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Simple Commercial Lease Agreement for India

Simple Commercial Lease Agreement Template for India

A comprehensive legal document governed by Indian law that establishes the terms and conditions for leasing commercial property between a landlord and tenant. This agreement outlines essential elements including rent, duration, maintenance responsibilities, and usage restrictions while ensuring compliance with the Transfer of Property Act, 1882, and relevant state-specific commercial tenancy laws. It provides legal protection for both parties and clearly defines their rights, obligations, and remedies under Indian jurisdiction, including specific requirements for registration and stamp duty as per local regulations.

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Simple Commercial Lease Agreement

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What is a Simple Commercial Lease Agreement?

The Simple Commercial Lease Agreement is a fundamental legal document used in India when a property owner (lessor) agrees to rent out commercial space to a business tenant (lessee). This document is essential for any commercial property rental transaction and must comply with Indian property laws, particularly the Transfer of Property Act, 1882, and state-specific rent control acts. It typically includes detailed terms about rent, duration, maintenance, utilities, and permitted use of the premises, while also addressing key aspects such as security deposits, insurance requirements, and termination conditions. The agreement becomes especially crucial in protecting both parties' interests and preventing future disputes by clearly documenting all terms and conditions of the commercial tenancy relationship. For leases exceeding 11 months, registration under the Indian Registration Act is mandatory, making this agreement a vital tool for establishing legally binding commercial rental arrangements.

What sections should be included in a Simple Commercial Lease Agreement?

1. Parties: Identifies and provides full details of the lessor/landlord and lessee/tenant, including names, addresses, and registration details for companies

2. Background: Brief context about the property and the parties' intention to enter into a lease arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Demised Premises: Detailed description of the leased property and any included facilities or amenities

5. Term and Commencement: Duration of the lease and specific commencement date

6. Rent and Payment Terms: Monthly rent amount, payment schedule, and method of payment

7. Security Deposit: Amount, payment terms, and conditions for refund of the security deposit

8. Permitted Use: Specified commercial purposes for which the premises may be used

9. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance and repairs

10. Utilities and Outgoings: Responsibility for payment of utilities, taxes, and other operating expenses

11. Insurance: Required insurance coverage to be maintained by each party

12. Assignment and Subletting: Restrictions and conditions on transferring or subletting the premises

13. Landlord's Covenants: Obligations and promises of the landlord under the lease

14. Tenant's Covenants: Obligations and promises of the tenant under the lease

15. Termination: Grounds and procedure for early termination of the lease

16. Governing Law: Specification of Indian law as governing law and jurisdiction

17. Notices: Process and addresses for serving formal notices under the agreement

18. Execution: Signature blocks and execution formalities

What sections are optional to include in a Simple Commercial Lease Agreement?

1. Lock-in Period: Specific period during which neither party can terminate the lease except for cause - included when parties want to ensure stability

2. Rent Escalation: Periodic increase in rent amount - included when parties agree to structured rent increases

3. Fit-out Period: Initial rent-free period for tenant improvements - included when premises need modification for tenant's use

4. Common Area Maintenance: Obligations regarding shared facilities - included for premises in commercial complexes

5. Force Majeure: Provisions for unforeseen circumstances - particularly relevant post-COVID

6. Right of First Refusal: Tenant's right to match third-party offers - included when tenant wants future security

7. Signage Rights: Terms for external business signage - important for retail premises

8. Green Lease Provisions: Environmental and sustainability requirements - included for green buildings or when parties have sustainability goals

What schedules should be included in a Simple Commercial Lease Agreement?

1. Schedule 1 - Property Details: Detailed description of premises including floor plans and measurements

2. Schedule 2 - Rent Schedule: Detailed breakdown of rent, escalations, and payment dates

3. Schedule 3 - Inventory List: List of fixtures, fittings, and equipment included in the lease

4. Schedule 4 - House Rules: Building rules and regulations if in a commercial complex

5. Schedule 5 - Handover Protocol: Condition report and handover procedures

6. Appendix A - Registration Requirements: Documentation required for lease registration

7. Appendix B - Maintenance Schedule: Detailed maintenance responsibilities and schedules

8. Appendix C - Permitted Alterations: Specifications for allowed modifications to the premises

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions

































Clauses






























Relevant Industries

Real Estate

Retail

Office Space

Commercial Property

Manufacturing

Warehousing

Hospitality

Professional Services

Healthcare

Education

Technology

Banking and Financial Services

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Procurement

Compliance

Risk Management

Administration

Corporate Affairs

Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Corporate Lawyer

Business Development Manager

Operations Director

Chief Financial Officer

Procurement Manager

Compliance Officer

Real Estate Agent

Property Consultant

Office Administrator

Company Secretary

Risk Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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