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Assignment
On
Agreement to lease
Course Code: Law 304
Course Title: Registration and PDR Acts

Submitted To:
Mr. Md. Riaduzzaman
Lecturer
Department of Law
Daffodil International
University

Submitted By:
Md. Lutfur Rahman
ID: 141-26-565
Section: A
Department of Law
Daffodil International
University

Date of Submission: 17-02-2016

Topic: Agreement to lease

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Table of Contents
Topics

01

Introduction

Page
No.
03

02
03
04

Agreement to Lease
Contents of a Lease Agreement
Is an Agreement to Lease or a Lease Deed required to be registered with any

03
03
03

05

authority?
Consequences of non-registration of lease Agreement

04

06
07

The time within the Deed of lease must be registered

Conclusion

04

08

Reference

04

Sl.
No.

04

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Introduction:
A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for
use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial
or business equipment is also leased.
Broadly put, a lease agreement is a contract between two parties, the lessor and the lessee.
The lessor is the legal owner of the asset; the lessee obtains the right to use the asset in return
for regular rental payments. The lessee also agrees to abide by various conditions regarding
their use of the property or equipment. For example, a person leasing a car may agree that the
car will only be used for personal use.

Agreement to Lease:
A contract between a lessor and lessee that allows the lessee rights to the use of
a property owned or managed by the lessor for a period of time. The agreement does
not provide ownership rights
to
the
lessee;
however,
the
lessor
may grant certain allowances to modify, change or otherwise adapt the property to suit
the needs of the lessee. During the lease period, the lessee is responsible for the condition of
the property.

Contents of a Lease Agreement:

The lease agreement outlines and details the obligations and responsibilities of the landlord
(lessor) and the tenant (lessee). It explains what the landlord and tenant have agreed upon in
regards to length of the lease, how much the monthly rent will be, and who will be
responsible for upkeep of the property. It is important for tenants to understand that a lease
agreement can be altered prior to being signed. If there is something that you do not
understand or agree to, or if there is a provision that needs to be altered, discuss it with the
landlord prior to signing the lease.

Is an Agreement to Lease or a Lease Deed required to be registered with

any authority?
According to section 17(1)(D) in The Registration Act, 1908- Leases of immovable property
from year to year, or for any term exceeding one year, or reserving a yearly rent;
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.

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An agreement to lease within the purview of Section 105 is not required to be registered by
the Transfer of Property Act. But the agreement to Lease must be registered under s. 17(1)of
the Registration Act, 1908, when the paramount intention of the parties is to create an
immediate and present demise as held in T.N.Habib Khan v. Shanti Lucian [AIR 1982 Mad.
156(170)

An agreement to lease is not required to be registered. A Deed of Lease, by which the demise
is created, has to be registered with an authority known as the Sub-Registrar of Assurances,
constituted under the Indian Registration Act. Provisions regarding registration are contained
in both Sec. 107 of the Transfer of Property Act and in Sec. 17 of the Indian Registration Act.
Under both these provisions, leases of immovable property from year to year or, for any term
exceeding one year or, reserving a yearly rent, have to be registered with these registering
authorities.
That Madras High Court held in Rama Sahu (Dead) And Ors. vs Gowro Ratho on 10
September, 1920 Equivalent citations: 59 Ind Cas 350 Author: Spencer
Bench: J Wallis, W Ayling, Krishna held:- The question raised in second appeal is whether
Exhibit B, which is an unregistered lease for six months of a house at a rent of eight annas a
month, was admissible in evidence to prove that defendants Nos. 1 to 3 occupied the house as
fourth defendant's tenants. To be effective as a lease of immoveable property this document
required registration under Section 107 of the Transfer of Property Act; although being a
lease for a period less than one year it was not compulsorily remittable under Section 17(d) of
the Registration Act (Act XVI of 1908). Section 107 of the Transfer of Property Act provides
that leases of immoveable property from year to year or for any term exceeding one year
must be made only by a registered instrument, and that all other leases may be made either by
a registered instrument or by an oral agreement accompanied by delivery of possession.

Consequences of non-registration of lease Agreement:

The failure to a register a agreement of lease has the following consequences It does not create a valid lease of any immovable property comprised therein.
Such a deed cannot be received as evidence of any transaction, affecting such
property.
An unregistered lease deed is not admissible in evidence to prove the duration of a tenancy
because it is a term of a contract of tenancy. However, it is admissible to prove the nature of
the character of the possessing of the defendant.[Damulal bahulal Jain V. Mohammad Bhai
Haji Suleman AIR 1955 Nag. 306(311)]

The time within the Deed of lease must be registered:

It must be presented to the authority for registration within four months from the date of
registration and within four months from the date of execution.

Conclusion: 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

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executed by both the lessor and the lessee: Provided that the State 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 an yearly
rent, or any class of such leases, may be made by unregistered instrument or by oral
agreement without delivery of possession.
Reference:
1. The Registration Act
by Sh. Shaukat Mahmood
2. Transfer of property Act 1882
3. The Registration Act 1908