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Lease / Rental Agreement

A landlord-and-tenant agreement for residential or commercial premises: the rent and when it is due, the security deposit, the term and any lock-in, escalation, who repairs what, and how either side ends it. The eleven months most of these run for is a registration convention rather than a rule — s. 17 of the Registration Act makes any lease exceeding one year compulsorily registrable, and an unregistered one cannot be proved for its terms. State Rent Control Acts apply on top. Creates a tenancy — an interest in the property in the tenant's favour under the Transfer of Property Act. For bare permission to occupy WITHOUT creating a tenancy — the leave-and-licence arrangement standard in Maharashtra — use the Leave and Licence Agreement instead.

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What this document contains

12 clauses every lease / rental agreement carries, plus 9 you can add.

  1. 01

    Introduction & Preamble

    Identifies the Landlord and Tenant, effective date, lease type, property type, and purpose of the agreement.

  2. 02

    Grant and Property Description

    Full address, area, furnishing status, parking, inventory of provided items.

  3. 03

    Definitions

    Defines key terms: Demised Premises, Common Areas, Fittings and Fixtures, Security Deposit, Maintenance Charges.

  4. 04

    Lease Term

    Duration, commencement date, lock-in period, auto-renewal terms.

  5. 05

    Rent & Payment

    Monthly rent, due date, payment mode, bank details, grace period, and late payment penalty.

  6. 06

    Security Deposit

    Deposit amount, interest, return period, and permitted deductions.

  7. 07

    Maintenance & Repairs

    Landlord and Tenant responsibilities for structural and minor repairs, maintenance charges.

  8. 08

    Use of Property

    Permitted use, subletting restrictions, structural changes, occupancy limits, pet policy.

  9. 09

    Representations and Warranties

    Operative warranties from each Party: the Landlord's title, authority, freedom from encumbrances, cleared outgoings and any society or lender no-objection; the Tenant's authority, KYC particulars and cooperation with tenant or police verification.

  10. 10

    Termination

    Notice period, termination grounds for both parties, breach cure period, early termination penalty.

  11. 11

    Governing Law and Dispute Resolution

    Applicable law, jurisdiction, and dispute resolution mechanism (courts or arbitration under Indian law).

  12. 12

    General Provisions

    Boilerplate: entire agreement, severability, waiver, amendment, notices, assignment, survival, compliance with laws.

Optional clauses

  • Rent Escalation

    Annual rent increase mechanism — fixed percentage, CPI-linked, or market review.

    Worth adding when: Term exceeds 11 months — protect against inflation

  • Utilities

    Responsibility for electricity, water, gas, internet bills, meter transfer, and utility deposits.

    Worth adding when: Clarify who pays which bills and meter transfer responsibilities

  • Insurance

    Property insurance, tenant's contents insurance, and cost allocation.

    Worth adding when: Commercial property or high-value contents — property and liability insurance

  • Handover & Inspection

    Move-in/move-out joint inspection, inventory verification, photographic evidence, handover timeline.

    Worth adding when: Furnished or semi-furnished property — document condition at move-in/move-out

  • Registration

    Registration requirement (mandatory for leases > 11 months), cost sharing, and timeline.

    Worth adding when: Lease exceeds 11 months — registration is mandatory under Section 17, Registration Act, 1908

  • Force Majeure

    Relief from obligations due to events beyond reasonable control — acts of God, pandemics, government action.

    Worth adding when: Long-term leases or disaster/pandemic protection

  • Indemnification

    Obligations to indemnify against losses from property damage, third-party claims, or breach.

    Worth adding when: Commercial lease or property damage liability concerns

  • Data Protection and Privacy

    Compliance with DPDP Act 2023, IT Act 2000, data breach notification obligations.

    Worth adding when: Personal data collected (tenant KYC, Aadhaar, etc.)

  • Custom Clause

    A free-form clause for bespoke provisions not covered by standard clauses. Use clauseId 'custom-clause-1', 'custom-clause-2', etc. to add multiple.

