WEEK 9:LEASE AND ITS ESSENTIAL

LEASE AND ITS ESSENTIAL

Lease Defined Under Section 105 of Transfer of Property Act : 

              A lease of immovable 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, lessee, premium and rent defined : 

 Parties to Lease:

 Lessor : The transferor  of property is called the lessor,

 Lessee: The transferee of property is called the lessee,

Essentials of the Valid Lease : 

1) Parties must be a competent
2) The  lease must be an existing  immovable property and should be of transferable nature.

3) There is Transfer of right to enjoy the property.

4) Lease should be made for a certain time, express or implied or in perpetuity.

) The Consideration  may be in the form of  premium a rent or both.

6) The lessee must accept the transfer on such terms.

7) The lease must be created in accordance with provisions of  Section 107 of Transfer of Property.
105. Lease defined. A lease of immovable 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, lessee, premium and rent defined. The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, service or other thing to be so rendered is called the rent.

106. Duration of certain leases in absence of written contract or local usage. In the absence of a contract or local law or usage to the contrary, a lease of immovable property for agricultural or manufacturing purposes shall be deemed to be a lease from year to year, terminable, on the part of either lessor or lessee, by six months' notice expiring with the end of a year of the tenancy; and a lease of immovable property for any other purpose shall be deemed to be a lease from month to month, terminable, on the part of either lessor or lessee, by fifteen days' notice expiring with the end of a month of tenancy. Every notice under this section must be in writing signed by or on behalf of the person giving it, and [either be sent by post to the party who is intended to be bound by it or be tendered or delivered personally to such party, or to one of his family or servants at his residence, or (if such tender or delivery is not practicable) affixed to a conspicuous part of the property.

107. Leases how made. A lease of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument. All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession. Where a lease of immovable property is made by a registered instrument, such instrument or, where there are more instruments than one, each such instrument shall be executed by both the lessor and the lessee: Provided that the [Provincial Government] may, from time to time, by notification in the [official Gazette], direct that leases of immovable property, other than leases from year to year, or for any term exceeding one year, or reserving a yearly rent, or any class of such leases, may be made by unregistered instrument or by oral agreement without delivery of possession.

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