Example of Residential Lease



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This is a standard residential lease agreement in India.  Notice that the language is heavily weighted towards the landlord.

This Agreement of Lease is made and executed on …….………..(Day/Date/Year)

BETWEEN

Individual A, aged …….., s/o……., residing at………….., hereinafter referred to as the LESSOR (which term shall mean and include his/her successors, legal representatives, legal heirs, executors, administrators and assigns) of the First Part

AND

Individual B, aged ……., hereinafter referred to as the LESSEE (which term shall mean and include his/her successors, legal representatives, legal heirs, executors, administrators and assigns) of the SECOND PART.

WHEREAS the LESSOR is the full and absolute owner in possession of the residential flat/villa bearing number ………….,more fully described in Schedule I to the Agreement and various items of furniture, fixtures and fittings located therein more fully described in Schedule II to the Agreement (both Schedule I and Schedule II hereinafter referred to together as “Scheduled Premises”).

AND WHEREAS the LESSEE proposes to take the Scheduled Premises on Lease for the temporary period as per this Agreement as residential premises for the sole benefit of himself and his immediate family, and the LESSOR has agreed to grant on Lease the Scheduled Premises for a period of Eleven plus Eleven months commencing from ………..and …………, and ………. to ……… for the exclusive use by the LESSEE’s and his immediate family as residential premises only.

AND WHEREAS the LESSEE and LESSOR, hereinafter referred to as the “Parties” or “Party” are desirous of reducing the terms and conditions mutually agreed to between them relating to the Lease Agreement into writing:

I.  NOW THEREFORE THIS AGREEMENT WITNESSETH AND THE PARTIES HERETO AGREE AS FOLLOWS –

1.  The Lessee shall be occupying the premises starting commencing from …(date).
2.  That in consideration of the rents hereby reserved and agreed to be paid by the LESSEE and of the terms and conditions and of the covenants of this Agreement to be observed by both Parties, the LESSOR hereby grants and demises to the LESSEE the Scheduled Premises on Lease and the LESSEE hereby takes on Lease the Scheduled Premises to the extent as stated above and agrees to hold the Scheduled Premises on Lease for a period of 11 months (Minimum Period: …..to…..) starting from …..(date),  with an option to renew the lease for an additional 11 months (Second Period: …. to ….).  The Lessee reserves the sole right to exercise the option to enter into the Second Period lease. 
3.  On or before taking possession of the Scheduled Premises, the LESSEE shall have paid to the LESSOR a sum of INR………- only (In words…….), by way of “security deposit” for the due performance by LESSEE of his/her obligations under this Agreement, and the LESSOR shall provide an acknowledgement confirming receipt therefor.  The said security deposit shall not carry any interest and shall be refunded to the LESSEE by the LESSOR at the expiry or early termination of this Agreement at the time of handover of vacant possession of Scheduled Premises by LESSEE to LESSOR. Such refund shall be after adjusting for any sums towards damages caused by the LESSEE and/or family and to be borne by LESSEE per Clause II (i).
4.  For the initial period of Lease, the LESSOR shall be entitled to receive a rent of INR……(in words) per month.  For the first month only, the rent will be prorated, if applicable, to an amount equal to INR…….
5.  For the second period, from …. to …., the LESSOR shall be entitled to receive a rent of INR …. (in words) per month, representing an escalation percentage of ….
6.  The monthly rents as above shall be subject to tax deduction at source at the appropriate rate and only if all such deductions will be accompanied by issue of Tax Deducted at Source (TDS) certificates. This clause does not apply to the current lease because the lessee is not a corporate account.  If it is company lease contract then the TDS will be applicable, for general agreement its not required.
7.  The monthly rent shall be paid by the LESSEE on or before the 5th of every month by direct deposit into the ABC Bank (Provide bank details here) of the LESSOR. The LESSEE shall not be entitled to make any deductions from the monthly rent unless expressly as provided for in this Agreement.  Alternately, the lessee agrees to pay rent by cheque, by post, which will be post-marked before the 3rd of each month. 