What the law requires

Registration mandatory > 11 months
Leases exceeding 11 months MUST be registered under the Registration Act. Unregistered long-term leases cannot be used as evidence of the agreed terms. Always include a registration clause for leases > 11 months.
Section 17, Registration Act 1908; Section 49 (effect of non-registration)
MTA: Digital registration within 60 days (best practice)
The Model Tenancy Act 2021 (with 2025-2026 amendments) recommends ALL rental agreements be registered with the Rent Authority via online portals within 60 days of execution, using digital stamping. NOTE: The MTA is a central model act — adoption varies by state. Where the state has adopted MTA, this is mandatory; otherwise treat as a strong best practice. Default to 60-day timeline and recommend digital/online registration.
Model Tenancy Act 2021 (central model act); state adoption required for enforceability
Unstamped lease inadmissible + penalty
Stamp duty is MANDATORY for all lease agreements. An unstamped lease deed is inadmissible as evidence and attracts penalties up to 10x the deficiency. Always recommend proper stamping.
Section 35, Indian Stamp Act 1899
Stamp duty varies by state
Each state has significantly different stamp duty rates for lease agreements. Never assume a uniform rate — use the correct state-specific schedule.
State Stamp Duty Schedules
MTA: Security deposit ≤ 2 months residential (best practice)
The Model Tenancy Act recommends security deposits for RESIDENTIAL properties be capped at 2 months' rent. NOTE: The MTA is a central model act — enforceability depends on state adoption. Where the state has adopted MTA, this cap is binding; otherwise it is a strong best practice. If depositMonths exceeds 2 for a residential lease, advise the user that this exceeds MTA guidelines. Commercial leases are not subject to this cap.
Model Tenancy Act 2021 (central model act); state adoption required for enforceability
MTA: 90-day rent increase notice (best practice)
The Model Tenancy Act recommends landlords provide 90-day prior written notice before any rent increase, with annual increases typically capped at 5-10%. NOTE: The MTA is a central model act — enforceability depends on state adoption. Regardless of state adoption, 90-day notice is a strong best practice for tenant protection. Always include a 90-day landlord notice requirement in the rent-escalation clause.
Model Tenancy Act 2021 (central model act); state adoption required for enforceability
MTA: 24-hour landlord entry notice (best practice)
The Model Tenancy Act recommends landlords provide 24 hours' written notice before entering the property for inspections or repairs, during daylight hours only. NOTE: The MTA is a central model act — enforceability depends on state adoption. This is a strong best practice for tenant privacy regardless of adoption status. Include this restriction in the use-of-property or maintenance clause.
Model Tenancy Act 2021 (central model act); state adoption required for enforceability
MTA: Eviction after 2 months non-payment (best practice)
The Model Tenancy Act recommends that eviction for non-payment of rent be allowed only if rent is unpaid for at least 2 consecutive months AND the landlord has served proper legal notice. NOTE: The MTA is a central model act — state-specific Rent Control Acts may have different eviction thresholds. Regardless, avoid drafting termination clauses that allow eviction for a single missed payment — the 2-month standard is a strong best practice.
Model Tenancy Act 2021 (central model act); state Rent Control Acts may apply
MTA: Rent Tribunals for disputes (where adopted)
The Model Tenancy Act establishes Rent Authorities and Rent Tribunals as fast-track forums for landlord-tenant disputes. NOTE: These bodies exist only in states that have adopted the MTA. In states that have adopted it, mention the Rent Authority/Tribunal as the primary dispute forum for residential tenancies. In other states, use the standard civil court / arbitration approach.
Model Tenancy Act 2021 (central model act); state adoption required for Rent Authority/Tribunal
GST on commercial vs residential rent
GST applies to commercial property rent. Residential rent by individuals for personal use is exempt. Factor GST into the rent clause for commercial leases.
Section 7, GST Act 2017
Leave & Licence in Maharashtra
In Maharashtra, most residential arrangements are Leave & Licence agreements under the Maharashtra Rent Control Act, not standard leases. The legal framework, tenant protections, and eviction grounds differ significantly.
Maharashtra Rent Control Act 1999
RERA disclosure for new developments
For commercial leases in RERA-registered developments, the builder's RERA obligations and disclosures may affect the lease terms. Verify RERA registration status.
RERA 2016