What is a Lease Agreement?
A Lease Agreement is a legally binding contract between a property owner (lessor) and a tenant (lessee) that outlines the terms and conditions of renting a residential or commercial property for a fixed duration—usually 11 months or longer. It protects both parties’ rights and responsibilities under the law.
Why is a Lease Agreement Important?
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Legally secures the interests of both landlord and tenant.
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Clearly defines rent amount, payment dates, security deposit, and duration.
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Prevents future legal conflicts or eviction issues.
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Required by courts, banks, and utility companies as address proof or agreement proof.
What Does a Lease Agreement Include?
- Details of the landlord and tenant
- Property address and type (residential/commercial)
- Rent amount, payment mode & due date
- Lease term (usually 11 months or more)
- Clauses on renewal, notice period, deposit, and restrictions
Documents Required for Lease Agreement
- ID Proof of both landlord and tenant
- Ownership proof of the leased property
- Electricity or tax bill (as address proof)
- Stamp paper (as per state law)
- Two witnesses with ID proof (for registration)
Who Needs a Lease Agreement?
- Property Owners leasing their space
- Tenants looking for legal protection
- Businesses renting offices, shops, or godowns
- Students or working professionals living in PGs / flats
When is Lease Agreement Required?
- Before giving or taking any property on lease or rent
- While applying for police verification or government utilities
- During address proof submission for banks or KYC
- When renewing or modifying existing rental terms
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