II.  The LESSEE hereby covenants with the LESSOR as follows –

8.  The Scheduled Premises shall be used exclusively by the LESSEE for the purpose of residence of himself and immediate family only and shall not be used for any other purpose.
9.  Notwithstanding anything to the contrary contained in this Agreement the LESSEE shall at all times ensure that himself and all members of his family will abide by the rules and regulations of the (Mention name of Home Owners Association (HOA) here) and or their property managers.
10.  To adhere to the rules and regulations regarding maintenance of common area facilities and amenities of the HOA and at all times be responsible for repairing any damage caused by LESSEE to such common area facilities and amenities.
11.  The Lessee shall pay the rents promptly as stipulated above so as to be credited into the LESSOR’s bank account on or before the 5th day of respective month i.e. deposit the rent in advance for the month.
12.  The Lessee should maintain the Scheduled Premises in good and proper condition subject to normal wear and tear.
13.  The Lessee shall pay the charges directly to the concerned authorities for water, electricity consumed and telephone charges as per the bills provided by the relevant service providers and in line with the relevant meter readings maintained in respect of the Scheduled Premises.
14.  The Lessee shall pay directly to the concerned persons any charges that may be levied for use of club house services and amenities and or any other facility available in (Mention name of apartment/villa community).
15.  The community charges an annual maintenance fee of INR………calculated at the rate of INR ………per SFT for the …..SFT area of the premises. 
The maintenance fee covers the following services: __________________________________________
The Lessee agrees to pay the entire annual maintenance fee - for a period of 12 months - to the Lessor at the time of move in.  If the Lessee terminates the rental agreement before the 12 month period is completed, the Lessor agrees to refund the maintenance fee to the Lessee on a prorated basis. 
This clause applies should the Lessee decide to exercise the option to extend the lease to the second period.  The applicable maintenance fee for the second period will be paid by the Lessee during option renewal.
16.  To maintain all furniture and fixtures as also all electrical, water, sanitary and any other installation/fittings/fixtures in the Scheduled Premises in good and proper working condition.  The LESSEE hereby undertakes to replace/repair any furniture or fixture or any electrical, water, sanitary or any other installation, fitting or fixtures that may be damaged or broken during the LESSEE’s occupancy of the Scheduled Premises.  The LESSEE hereby authorizes the LESSOR to deduct from the interest free security deposit lying with the LESSOR the cost of replacing or repairing any damaged or broken installation/fixture/fitting (fair wear and tear excepted) at the expiry of this Agreement before refunding the balance portion of security deposit.
17.  To permit the LESSOR or his authorized representatives to inspect the Scheduled Premises at a time mutually convenient after giving at least 48 hours notice.
18.  Not to carry on any offensive or unlawful activity in the Scheduled Premises and not to keep, store or use any dangerous material or articles in the Scheduled Premises.
19.  Not to do or cause to be done any act or thing which affects the structural strength of the Scheduled Premises.
20.  Not to sub-let or under-let the Scheduled Premises in any manner whatsoever.
21.  Not to transfer the leasehold right under this Agreement to any other person, firm or company without the prior written consent of the LESSOR.
22.  To hand over the vacant possession of the Scheduled Premises to the LESSOR with all furniture and fixtures as also all electrical, water, sanitary and any other installation /fittings/fixtures in the Scheduled Premises in good and proper working condition.


