Lease Under Transfer of Property Act

LEASE, UNDER TRANSFER OF
PROPERTY ACT, 1882

SECTION 105- LEASE
SECTION 106- IF THERE IS ABSENCE OF
DURATION
SECTION 107- EXECUTION OF LEASE
SECTION 108- RIGHTS OF LESSER LESSE
SECTION 111- TERMINATION OF LEASE
LEASE- DEFINITION UNDER
SECTION 105
It is a transfer of immovable property for a particular time period for a
consideration of which the transferee has accepted the terms surrounding the
agreement.
A lease of immoveable property is a transfer of a right to enjoy such property,

made for a certain time, express or implied, or in perpetuity, in consideration of
a price paid or promised, or of money, a share of crops, service or any other
thing of value, to be rendered periodically or on specified occasions to the
transferor by the transferee, who accepts the transfer on such terms.
Lessor, Lesse, Premium , Rent

The transferor is called the lessor, the transferee is called the lessee, the
price is called the premium, and the money, share, service or other thing to
be so rendered is called the rent.
ESSENTIALS OF LEASE- 4P’s
PARTIES
POSSESSION
PREMIUM
PERIOD
WHAT HAPPENS WHEN TIME PERIOD IS NOT
PRESCRIBED IN LEASE AGREEMENT? Section 106
Section 106 provides for the duration of the lease in the absence of
the lease agreement. It lays down that in the absence of a contract,
lease can be ended by both parties to the lease by issuing a notice to
quit.
There is a distinction of two purposes in regard to Section 106 i.e.
Agricultural or manufacturing and other purposes.
a) When a lease for Agricultural or manufacturing purpose is
deemed to be of year to year, then it will attract a 6-month notice
that the lease will end on the expiry of 1 year from the date of the
commencement of the lease.
b)When a lease for any other purpose is deemed to be of the month
to month, then it will attract a 15-day notice that the lease will end
on the expiry of 1 month from the commencement of the lease.
EXECUTION OF LEASE- SECTION 107
When there is a lease of Immovable property for
a term of 1 year or more – This can only be made by
a registered deed.
All other leases of Immovable property – Can be either
made by a registered deed or an oral agreement or
settlement along with the transfer of possession of that
property.
When the lease is of multiple properties that require
multiple deeds, it will be made by both the parties of
the lease.
RIGHTS OF LESSOR AND LESSE
LESSOR:
1. Right to recover the rent.
2. Right to take back the possession on breach of any condition.
3. Right to recover the damages if the property is damaged.
4. Right to take back the possession of property on termination
of lease.
LESSE:
1. Right to deduct the expenses made on the property. Section
108 (f)
2. Lesse has a right to detach all the things. Section 108(h).
3. Section 108(j) Lessee having a right to transfer the property
absolutely or any part of his interest by the way of sub-lease
or through mortgage.
LEASE AND LICENSE
A lease is a transfer of an interest in a specific
immovable property, while licence is a bare permission,
without any transfer of an interest.
2. A lease creates an interest in favour of the leassee

with respect of the property, but a licence does not create
such an interest.
3. A lease is both transferable and heritable, a sub

tenancy can be created by the tenant and on the death of
the tenant, the tenancy can be inherited by his/her legal
heir, whereas, licence is neither transferable nor
heritable
TERMINATION OF LEASE –SECTION 111
Lapse of time – When the prescribed time of the lease expires, the lease is
terminated.
Specified event – When there is a condition on time of lease depending upon
a happening of an event.
Interest – Lessor’s interest to lease the property may cease, hence resulting in
the termination of the lease.
Same owner – When the interest of both lessor and lessee are transferred or
vested in the same person.
Expiry of Notice to Quit – When the notice to quit by the lessor to the lessee
expires, the lease will also expire.
(Notice to quit is a formal written statement that is issued to the lessee if the
lessor desires to end the lease agreement, whether on the expiry of the
duration as stated under Section 106 or on grounds specified in Section 111.)
Any lease can be forfeited , by acceptance of the notice to quit.
Express Surrender – This happens when the lessee ceases to
have an interest in the property and comes into a mutual
agreement with the lessor.
Implied Surrender – When the lessee enters into a contract
with another for the lease of property, this is an implied
surrender of the existing lease.
Forfeiture – There are three ways by which a lease can be
terminated:
When there is a breach of an express condition by the lessee.
The lessor may get the possession of the property back.
When lessee renounces his character or gives the title of the
property to a third person.
When the lessee is termed as insolvent by the banks, and if
the conditions provide for it, the lease will stand terminated.
WAIVER OF FORFEITURE
Section 112, states that if the lessor after initiating the
process of termination of the lease on the grounds of
forfeiture accepts any rent from the lessee, it will be
understood that the lease will still exist and the
termination and notice to quit has been waived.
Conclusion:
Lease is a very important aspect of real life. Every
person has witnessed a lease deal involving renting of
a house, car or etc. Therefore it is important for the
general public to know about the rights of every
individual in a lease, and to know about the provisions
that govern lease. The lease is mentioned from
Sections 105 to Section 117, out of which Sections
which may help the general public, law students and
the legal fraternity have been discussed in this article
to give clarification and a basic idea about the lease.

Lease Under Transfer of Property Act

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LEASE, UNDER TRANSFER OF

PROPERTY ACT, 1882

A lease of immoveable property is a transfer of a right to enjoy such property,

Lessor, Lesse, Premium , Rent

2. A lease creates an interest in favour of the leassee

3. A lease is both transferable and heritable, a sub

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