The Informal Lease Agreement is commonly used in India for residential and small commercial rental arrangements where parties prefer a simpler alternative to a formal registered lease deed. This document type is particularly relevant for lease terms under 11 months, as it helps avoid the more complex registration requirements of longer-term leases under the Registration Act, 1908. While informal, the agreement still needs to comply with the Transfer of Property Act, 1882, relevant state-specific rent control laws, and the Indian Contract Act, 1872. The document typically includes essential terms such as property details, rent amount, security deposit, duration, and basic obligations of both parties. This type of agreement offers a balance between legal protection and practical simplicity, making it popular for straightforward rental arrangements in the Indian real estate market.
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1. Parties: Identification and details of the landlord and tenant, including full names, addresses, and contact information
2. Background: Brief context about the property and the parties' intention to enter into a lease arrangement
3. Definitions: Key terms used throughout the agreement defined for clarity
4. Property Details: Complete description and address of the leased property
5. Term and Rent: Duration of lease, monthly rent amount, and payment terms
6. Security Deposit: Amount, payment terms, and conditions for refund of security deposit
7. Maintenance and Repairs: Responsibilities of landlord and tenant regarding property maintenance
8. Utilities and Charges: Allocation of utility payments and other charges between parties
9. Use of Property: Permitted uses of the property and any restrictions
10. Termination: Conditions and process for ending the lease agreement
11. Governing Law: Specification that the agreement is governed by Indian law
1. Lock-in Period: Minimum period during which neither party can terminate the lease, used when parties want to ensure stability
2. Subletting: Terms regarding subletting or assignment rights, included if subletting might be permitted
3. Insurance: Requirements for property insurance, included for high-value properties or commercial leases
4. Force Majeure: Provisions for unforeseen circumstances, important during uncertain times
5. Pet Clause: Rules regarding keeping pets in the property, included if relevant to the parties
6. Renovation Rights: Terms for making alterations to the property, included if modifications might be needed
1. Schedule A - Property Description: Detailed description of the property including floor plan and boundaries
2. Schedule B - Inventory List: List of furniture, fixtures, and appliances provided with the property
3. Schedule C - Property Photos: Photographs documenting the condition of the property at the start of lease
4. Schedule D - House Rules: Specific rules and regulations for property use and maintenance
5. Schedule E - Payment Schedule: Detailed breakdown of rent, maintenance charges, and other periodic payments
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