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Leasehold Contract Template for India

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Key Requirements PROMPT example:

Leasehold Contract

"I need a Leasehold Contract for a commercial office space in Mumbai, with a 5-year term starting March 1, 2025, including provisions for quarterly rent escalation and fit-out period, suitable for an IT company tenant with rights to make internal modifications."

Document background
This Leasehold Contract template is essential for documenting property rental arrangements in India, ensuring compliance with the Transfer of Property Act, 1882, Registration Act, 1908, and applicable state rent control laws. It should be used whenever a property owner (lessor) intends to grant temporary possession of their property to another party (lessee) for a specified period in exchange for rent. The document covers critical aspects including property details, rental terms, maintenance obligations, and termination conditions. It's designed to protect both parties' interests while ensuring legal enforceability under Indian law. The template can be customized for various property types, from residential to commercial, and includes provisions for security deposits, utilities, repairs, and dispute resolution. This Leasehold Contract is particularly important given India's specific requirements for lease registration and stamp duty compliance.
Suggested Sections

1. Parties: Identification and details of the lessor (landlord) and lessee (tenant), including their addresses and legal status

2. Background: Context of the lease agreement, including brief property history and purpose of the lease

3. Definitions: Definitions of key terms used throughout the agreement

4. Grant of Lease: Core terms of the lease including property description, duration, and purpose of lease

5. Rent and Deposits: Rent amount, payment terms, security deposit details, and escalation provisions

6. Term and Renewal: Duration of lease, commencement date, and renewal terms

7. Rights and Obligations of the Lessor: Landlord's responsibilities including maintenance, insurance, and property access rights

8. Rights and Obligations of the Lessee: Tenant's responsibilities including permitted use, maintenance, and compliance with regulations

9. Utilities and Outgoings: Responsibility for utility payments, taxes, and other property-related expenses

10. Maintenance and Repairs: Detailed provisions for property maintenance, repairs, and improvements

11. Default and Remedies: Events of default and corresponding remedies available to parties

12. Termination: Grounds and procedure for lease termination

13. Return of Property: Conditions for property handover at lease end

14. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction

15. Notices: Method and addresses for serving notices between parties

16. Execution: Signature blocks and execution formalities

Optional Sections

1. Lock-in Period: Minimum guaranteed period of tenancy, used when parties want to ensure stability

2. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in uncertain times

3. Assignment and Subletting: Terms for transferring lease rights, included when such flexibility might be needed

4. Alterations and Improvements: Detailed terms for property modifications, important for commercial leases

5. Insurance: Specific insurance requirements beyond statutory obligations

6. Environmental Compliance: Environmental obligations, particularly relevant for industrial properties

7. Property Management: Rules regarding property management services, relevant for managed properties

8. Signage Rights: Terms for installing signs or advertisements, important for commercial properties

9. Break Clause: Early termination options, included when flexibility is desired

Suggested Schedules

1. Property Description: Detailed description of the leased property including boundaries and floor plans

2. Rent Schedule: Detailed breakdown of rent payments and escalation dates

3. Inventory List: List of fixtures, fittings, and furniture included in the lease

4. Property Rules and Regulations: Specific rules governing the use of the property

5. Maintenance Schedule: Detailed breakdown of maintenance responsibilities

6. Form of Handover Certificate: Template for property condition documentation at handover

7. Approved Alterations: Pre-approved modifications or improvements to the property

8. Service Charges: Breakdown of service charges and calculation method

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries

Real Estate

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Finance

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Asset Management

Contract Management

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Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Corporate Lawyer

Real Estate Director

Operations Manager

Administrative Manager

Compliance Officer

Chief Financial Officer

Business Development Manager

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Site Manager

Leasing Manager

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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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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