Lease Agreement


A lease agreement is an agreement between two parties called lessor and lessee, by which the lessor permits the lessee the right to the use of a property owned by the lessor for a specified period in exchange for periodic payment of lease rent.

The ownership rights are not provided to the lessee under this agreement. Even so, the lessee may be granted permission by the lessor to alter or modify the property to match his or her requirements. The lessee is in charge of the state of the property during the period of lease

Lease of vehicles, estates, household equipment, and construction equipment may be carried out under lease agreements.

The lease agreement defines the conditions of the adaptation so that every party recognizes its rights and obligations under the lease.

A lease agreement or lease deed is a contract used when a party conveys land or personal property to another person for a specific time in return for a payment known as lease rent. The lease agreement covers all of the facets of the lease arrangement so that, all parties can understand their rights and obligations under the lease.

Common Terms in Lease Agreement


This term describes the period during which such lease agreement will remain effective.

Lease Rent:

It is the consideration paid by the lessee to the lessor for using his / her premises.


As the name suggests, the deposit is a sum paid by the lessee to the lessor at the beginning of arrangement to secure the lessor against any future default or damage done by the lessee to the property. This deposit is usually repaid by the lessor to the lessee at the end of the contract.

Terms of Use:

The object for which the property is to be used including terms and conditions regarding the use of the property is mentioned.


It generally includes terms and conditions regarding payment of bills like electricity bill, water bill, etc. and various taxes.


A requirement of insurance of property drawn by the lessee.

Repairs and Maintenance:

Responsibility to conduct repair and maintenance of leased premises.

Important Contents of Lease Agreement

Names and description of the parties to the agreement.

Detailed Description of the property.

Rent and due dates, and late fees.

Mode of payment of rent.

Agreement termination terms prior to the expiration date and charges if any.

Security deposit amount.

Facilities and Amenities on the premises which the lessee is allowed to use such as swimming pool, security systems or laundry.

Rules and regulations regarding use of property and penalty in case of violation.

Parking facility, including designated parking spaces, if provided.

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