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Create Rental Deed/Agreement
A team of leagl expert will draft your rent agreement or deed in 1 day. You don’t have to go anywhere. 100% online process. Get ready your rent agreement today.
Difference between Rent/Lease vs Leave and license
- Rent/Lease Agreement
- • Grants exclusive possession of immovable property to tenant
- • Eviction is not easily achieved
- • Governed by rent control act
- • Not revocable by the landlord
- • Stamp duty is higher
- • Creates heritable rights
- • Creates property rights for tenant
- • Is transferable and termination is not easy
- Leave and license Agreement
- • Provides only a permission to occupy a certain property
- • Makes eviction easier
- • Governed by Indian Contract Act
- • Revocable by the landlord
- • Stamp duty is lower
- • Does not create heritable rights
- • No property rights are created
- • Is not transferable and termination is easy
Frequently Asked Questions
Rental agreement is actually a contract between two parties. One is the owner of a property and the other one is the tenant, when he wants to have possession of the owner’s property for a certain period of time. A rental agreement is also called a rent deed or lease deed. The agreement contains the details of the property, the owner’s name and the tenant’s name, the term of the rent or lease and the monetary amount of the rent for the said period of time.
Usually most of the agreements are signed for 11 months in order to avoid stamp duty and other charges. As per the registration act, 1908 the registration of a lease agreement is essential in case of the lease term is more than 12 months. Once the agreement is registered, stamp duty and registration fee have to be paid for the same. For example, in Delhi, for a lease up to 5 years, the stamp paper value is 2% of the average annual rent. If a security deposit is a part of it, then add a fee of Rs 100. For a lease of more than 5 years and less than 10 years, the cost is 3% of the annual average rent. For a lease of more than 10 years and less than 20 years, the cost is 6% of the average annual rent. The stamp paper can be made under the name of the tenant or the landlord. Also, a registration charge of Rs 1,100 has to be paid by demand draft.
Terms commonly included in a Rent agreement
- Duration: The rent agreement will be effective for this period.
- Rent: The amount of payment made by the tenant to the landlord for the specific property.
- Lock-in period: Either party can not terminate the agreement during this lock in period. It is the minimum duration to make sure neither party changes its mind and backs out after the agreement is issued and other party faces loss. This lock in period must be specified in the agreement.
- Deposits: TThe deposit amount is required for rental agreement. The purpose of the deposit and conditions of return of the deposit after the completion of rental period is mentioned in the agreement.
- Terms of Use: The purpose of the rent of the property, terms and conditions regarding the usage of the property.
- • Utilities: The utilities that are included in the rent and the utilities the tenant is responsible for.
- • Insurance: If the tenant is bound to insure the property. This term is often used in commercial rental agreements.
- • Repairs and Maintenance: Whether the landlord or the tenant- which party is responsible for the repairs and the maintenance of the property.
Drafting Partnership Deed Online
A team of lawyers from Online Legal India will draft your partnership deed online. No need to visit office. 2000+ Lease agreement drafted by expert team.
Various partnership deeds and their features
- General Partnership (GP)
- General partnership can be easily created.
- State filing not required in general partnership and can be created once the business activities start.
- Operational cost is low and Formation filing fee, state fees or franchise tax is not required.
- General Partnerships are include business license and permissions necessary for business operations.
- Less ongoing requirements as it does not require annual meetings.
- General Partnership Agreements defines the management of partnership, partner roles, termination clause and other important aspects.
- General partnerships helps in keeping individual assets and business assets separate.
- Limited Partnership (LP)
- General partners have unlimited liability.
- Limited partnership requires one business partner to have unlimited obligation who is also the general partner(s).
- Limited partners have restricted liabilities towards their personal assets, and they cannot use it for debts.
- The liability amount is limited for investment in limited partnership.
- Management does not include limited partners and general partners monitors the daily operations.
- The projects are short term. Limited partnerships involves special businesses like films, real estate planning and family estates.
- limited liability partnership (LLP)
- Business services are professional. Limited liability partnerships are created by specific specialized service businesses. These expert services include attorneys, accountants, doctors, architects, and other professionals.
