leases of agricultural land. Such leases are governed by the laws passed by the State Legislatures. These laws vary from state to state. Leases of agricultural land are subject to various restrictions and also subject to the approvals of the prescribed Revenue authorities.
How is the transaction of “lease” generally entered into?
The normal practice has been, first, to enter into an agreement to lease and thereafter, upon the fulfillment of conditions contained in the agreement, to execute a Deed of Lease.The transfer of an interest i.e. the transfer of a right to enjoy the property, coupled with the possession, takes place upon the execution of the Lease Deed. This transfer is also known as “demise”.