A Ready-to-Use Lease Agreement Draft with Sub-Leasing and Construction Rights – Ideal for Long-Term Commercial Property Rentals
DEED OF LEASE
This DEED OF LEASE is made on the [DATE] day of [MONTH, YEAR] at [PLACE].
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BY AND BETWEEN
(1) [LESSOR NO 1], (Pan Card No:_________________), daughter of [NAME OF THE FATHER OF LESSOR NO 1], wife of [NAME OF THE HUSBAND OF LESSOR NO. 2], & (2) [LESSOR NO 2], (Pan Card No:_________________), s/o [NAME OF THE FATHER OF LESSOR NO 2], both are resident of [FULL ADDRESS OF LESSORS], collectively referred to as the 'LESSORS’ (which expression unless repugnant to the context shall mean and include her heirs, successors, representatives, administrators, executors and assigns) of the ONE PART;
AND
[NAME OF THE COMPANY], (Pan Card No:_________________) Represented by its DIRECTOR, [NAME OF THE DIRECTOR], (Pan Card No:_________________), aged about [AGE] years r/o [DULL ADDRESS OF DIRECTOR], hereinafter called the 'LESSEE', (which expression unless repugnant to the context shall mean and include his partners, his heirs, successors, representatives, administrators, executors and assigns) of the OTHER PART.
WHEREAS the 'LESSORS' above named is the exclusive possessor and absolute lawful owner, free from all encumbrances executions and/or attachment of a total plot of land measuring [e.g. 0 Bigha 2 Katha 18.00 Lessa (equivalent to 8,352.00 Sq. Ft.), with approximate dimensions of 15 feet in width and 55 feet in length, comprising of a R.C.C. constructed one storeyed building, being Commercial Cum Staff Quarter Building, standing upon the said land, which also includes certain open/vacant space within the plot] situated at [FULL ADDRESS OF LAND LOCATION], covered by Part of Dag No. [DAG NO], pertaining to Periodic Patta No. [P.P. NO], mauza [___], Within [___] Revenue Circle, District [______]. Herein after called the LEASED PREMISES, which is more fully described in the schedule below.
AND WHEREAS the 'LESSORS' has agreed to grant the perpetual lease for a term of 11 (Eleven) years of the said property as fully detailed in the schedule below, in consideration of the payment of an advance of Rs 20,000/- (Rupees Twenty Thousand) only the details of which is further elaborated upon in the memo mentioned herein below, as a non interest bearing security deposit, which will be adjusted with the rent initially until fully adjusted and Rs. 3,500/- (Rupees Therty-Five Hundred) only as the monthly rent according to the English calendar month, for the leased premises and building.
AND WHEREAS, that the LESSEE, intending to establish and operate an [e.g. Information Technology (I.T.) company] from the demised premises, approached the LESSORS upon which the LESSORS also agreed to let-out the said premises on the following terms and conditions the parties hereto have agreed amicably for the demise of the Lease unto the LESSEE by the LESSORS as per the terms and conditions appearing hereinafter for carrying on its I.T.-related business and activities.
NOW THIS DEED WITNESSETH AS FOLLOWS: -
- That the LESSEE has agreed to take and the LESSORS have agreed to hand over the aforesaid premises on lease as fully described in the schedule below, in consideration of the payment of a non-interest, bearing security deposit of Rs 20,000/- (Rupees Twenty Thousand) only and a monthly rent of Rs. 3,500/- (Rupees Therty Five Hundred) Only in respect of the said premises as per the English Calendar Month.
- The LESSEE shall use the Leased premises for his I.T.-related business and activities, but shall be at full liberty to use the total leased premises for any other business as he deems fit and the LESSORS shall have no objection to the same for any type and kind of business of legal nature in the eyes of law.
- That the Lease shall remain in force for a period of 11 years (Eleven Years) w.e.f. ___/____/2025 till ___/___/2036 for the exclusive and unobstructed use by the LESSEE, together with the right for the LESSEE'S employees, customers, agents and other persons having business with the LESSEE to use the said premises with all easements and other appurtenances unto the LESSEE and under no circumstances the Lease shall be terminated or cancelled during the stipulated period of 11 (Eleven) years, either by the LESSORS or his heirs or successors or any other person(s) claiming under or through him. ___/___/2025 shall remain the effective date of the Lease term for all purposes.
