Construct Link Lease For Free

As per the requirements of the Registration Act 1908, registration of a property, on lease for a year is obligatory. Therefore, to skip the tedious process of registration, the rent agreements are usually drafted for a period of eleven months.

Minimum lease payments refer to the lowest anticipated amount a lessee is expected to pay over the course of a leased asset or property. Present value calculations are utilized to discount future lease payments in order to properly account for the time value of money.

Mandatory Registration: Rental Agreements created for more than 11 months need to be properly registered with the authorised court. The ones not registered cannot be considered legal. In case of any dispute, both parties may need to pay a certain amount of penalty for not having the document registered.

The owner shall have rights to terminate the tenancy if the tenant fails to pay the rent regularly for a consecutive period of two months or commits breach of any of the terms herein and take possession for the premises without notice.

A property can be leased out for a period of time between 30 years to 99 years. 99 years lease is basically if anyone has purchased the land as a 99 year leasehold, that person will be the owner of the property for 99 years only after that the land will be given back to the original land owner.

A lease is classified as a finance lease if it transfers the ownership of assets to the lessee. The example of finance lease may be the car lease in which lessee makes periodic payments to the lessor and after a specific period of time say after five years, the possession of car is transferred to the lessee.

In India, there are two different kinds of rental agreements, one of which is a lease with a minimum term of 12 months. Rent Control Laws established by the State Government regulate this. The other kind is a lease and license contract that lasts up to 11 months and is exempt from rent control laws.