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LEASE-DEED
(A brief Introduction)
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, share, service, or
other thing to be so rendered is called the rent.
Essentials of Lease.
An instrument of lease must contain the duration of the
lease, the time of commencement, the amount of rent or premium,
if any, the time of payment and the covenants between the lessor
and the lessee upon which the lease should be granted.
Period of Lease. A lease may be from year to year, or
month to month, or in perpetuity.
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 an 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.
Click here for Section
105 Transfer of Property Act
Ascertain Payment of Stamp duty
and Registration fee.
Ascertain the list of documents (enclosures)
required to be produced at the time of presentation of the document
before the jurisdictional Sub-Registrar.
Format of Lease-deed
Payment of Stamp duty
and Registration fee.
A. (i) Stamp duty is payable on the instrument but not on the
transaction. To ascertain the correct Stamp duty payable one
has tosee the intention of the document and words used in it.
(ii) A general format has been designed for the help of the
public concerned. Based on this format Stamp duty and Registration
fee payable on this Lease-deed is as below
Example
1. A residential / commercial / industrial shed / house etc.
situated in Bangalore city when it is leased stamp duty and
registration fee is calculated as follows
| 1 |
(A) (a) Where rent is fixed
and no premium is paid
(i)Period of lease 11 months
(ii)Rent fixed Rs.1,000=00 per month. |
Rs.550=00
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Article 30(1)(a)(i) |
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(b) (i) Period of lease
5 years
(ii) Rent fixed is Rs.1,000=00 per month |
Rs.600=00 |
Article 30(1)(a)(ii) |
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(c) (i) Period of lease
10 years
(ii)Rent fixed is Rs.1,000=00 per month. |
Rs.1920=00 |
Article 30(1)(a)(iii) |
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(d) (i) Period of lease
20 years
(ii)Rent fixed is Rs.1,000=00 per month |
Rs.2880=00 |
Article 30(1)(a)(iv) |
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(e) (i) Period of lease
30 years
(ii) Rent fixed is Rs.1,000=00 per month. |
Rs.3840=00 |
Article 30(1)(a)(v) |
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(f) (i) Period of lease
is above 30 years
(ii)Rent fixed is Rs.1,000=00 per month. |
8% on the market value of the
property. |
Article 30(1)(a)(vi) |
| 2 |
(B) (a) Where entire rent
/ premium paid in advance.
(i) Period of lease not exceeding30 years.
(ii) Entire rent amount of Rs.30,000 paid in advance. |
Rs.2400=00 |
Article 30(1)(b)(i) |
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(b) (i) Period of lease
above 30 years.
(ii) Entire rent amount of Rs.30,000 paid in advance.
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8% on Rs.30,000=00 or on
the market value of the property whichever is greater.
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Article 30(1)(b)(ii) |
| 3 |
(a) (i) Period of lease
less than 30 years
(ii) Rent amount of Rs.30,000 paid in advance . and
(iii) Agreed to pay monthly payment of Rs.500 |
8% on Rs.30,000=00 i.e.,
Rs.2400=00 plus 8% on the 4 times amount of the average
annual rent of Rs.6,000=00 i.e., Rs.480 Total duty Rs.2880=00.
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Article 30(1)(c)(i) |
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(b) (i) Period of lease
above 30 years.
(ii)Rent amount of Rs.30,000 paid in advance and
(iii) Agreed to pay monthly payment of Rs.500 |
8% on Rs.30,000=00 or on
the market value of the property whichever is greater.
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Article 30(1)(c)(ii) |
| 4 |
Registration fee |
1% |
The
Table of Fees |
Note
(1) The refundable security deposit provided for in
a lease deed is chargeable as per Article 47 of the Schedule
to the Karnataka Stamp Act, 1957 i.e. maximum duty of Rs.100=00
chargeable. [Chief
Controlling Revenue Authority V/s Chandrashekar and others C.R.C.
No.5 of 1981, dated 8-10-1984 (1) Kar.LJ.99-ILR 1984 Kar, 1003;
AIR 1985 Kant, 61 (FB)]
(2) When lessee undertakes to pay any recurring charges such
as Government revenue, the landlords share of cesses, or the
owners share of municipal rates or taxes which is by law recoverable
from the lessor, the amount so agreed to be paid by the lessee
shall be deemed to be part of the rent.
(3) Surcharge Duty @ of 3% or 2% as the case may be is leviable
if the lease is in perpetuity.
The list of documents (enclosures)
required to be produced at the time of presentation of the document
before the jurisdictional Sub-Registrar.
| 1. |
An Identical copy of the Lease-deed. |
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| 2. |
Form No.1.
(in duplicate)
(If the lease is above 30 years) |
The Karnataka
Stamp (Prevention of Undervaluation of Instruments) Rules,
1977 to download Form No.1 |
| 3. |
Affidavit
(in duplicate) |
(a) Affidavit shall state that “Registration
of this document does not violate the notification issued
under Section 22A of the Registration Act, 1908.”
for Notification Oppose to
Public Policy.
(b) Affidavit shall be made on Document Sheet or on plain
paper. Stamp duty of Rs.20=00 can be paid in cash at Sub-Registrar
Office itself.
(c) Sub-Registrar is empowered to attest affidavits as
per Chapter IV –of the Karnataka Civil Rules of
Practice, 1967.
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| 5. |
Extract of assessment register of the property. |
This extract is necessary to assess the market value
of the property. |
Format of Lease-deed
Note: This is only a draft format and not a format prescribed
under any law. This format can be used with modifications suiting
to your requirements wherever it is necessary. In case of doubt
regarding payment of Stamp duty and Registration fee etc. contact
the concerned Sub-Registrar / District Registrar.
[You can download this Lease-deed
format]
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