- That the LESSEE also has a License sanctioned by the Government of ______ vide Govt. No. ________________ dated ___ of [month] [year] for running I.T.-related business and activities, and the LESSORS have agreed to lease out the License to the LESSEE for the period of 11 years @ a monthly rent of Rs. 3,500/- (Rupees Thirty-Five Thousand) only w.e.f. 01/04/2025 till ___/___/2036 for the exclusive and unobstructed use by the LESSEE.
- That the LESSEE over the term of the Lease of 11 years, will allow the LESSORS, at the LESSORS discretion, an additional grace period of 3 (Three) years for vacating the Leased premises and other ancillary business over the leased premises.
- That the LESSEE has the right to renovation and overhaul of the interiors and exteriors of the LEASED premises to make it suitable and attractive for its intended business for its business.
- That all GST amount relating to the monthly rent as well as for the Business and/or other ancillary services shall be borne by the LESSEE exclusively during the Lease period.
- That all other taxes, apart from relating to the business of the [NAME OF THE COMPANY], shall be borne by the LESSEE, including the expenses for the renewal and payments of any fees relating to the Trade License issued by the concerned authority.
- That a separate sub-meter shall be provided in the LEASED PREMISES for the purpose of recording electricity consumption by the LESSEE, who shall be solely responsible for payment of electricity charges as per actual consumption on the basis of readings recorded by the said sub-meter. In the event the LESSEE requires any additional electrical load or enhancement of existing load, the same shall be arranged, applied for, and obtained by the LESSEE at its own cost, risk, and effort, without involving the LESSORS in any manner whatsoever.
- That the monthly rent for the Leased Premises shall be Rs. 3,500/- (Rupees Three Thousand Five Hundred only), payable by the Lessee to the Lessors on or before the 5th day of each succeeding calendar month. The lease term shall be for a fixed period of 11 (eleven) years commencing from the date of execution of this Deed. The Lessors have expressly agreed not to enhance the monthly rent during the entire lease term. Upon the expiry of the said lease term, both the Lessors and the Lessee may mutually reconsider and negotiate the terms for extension or renewal of the lease, subject to a fresh agreement in writing.
- That the lease shall be recorded according to English Calendar month commencing from the 1st day of every month and ending with the last day of the same month and the lease rent shall be payable on the very next month.
- That the LESSORS shall allow the LESSEE to construct any and all types of Assam Type/RCC structure(s)/building(s) over the vacant space and terrace of the Leased premises, necessary for running of LESSEE'S business(s) over the leased premises and shall further allow alterations over the building(s) as such, constructed over the Leased premises as and when required, for the optimum utilization of the Lease property. The LESSEE shall bear all expenses for the construction of the same. However, the LESSEE shall not alter the basic foundation and existing structure without prior permission from the LESSORS.
- That the LESSORS by the means of recitals made in this Lease Deed hereby gives all necessary No-Objections, and further confirms that the Lessee shall be in his rights to sign, verify all forms and other documents or to make application before the Tinsukia Development Authority/Tinsukia Municipal Board or before any other local authorities for obtaining construction permissions and getting his proposed construction plans approved over the aforesaid vacant space in the leased premises and to collect the same from the concerned authority/authorities at his own cost.
- That as the registered Lessee, the Lessee shall have all the powers and authority to make applications before all offices, Govt., Semi Government, Town Committee and such other authority and/or office for getting any required permission/registrations/licenses in the name of LESSEE or his assignees/firm/Private Limited Company as well as Sub-Lessee to carry out any kind of lawful business(s) smoothly on the said premises and even this Lease Deed shall be deemed as No-Objection from the LESSORS to the LESSEE for carrying out all work necessary for running his business(s) as regards and in respect of the said leased premise property mentioned above and for that purpose to make, sign and verify all petitions, applications, before the appropriate authority/authorities that may be required for effecting and obtaining all required registrations for running his business(s) in the land mentioned above.
