Lease Agreement Format India: Long-Term Lease Deed

For any term exceeding one year in India, the lease agreement format is a written, stamped deed, executed by both landlord and tenant and registered at the Sub-Registrar, under the Transfer of Property Act, 1882 and the Registration Act, 1908. The format adds what an 11-month agreement skips: renewal option, rent escalation, lock-in and registration costs.

If your arrangement is 11 months or shorter, you do not need the deed described here; use our free 11-month rent agreement format instead. This page is for landlords and tenants of homes and shops who want a lease deed for two, three, five years or longer. It is general information, not legal advice.

Lease agreement format: the short answer

Section 107 of the Transfer of Property Act, 1882 says that a lease of immovable property from year to year, for any term exceeding one year, or reserving a yearly rent can be made only by a registered instrument, and that a registered lease instrument must be executed by both the lessor and the lessee. Section 17 of the Registration Act, 1908 is the provision under which such documents are compulsorily registrable. Three practical consequences follow for the long term lease agreement format:

• It is a deed, not an informal letter: title, recitals, numbered clauses and property schedules.
• It is stamped before or at execution, at the rate your state's stamp law sets for leases.
• It is signed by both sides and presented to the Sub-Registrar, so the registered lease agreement can be relied on as evidence later.

Lease, rent agreement or leave and licence: which document you are writing

In everyday Indian usage, "rent agreement" generally refers to a short residential letting, while "lease deed" signals a longer, registered transfer of the right to occupy. A leave and licence gives only permission to use the premises, without a lease interest; in Maharashtra, the Maharashtra Stamp Act charges it under Article 36A. Under that article, a leave and licence for more than sixty months attracts the same duty as a lease under Article 36. For short-term documents, see our rent agreement formats in Word and PDF; this page stays on the multi-year lease deed format that landlords and tenants in India need. For the full comparison, see leave and licence vs rent agreement.

When a lease must be registered, and what happens if it is not

Terms over one year

The trigger in Section 107 is a lease from year to year, for a term exceeding one year, or reserving a yearly rent. If you need a lease agreement format for more than 11 months, check the term: once it runs beyond one year, the lease falls inside that rule. Leases outside it, such as a monthly tenancy, may be made by a registered instrument or by an oral agreement accompanied by delivery of possession. That is why 11-month agreements fall outside the Section 107 registration trigger; check whether your state's law adds its own registration requirement.

Stamping is a separate duty from registration. Under the Indian Stamp Act, 1899, Section 17, chargeable instruments must be stamped before or at execution. Under Section 35, an unstamped instrument is inadmissible in evidence unless the duty and a penalty (Rs 5 or ten times the deficit, whichever is higher) are paid. States with their own stamp acts, such as Karnataka and Maharashtra, set their own lease rates and penalties.

Section 49: what an unregistered lease can and cannot prove

Section 49 of the Registration Act, 1908 states that a document required to be registered under Section 17 that is not registered does not affect the immovable property comprised in it and cannot be received as evidence of a transaction affecting that property. A proviso allows it as evidence of a collateral transaction. In plain terms, an unregistered three-year deed is not enforceable as a three-year lease. For the registration process and fees, see how to register a rent agreement.

Long-term lease deed format: clause by clause

The skeleton below gives structure and placeholder wording, not a finished document. Adapt it to your property and your state's rules, and have the final version checked before execution.

Title, date, parties and recitals

"LEASE DEED. This Lease Deed is made at [city] on [date] between [lessor name, age, address, ID] (the Lessor) and [lessee name or firm, address, ID] (the Lessee)." Recitals then state that the Lessor owns the premises described in Schedule A and has agreed to lease them to the Lessee for the term and rent set out below. Name every co-owner as a lessor.

Property schedule

Schedule A describes the premises: survey or municipal number, floor, built-up or carpet area as shown in title papers, boundaries and parking. Schedule B lists fittings and fixtures handed over, with their condition. Both schedules are signed with the deed.

Term, renewal option and lock-in

"The lease is for [number] years commencing [date]. The Lessee may renew for a further [number] years by written notice given [number] months before expiry, on terms set out in Clause [x]." A lock-in period clause states the period during which neither side (or only one side) may terminate, and what is payable if someone exits early. Write renewal as a clear option with stated terms rather than leaving it "to be discussed".

