Lease deed is a legal agreement between the two parties. This agreement follows the terms and condition strictly. As per section 105 of the transfer of property act 1882, a lease of steady property is a transfer of a right to enjoy property.

Lease basically describe terms of contract like

Period of lease

Amount of lease

Conditions

• Operative Part

1. Testatum - all details and description of deed

   E.g., that the lesor agrees to lease out the land numbering located in........ (place) ........ in the district of ........ to the lessee with effect from ........ for a period of five years on payment of monthly rent ........ of rs.......... payble on fifth day of each month in advance.

2. Exception and reservation – when the parties have some exception and reservation they shall clearly mention in the deed.

   E.g., shall give the notice of his intention to the lessor or vacant the leased at the expiry of the period started in the notice.

3. Covenant – in this part describe the both parties promises.

   E.g., that the lessee shall deliver the peaceful vacant possession of the lease land to the lessee at the termination of the period of lease.

• Formal Part

1. Testimonium – in here describe the deed period and extra last condition.

   E.g., default in payment of rent for four consecutive months shall entitle the lessor to enter upon the said land and determine the lease.

2. Signature – here the witness and both parties signature are very impotent.

   E.g., IN WITNESS WHERE OF, the lessor and the lessee have signed this deed on the day and year first above stated

   WITNESS SIGNATURE……………………………............
   LESSOR SIGNATURE…………………………………......
   LESSEE SIGNATURE……………………………………...

3. Parcel – it basically summary of the deed.

   E.g., lease is a contract between lessor and lessee whereby lessor allows the lessee to use his owned property and lessee acquires the right to use the property.

   Terms of contract like period of lease, amount of rent etc are contained in a lease deed duly executed and signed by both the lessor and lessee.

• Non Operative Part

1. Name of the deed – it should be block letter. It is also known heading of the document.

2. Date and place – date and place should be clearly mentioned in the deed.

3. Description of the parties/companies – clearly mention lessor and lessee all details like name, address or company name and address.
   E.g., some part of the lease deed draft which cover the portion like name of the deed, date and place, description of parties.

   THIS DEED OF LEASE of land made on ..... (place) ........ day of (date) ....... between “A” S/O ............. R/O ........ (hereinafter call the lessor) AND “B” S/O ............. R/O ................ (hereinafter call the lessee)

4. Recital – this part of deed described the terms and condition and details description of property, it’s like a short story and written should be start where.
   E.g., some part of the lease deed draft which cover the recital part
   Whereas both the lessor and lessee agree to the following terms and conditions.
   That the lessee agrees to take the aforesaid piece of the land on lease .he shall pay the rent hereby reserved in the manner herein before stated.
   That the responsibility to pay all rates, taxes and charge which are payable or may so became at a future date in respect with lease land , shall rest upon the lessor.

• Governing law and jurisdiction

1. The validity, construction and work of this Deed shall be construed and the legal relations between the Parties yet shall be determined and governed according to the laws of India.

2. The Parties agree to the jurisdiction of the courts.