III.  The LESSOR covenants to the LESSEE as follows –


23.  To promptly and regularly pay property taxes in respect of the Scheduled Premises as may be levied or enhanced by local authorities from time to time. The LESSOR also agrees to pay any other taxes in respect of the Scheduled Premises that may be levied from time to time by the state government, central government or any other statutory body.
24.  To permit the LESSEE to have quiet and peaceful possession of the Scheduled Premises subject to its fulfilling all the terms and conditions of this Agreement.
25.  To attend to any major repairs affecting the strength and structure of the Scheduled Premise in so far as they are not caused by any act or damage caused by the LESSEE.
26.  To not have any charges or claims whatsoever on the equipment or personal effects that may be kept or installed in the Scheduled Premises that are owned by the LESSEE.
27.  LESSEE is explicitly prohibited from taking any loans or claims against the Scheduled Premises and is similarly also not liable or responsible for any loan claimed against the Scheduled Premises for loans taken by the LESSOR.
28.  The LESSEE is not responsible for any damage caused to the Scheduled Premises by act of god, lightning, earthquake, flood or any other natural calamity. The LESSOR hereby agrees and undertakes to fix and repair the damages caused by such calamities within a reasonable time, during which time the LESSEE shall be relieved of the obligation to pay rent if the LESSEE is unable to occupy the Scheduled Premises by reason of such damage. The LESSOR is not responsible for any damage caused to the LESSEE or her family or their personal effects as a result of any such calamity.
29.  If the rents hereinabove mentioned shall be in arrears for any two consecutive months during the term of this Agreement after becoming due, whether demanded or not, the LESSOR shall have the right of re-entry to the Scheduled Premises and the right to take possession thereof after issuing a notice by Registered Post – Acknowledgment Due (RPAD) to the LESSEE. However if within a week of date of receipt of the notice the LESSEE pays the entire amount in arrears together with interest thereon at 18% per annum, the LESSOR shall not pursue with the right of re-entry.
30.  If there is any breach or failure to perform or observe any of the terms and conditions of this Agreement by either of the Parties, the other Party shall issue a notice by RPAD calling upon the defaulting Party to remedy / rectify such defect within a reasonable period to be stated in the notice.
31.  Minimum Period – Notwithstanding anything contained in this Agreement neither Party is at liberty to terminate this Agreement prematurely prior to the end of the initial 11 months from effective date.  If it is imperative that the LESSEE chooses to vacate the premises during initial 11 month period then the LESSEE is obliged to pay to the LESSOR rent for the remaining period of the Agreement.  In the event of such termination, the LESSOR shall refund to the LESSEE the interest free security deposit subject to such deductions as are stated in Clause II (i) and after adjusting for balance rent for the remaining period which is not received.
The Lessee’s obligation to the Lessor is limited to the first 11 months during the Minimum Period.  If the Lessee decides not to exercise the extension option, the Lessee agrees to provide 30 days notice to terminate the Minimum Period lease.  The Lessor will refund the security deposit to the Lessee as per Section 3.
If the Lessee exercises the extension option, the Lessee’s obligation to the Lessor is extended for the full 11 months of the second period.
Additional renewals beyond the second period will be mutually negotiated between the parties during the final 30 days of the second period.
32.  This Agreement shall be terminated under all or any of the following circumstances
33.  In the event of breach by either Party of the terms, conditions and covenants contained herein, and such breach is not remedied after notification of breach to the defaulting Party in accordance with Clause VII.
34.  If the Scheduled Premises or any part thereof is severely damaged or destroyed due to any unforeseen causes and the same is not restored by the LESSOR within reasonable time or if the Scheduled Premises are acquired compulsorily by the government or any statutory or local authority.
35.  Efflux of time and end of term of this Agreement:
36.  Providing one month’s notice by either Party, subject to the Minimum Period as per Clause -30 being applicable on the LESSEE
37.  At move-in, the Lessee therefore agrees to pay INR……….to the Lessor per the following breakdown:

+INR…(Refundable Security Deposit)
+INR…(Prorated rent for first month)
-INR…(Token Security Deposit , if any provided to Lessor, to hold premises)
+INR…(Maintenance Fee for 12 months)

38.  The notices referred to in this Agreement shall be sent by Registered Post Acknowledgement Due to the addresses mentioned in this Agreement unless any change of address is notified by either of the Party to the other in writing.
39.  This Agreement is signed in duplicate original one each to be retained by LESSOR and LESSEE both having equal value.
40.  The Parties herewith agree that upon completion of the term of this Agreement the lease may be renewed by the mutual consent of both Parties by executing a separate agreement on terms and conditions to be agreed in that proposed agreement.
41.  In the case of any dispute between the Parties only the Courts in the City of (Mention City name) shall have jurisdiction to settle the dispute.

SCHEDULE I

Residential flat/villa bearing number ……(Full Address) with a total super built up area of …….square feet and consisting of …… bedrooms (…. with attached toilets) and other facilities such as (edit as needed):  one living cum dining, a living area, kitchen, utility verandah, one servant room and two covered car park in the basement and together with fully functioning electrical, sanitary and water accessories, installations and amenities as also furniture, fixtures and other installations as detailed in Schedule II.

IN WITNESS WHEREOF THE PARTIES hereto have signed this Agreement on the day month and year first written above

SIGNED AND DELIVERED in the presence of the witnesses mentioned below by the said:

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