Rent, escalation schedule and deposit

State the monthly rent, due date, payment mode and a rent escalation schedule, for example a fixed percentage every [number] months, written as a table of amounts for each year so nobody has to calculate it later. Record the security deposit, whether it is refundable, the refund timeline and permitted deductions. In Karnataka, the deposit counts as money advanced in the stamp duty base, so record it accurately.

Maintenance, repairs and alterations

Separate structural repairs from day-to-day upkeep and say who handles each, name who pays society or maintenance charges and property tax, and require written consent before alterations. For long terms, add who owns improvements on exit.

Assignment, subletting and use

Specify the permitted use (residence, retail, office), whether the lessee may sublet or assign, and any requirement for the lessor's written consent. For a shop, cover signage, trading hours set by the building, and licences the lessee must obtain.

Termination, default and handover

List default events, the cure period after written notice, early-termination rights after lock-in, the notice period for each side and the handover condition. Add a joint inspection on handover against Schedule B.

Costs, stamp duty, signatures and witnesses

Say who bears stamp duty and registration charges. Delhi's Department of Revenue states that in a lease or rent deed stamp duty is payable by the lessee, so if the parties agree to share it, say so expressly. The deed ends with signatures of both parties on every page and on the execution page. Two witnesses with names and addresses is standard practice.

11-month agreement vs registered long-term lease

A multi-year arrangement needs its own format, not a stretched 11-month template:

Stamp duty on leases over one year: official examples

Stamp duty on a lease deed, paid before registration, is set by each state. The rows below come from the official schedules named in the source column; verify the current rate before you buy e-stamp paper, which in many states is issued through StockHolding Corporation of India (SHCIL).

Karnataka

Hypothetical example, for illustration only: a three-year residential lease at a flat Rs 20,000 a month with a Rs 1,00,000 refundable deposit. Average annual rent is Rs 2,40,000. Adding the deposit as money advanced gives Rs 3,40,000. At one rupee per Rs 100, duty is Rs 3,400. If the rent escalates, the average annual rent changes, so work from your actual schedule.

Telangana

Same hypothetical lease: average annual rent Rs 2,40,000 at 0.50% gives stamp duty of Rs 1,200. Check the Telangana Registration and Stamps ready reckoner for how deposits and registration fees apply to your term before you buy stamp paper.

Maharashtra: leave and licence over 60 months

Up to sixty months, Maharashtra charges a leave and licence at 0.25% of the base described above. Beyond sixty months, IGR Maharashtra's schedule charges it as a lease under Article 36, so a leave and licence for more than sixty months is stamped at the same rate as a lease.

Residential vs shop lease: format differences

The clause skeleton is the same, but emphasis shifts. A residential lease focuses on occupants, pets, society rules, furnishing schedules and quiet enjoyment. A lease agreement format for shop premises needs a permitted-trade clause, signage rights, fit-out periods, responsibility for trade licences, longer lock-in and an escalation table, and rules on assignment if the business is sold. For GST and TDS points on shop and office lets, see our commercial rent agreement format.

One point applies to both: notarisation is not registration. A notarised lease for three years does not satisfy Section 107. Our notary rent agreement format guide explains where notarisation fits, which is for short agreements, not multi-year leases.

How to execute and register a long-term lease

1. Agree the commercial terms. Term, rent, escalation, deposit, lock-in and renewal.
2. Draft the core terms. The free rent agreement generator builds a fixed-term or month-to-month agreement PDF in your browser (all data stays in your browser, nothing is uploaded). Use it to settle parties, premises, rent, deposit, late fee, utilities, notice and governing law, then adapt that draft into the deed skeleton above.
3. Buy stamp paper. Pay duty at your state's lease rate on e-stamp paper before or at execution.
4. Execute. Both lessor and lessee sign, with two witnesses as standard practice.
5. Register. Present the stamped, signed deed at the Sub-Registrar office with the documents your state requires.

The site does not stamp or register documents. Draft your terms with the free generator, turn them into a stamped deed and register it at the Sub-Registrar; for 11 months or less, use the 11-month format linked above.

This article is general information, not financial, tax or legal advice. Figures are approximate and change over time — always verify with a qualified professional or the official source before making a decision.

Written and reviewed by the Rent Agreement Generator editorial team. Facts checked against primary sources; see the reference above.

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