- That the LESSORS hereby further re-iterates that through this Lease Deed he gives his necessary No-Objection, and hereby pledges to extend his full co-operation in getting any required permission for LESSEE to carry out any kind of lawful business(s) smoothly over the said premises and even this Lease Deed shall be deemed as No-Objections from the LESSORS.
- That the LESSORS being the occupier and possessor of the scheduled Property hereby further declares that he has no objection to the act of the LESSEE of constructing any Assam-Type/RCC structure(s) for commercial as well as residential purpose of the Lessee, his employees, customers, agents and other persons having business with persons having business with the LESSEE over the vacant space for his own requirement, The LESSEE shall have complete rights and authority for the same over the demised land along with its leasehold rights and for that, LESSEE will bear all the expenditure.
- That the LESSEE can form a firm either by way of Proprietorship, partnership or Private Limited Company by taking himself either as a partner or Director for running his business(s) over the Lease premises or by taking any of his family members, if so desired at his sole discretion for smooth running of business and the LESSORS shall raise no objection for the same.
- That the LESSEE shall have right to convey his interest over the leasehold property along with construction part proposed to be constructed or over any ascertained portion of the constructed part over the Leased premises by way of sub-lease, rent, or any other mode with the prospective individual, company or firm in respect of land as well as structure(s) proposed to be constructed by the Lessee over the Leased premises for a portion or the whole of the Leased premises or for just a portion/floor of a building proposed to be constructed over the Leased premises but it shall be duty of the LESSEE to make the rent payment to the LESSORS himself.
- That it is agreed between the parties that the LESSORS shall not be bound to pay any kind of insurance premium to the insurance company in respect of the proposed construction over the demised land and it shall be responsibility of the Lessee to obtain insurance in respect of Assam Type/RCC Structure(s) and building(s) and for his belongings and items stored in such building(s), proposed to be constructed on the lease property to safeguard from any damages caused to the structures and property of the LESSEE over the leased premises due to fire/theft or any other reasons, in such sum as the LESSEE shall deem to be adequate and in the event of the said premises being destroyed or damaged by fire, or any other reason during the said term, all moneys received under or by virtue of any insurance effected thereon shall be received and used by the LESSEE and the LESSORS shall have no objection for the same.
- That the LESSEE will have the right to use the leased premises in the exclusive possession of the LESSEE and the LESSORS or any person claiming under him will not have any kind of interference or interruptions with the quiet enjoyment of the leased premises by the LESSEE.
- That the LESSORS shall pay during the term of lease, all revenues and taxes in respect of the demised properties, if the Lessors fails to pay the revenues, taxes or other dues of Municipal Corporation, Municipalities or other statutory/local bodies in respect of the demised premises occupied by the Lessee, The Lessee shall be at liberty (but not bound) to pay such taxes /dues to the statutory/local bodies and subsequently adjust it from the rents payable to Lessors in due course.
- That the LESSEE will keep the premises of the said premises neat and clean and will maintain the premises at his own cost.
- That the LESSORS shall defend any suit for always ensuring continued and uninterrupted possession of the LEASED PREMISES unto the LESSEE and against all adverse interests.
- That if the LESSEE desirous to vacate the demised land, it shall serve on the LESSORS a minimum Two year notice of his intention to do so and on the expiry of the period of such notice - the LESSORS shall take possession of the leased premises and the Lessee shall not be liable for any future rent, however the LESSORS cannot cancel the said lease agreement for its own needs and is bound to adhere to the Agreement for the whole lease period.
- That the LESSEE shall be at liberty to acquire Electrical power or other supplies in its own name, the Lessee shall further be at liberty to carry out all works for computerization, including cabling, and shall have the powers to apply for permissions for obtaining gas connections, Landline connections, securing additional power requirements, installation of local Area network (LAN), VSAT at roof top without any objection from the LESSORS and pay for the same directly to the supplier or authority or company concerned for which LESSORS will accord all necessary permissions and even this Lease Deed shall be deemed as No Objection from the LESSORS.