- Protection of personal assets. Personal assets under LLP cannot be used to fulfil business obligations and responsibilities. LLP does not protect the business partners from personal liabilities. If partners are found of personal malpractices, LLP can not help themin reducing the liabilities.
Frequently Asked Questions
In order to understand the partnership deed, the buyer and the owner should acknowledge the existence of this particular deed. While commencing a business deal accompanied by more than two partners, they should map their shares of profit and losses into a written contract also known as partnership deed or agreement.
The collaboration of these business partners agreed by the partnership deed is often termed as partnership firm.
When partners have a partnership deed it helps them with legal responsibilities towards the firm. Partnership deeds do not require registrations and can be used anyway.
Benefits of a well contracted partnership deed:
- It adjusts and balances the privileges, duties, and responsibilities of all partners
- It helps in preventing any confusion and misinterpretation between the partners as all the clause of the alliance have been pre-contracted
- It helps in settling disputes between the associates by referring to the points mentioned in the deed.
- It clears uncertainties in terms of profits and losses ratio between partners.
- It decides the exact job roles and each partner have their clear set of tasks.
- Partnership deed contain articles that simplifies the salary (remuneration) to partners and the interests for partners who invested capital in the business.
It is advisable to have a well-drafted partnership deed instead of oral contracts.
Draft A Sale Deed Online
Types of sale deed
| Points of difference | Agreement of sale | Sale deed |
| Sale deed | It implies the future transfer of the property | It signifies an immediate transfer of the property titles |
| Risk involved | Risk/liabilities remain with the seller until the property is transferred in future | Risk is immediately transferred to the new buyer |
| Contract | It is an executory contract. An executory agreement is one which has not been fully implemented | It is an executed contract |
| Violation | Breach of sale may result in a suit for damages | Sale breach results in a legal complaint as well as monetary compensation for damages |
| Registration | It is not mandatory to register agreement of sale. However, norms may differ across States | It is mandatory to register a sale deed |
Frequently Asked Questions
Sale Deeds are important legal functionalities that come in form of documents and incorporated between the purchaser and seller. Sale Deeds are executed during property purchasing or real estate transactions. The sides participating in a sale deed are often termed as grantee or grantor pertaining to legal expressions. Sale Deeds include the ownership transference from the seller to the buyer (as per the pre-determined favorable clause) and the purchaser continues to be in the complete possession of the property.
The collaboration of these business partners agreed by the partnership deed is often termed as partnership firm.
Sale deeds are crucial during any property deals. It is like a right to agreement over the deals that are pre- determined and to be followed by either parties i.e. the buyer and seller. In order to process a sales deal, the documents required are proof of identity of both parties, ownership proof and other important documents. It margins the purchasing rights of the buyer and provides legal rights. Sale deeds are mandatory for establishing property claims. All pending documents such as taxes, electricity/water charges are to be included in the sales deed.
Sale Deed Can Be Made for:
- Vehicle: Car & Bike
- Lands: Agricultural, Commercial & Vastu
- Property: Commercial & Residential
- House
- Business
- Transfer Shares
- Draft of Sale Deed/Title deed/Conveyance Deed
- 7/12 extract or RTC (Records of Rights and Tenancy Corps) Khata Certificate and Extracts
- Joint development agreement, GPA, & Sharing/supplementary Agreement, between land owner and builder
- Power of Attorney if any
- Building plan sanctioned by the Statutory Authority
- Allotment Letter from the Builder/Co-Operative Society/Housing Board/BDA.