- That the LESSEE shall be performing and observing all the covenants and conditions herein contained, shall be peaceably and quietly hold, possess, and enjoy the leased property during the period of LEASE, without any interruption or disturbances from the LESSORS or any person claiming under or through them.
- That on expiry of the period of term of lease, the Lessee shall vacate the land and deliver the same in favour of the Lessors, and for that the Lessors shall give the Lessee a minimum of 3 (three) years of time to vacate the premises with all his belongings and property over the leased premises, unless the period of the Lease is extended on such terms and conditions as may be decided in between the Lessors and Lessee. The grace period is limited to 3 years and will be from ____/___/2036 to ___/___/2039. This grace period of three years will also be on the same rent and conditions prevailing during that period.
- That after the term and tenure of the Lease has completed, both parties shall conduct a joint meeting to decide on further extension of the lease period, with fresh terms and conditions as mutually agreed upon.
- That in the event of the sale of the leased premises. The Lessee will have the right of first intimation of any such wishes of the LESSORS and the LESSORS will give priority to the LESSEE for such a sale transfer, however, if the LESSEE is unable to purchase the LEASED premises, the subsequent purchaser of the Leases premises will have to adhere and honour this "Deed of Lease" for the whole lease period.
- That all the office furniture, fixture and fittings, partitions and other articles (movables) which can be physically removed, which the LESSEE may be able to utilize and shall be required for his business(s) elsewhere, all of which the LESSEE shall be at liberty to remove at his own cost and consideration at the time of or before the expiration or sooner determination of the term period of Lease, without objection on the part of the LESSORS. All the permanent immovable structure(s) and building(s) left at the Leased premises, after the LESSEE had moved all his articles that he could manage to move physically, at the time of expiry of the term of the Lease, shall become the property of the LESSORS. The LESSEE, on his part, shall clear all the dues at or before the determination of the Lease Period.
- That in the event of any dispute difference or question arising between the parties with regard to the terms of this Lease agreement and the interpretation meaning or scope of the terms and clauses mentioned in this Lease agreement or any rights and liabilities of the parties under the Lease agreement or in any manner whatsoever concerning this Lease agreement, the same shall be decided by and referred to a sole arbitrator nominated/appointed by the Lessors and Lessee as mutually agreed between them under the relevant provisions of the law applicable thereto, whose decision will be final and binding upon the parties. In case any disputes arise, the jurisdiction will be held in Tinsukia.
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SCHEDULE OF THE LEASED PREMISES
All that is peace and parcels of land measuring [e.g. 0 Bigha 2 Katha 18.00 Lessa (equivalent to 8,352.00 Sq. Ft.), with approximate dimensions of 15 feet in width and 55 feet in length, comprising of a R.C.C. constructed one storeyed building, being Commercial Cum Staff Quarter Building, standing upon the said land, which also includes certain open/vacant space within the plot] situated at [FULL ADDRESS OF LAND LOCATION], covered by Part of Dag No. [DAG NO], pertaining to Periodic Patta No. [P.P. NO], mauza [___], Within [___] Revenue Circle, District [______], which is bounded as follows:
DIRECTION BOUNDARY
- North
- South
- East
- West
Memo of Consideration:
- Rs. ______________/- (__________) paid to ______________ in her A/c No. ________________ of [BANK NAME] vide cheque no. dated ______/2025, from the account of [NAME OF THE PAYER], represented by its Director, [NAME OF THE DIRECTOR].
IN WITNESS WHEREAS the LESSORS and the LESSEE have executed this DEED OF LEASE on the day, month, and year first above written in the presence of the witnesses.
WITNESSES: -
1.
__________________________
SIGNATURE OF THE LESSORS
2.
_________________________
SIGNATURE OF THE LESSEE
Drafted By:
(Advocate)
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This lease deed format serves as a practical legal template for commercial leasing involving IT businesses. You can modify the draft as per specific legal and property requirements. For personalized assistance or documentation services, feel free to reach out.