- If any loan on the property (Current or past) / Original Property Documents with Bank
- Sale agreement with the Seller
- All title documents of land owner
- A Copy of all registered previous agreements (in case of resale property)
- NOC from Apartment Association (in case of resale property)
Lease Agreement/Deed Drafting
Difference between Lease and Sale
| Lease | Sale |
| The tenant is able to enjoy only the rights to use the property. | In this case, the buyer gets the whole right of ownership of a property. |
| Except on the condition of perpetuity, the lessee rights to process the property comes to an end once the lease is terminated. | There is no limit for usage of the property. |
| The money is paid like a premium or on specific intervals. | The cost of the property is paid one time. |
| The lessee can only enjoy the use of the property. A transfer of lease is allowed in most cases though the ownership rights to the property lies with the lessor. | Buying a property allows the buyer to enjoy the freedom selling the property in future. |
| A lease is much cheaper. | The purchase amount is higher than the lease cost of the same property. |
| The lessee cannot have the residual value of the property. | The residual value of the property can be transferred to the buyer. |
| The documents of the lease are known as lease agreement or deed of the lease. | Sales generally involve agreement of sell, deed of conveyance, sale deed etc. |
Frequently Asked Questions
According to Transfer of Property Act, Section 105, Lease is defined as a handover of a right to claim property, land or estate for a particular period of time or in permanence. Owning a lease comes with the respect of an amount paid or agreed upon, a share of commodities (or any other form of supplies), service and any valuable payback. This share is redeemed periodically or during certain occasion from the leaseholder to the lessor as per agreement. In order to understand ‘lease’, one should first come to realize the below terms:
- Lessor the lease provider (property owner) will have complete authority over the property which is then handed over to the lessee
- Lessee the lease holder who obtains the entitlements to make use of and possess the property on contract from the Lessor
- Duration the period of time against which the lessee possesses the property rights is also known as ‘duration’.
- Premium or Rent is the amount or share required for permitting the rights to use and utilize the estate and paid periodically or at one time (as per the agreement). This amount/kind is also paid in intervals hence called rent.
The lease agreement is basically a contract between a lessor or landlord and a lessee or tenant in a written format which indicates that the lessor will get a periodic payment from the tenant in exchange of allowance for using and occupying his property.
A lease agreement is usually required when a property is leased for a long span of time period which generally ranges between 1 to 5 years or longer than that. In such kinds of cases, a lease agreement plays a vital role to govern the equation between the landlord and the tenant and also implements the provisions that bind them legally.
An expert documentation lawyer should draft a lease deed. He can understand the requirements of both the parties and henceforth draft an unbiased agreement to protect the interest of the landlord as well as the tenant
Key Contents of a Lease Deed in India
There are certain important provisions that should be included in every lease agreement in India are as follows-
- Description of Property: The deed should contain the description of the property such as area, location, structure, address, and other information.
- Duration: The lease agreement should clearly state the time span for which the validity of the lease will be in force. This provision might also include the information about the renewal of lease deed in case the parties want to continue with the contract.
- Rent, Maintenance, and Security: The lease deed must clarify the rent amount, payment mode, due dates, security deposits, interest for payment delay etc. It should include the information regarding the maintenance charges, society charges and utility bills etc.
- Termination of Lease: The deed must indicate or include the reasons behind the termination of the agreement. It might include breach of the deed, illegal acts in the property, failure to pay the rent, nuisance created by the lessee etc.
- Subletting: The lease deed must include the information about whether the tenant is able to sublet the property or not.
- Dispute Resolution: It must be mentioned in the deed that the menner in which the legal dispute arising between the parties out of breach of the agreement and how it will be dealt with. It may consist ADR process such as Arbitration.
- Applicable Laws: In this provision it will be stated that the laws which are applicable over both the parties in case of dispute and which court will be having the jurisdiction to deal with such cases.
Draft Joint Venture Agreement
Benefits of a Joint Venture
- New insights and expertise
- Better resources
- It is only temporary
- Both parties share the risks and costs
- Joint ventures can be flexible
- There are ways to exit a joint venture
- You will know what’s yours and will be able to sell it
- You are more likely to succeed
- You will build relationships and networks
- Your potential will virtually be limitless
- You get to save money by sharing advertising and marketing costs
- International joint venture eradicates the risk of discrimination
Frequently Asked Questions
A joint venture is basically a tactical partnership in which two or more than two companies or individuals decides to put in products, services and capital to establish a commercial project.
The main key for success in joint venture in India is the compatibility and understanding between the contracting parties.
The associated parties must aim for a goal together and the conditions must be written in the clauses of Joint Venture Agreement. This can maintain the success of the collaboration in Indian scenario.
- Two or more parties must have the intension of getting involved in a partnership or a venture.
- Both the parties invest in the venture or according to the agreement.
- Each party is assigned with duties and rights as per the partnership.
- The terms of the agreement define the venture or the partnership that includes the agreement span and the share of the parties.
The two options available for establishing a joint venture in India are:
- Contractual joint venture
- Equity based joint venture