Commercial Lease Agreement Format for Office Space in India

LEASE DEED

This Lease Deed is made and executed at New Delhi on this ___ day of __________, 20___.

BETWEEN

Mr./Ms./M/s ______________________________, son/daughter of / a company, firm or entity represented by ______________________________, having address/registered office at ________________________________________________, hereinafter referred to as the "Lessor" (which expression shall, unless repugnant to the context, include the Lessor's heirs, legal representatives, successors and permitted assigns), of the First Part;

AND

Mr./Ms./M/s ______________________________, son/daughter of / a company, firm or entity represented by ______________________________, having address/registered office at ________________________________________________, hereinafter referred to as the "Lessee" (which expression shall, unless repugnant to the context, include the Lessee's legal representatives, successors and permitted assigns), of the Second Part.

Recitals

A. The Lessor represents that the Lessor is lawfully entitled to lease the commercial premises bearing No. ____________, admeasuring approximately __________ sq. ft., situated at ________________________________________________ and more particularly described in the Schedule below ("Demised Premises").

B. The Lessee has requested the Lessor to let the Demised Premises for lawful commercial/office use, and the Lessor has agreed on the terms and conditions recorded below.

C. The parties intend to record their respective rights and obligations regarding possession, rent, maintenance, utilities, repairs, use and return of the Demised Premises.

NOW THIS LEASE DEED WITNESSETH AS FOLLOWS:

1. Demise and rent. In consideration of the rent and the Lessee's observance of this Lease Deed, the Lessor leases to the Lessee the Demised Premises at a monthly rent of ₹____________ (Rupees __________________________________ only), payable on or before the ___ day of each calendar month by bank transfer, cheque or any other mutually agreed lawful mode, commencing from ___/___/20___.

2. Term and renewal. The lease shall remain in force for a fixed period commencing on ___/___/20___ and ending on ___/___/20___. Any renewal or extension shall be by mutual written agreement and shall comply with the stamp and registration requirements then applicable. If renewed, rent may be increased by ___% or by such other rate as the parties agree in writing.

3. Permitted use. The Lessee shall use the Demised Premises only for lawful commercial/office purposes and shall obtain and maintain any licence, registration, consent or approval required for the Lessee's business. The Lessee shall not use the premises for any unlawful, hazardous or prohibited activity.

4. Electricity, water and usage charges. The Lessee shall pay electricity, water, internet and other consumption or user charges attributable to its occupation, together with maintenance/common-area charges if allocated to the Lessee under this deed. On request and at handover, the Lessee shall provide reasonable proof of payment of dues.

5. Property taxes and ownership charges. Unless otherwise agreed in writing, property tax, ground rent and other charges imposed primarily on ownership of the Demised Premises shall be borne by the Lessor. Charges arising from the Lessee's business, occupation or specific consumption shall be borne by the Lessee.

6. Security deposit. The Lessee shall pay an interest-free refundable security deposit of ₹____________ (Rupees __________________________________ only). Subject to adjustment of undisputed unpaid rent, utility dues and the reasonable cost of repairing damage beyond normal wear and tear, the balance security deposit shall be refunded within ___ days after the Lessee gives vacant possession and returns the premises and keys/access devices.

7. Inspection. The Lessee shall permit the Lessor or an authorised representative to inspect the Demised Premises during reasonable working hours after reasonable prior notice, except in a genuine emergency where immediate access is reasonably necessary.

8. Care of premises. The Lessee shall keep the interior of the Demised Premises in reasonably good and tenantable condition, subject to normal wear and tear, and shall not cause or permit avoidable damage.

9. Fit-outs and alterations. Subject to applicable building, fire, municipal and other legal requirements, the Lessee may install removable furniture, partitions, equipment and air-conditioning or other office fit-outs with the Lessor's prior written consent where required. No structural alteration shall be made without the Lessor's prior written consent and required statutory approval. At termination, the Lessee shall remove its installations if required and repair resulting damage.

10. Handover of possession. On expiry or earlier lawful termination, the Lessee shall hand over vacant and peaceful possession of the Demised Premises, remove its movable goods and clear the dues for which it is responsible. The parties should record the condition of the premises and meter readings at handover.

11. Access and common areas. Subject to building rules, security requirements and lawful restrictions, the Lessor shall not unreasonably interfere with the Lessee's lawful ingress to and egress from the Demised Premises or the Lessee's permitted use of common access areas and common utilities.

12. Assignment and subletting. The Lessee shall not assign, sublet, license, part with possession of, or otherwise transfer the Demised Premises or any part of it without the Lessor's prior written consent, except where this deed expressly provides otherwise.

13. Removal of Lessee's property. Before handing over possession, the Lessee may remove its movable furniture, equipment, fixtures and fittings, subject to restoring damage caused by such removal and leaving the premises in the condition required by this deed, reasonable wear and tear excepted.

14. Common-area maintenance. The Lessee shall pay the maintenance/common-service charges specifically allocated to it under this deed or charged by the building/maintenance agency for services such as common lighting, lifts, sanitation, security and fire-safety facilities, subject to receipt of applicable bills or statements.

15. Termination and notice. Subject to any agreed lock-in period and applicable law, either party may terminate the lease by giving ___ months' prior written notice to the other party or by such alternative arrangement as the parties expressly agree. Notice may be delivered personally, by registered/speed post, recognised courier or electronically to an agreed email address, with proof capable of establishing delivery.

16. Repairs. Structural defects and major repairs not caused by the Lessee, its employees, agents or visitors shall ordinarily be the Lessor's responsibility. Routine internal maintenance and minor repairs arising from the Lessee's occupation shall ordinarily be the Lessee's responsibility. The party discovering a material defect shall promptly notify the other.

17. Stamp duty and registration. The parties shall pay stamp duty and complete registration, where compulsory or otherwise agreed, in accordance with the law applicable at the place where the property is situated. For a lease that is required to be registered, the parties shall execute and present the instrument before the competent Sub-Registrar within the time permitted by law. The stamp duty, registration fee and incidental expenses shall be borne by ______________________________ / shared in the ratio ____________, subject to any statutory liability that cannot lawfully be varied by agreement.

18. Title, quiet enjoyment and indemnity. The Lessor represents that the Lessor has lawful authority to grant this lease and shall not unlawfully disturb the Lessee's possession during the lease term while the Lessee complies with this deed. Each party shall be responsible for loss caused by its own breach, unlawful act or material misrepresentation, subject to applicable law.

19. Overstay / holding over. If the Lessee remains in occupation after lawful expiry or termination without a written renewal or other lawful basis, the consequences shall be governed by this deed and applicable law. Any agreed use-and-occupation charge or enhanced amount shall be ₹____________ per month / ___ times the last monthly rent, to the extent legally enforceable, without prejudice to other remedies.

20. Taxes on rent and statutory deductions. GST, tax deduction at source and other taxes or statutory deductions, if applicable to the transaction or either party, shall be dealt with in accordance with the law in force from time to time. Where tax is deducted at source, the deducting party shall provide the prescribed certificate or evidence within the applicable time.

21. Compliance with law. Each party shall comply with laws applicable to its own obligations. The Lessee shall comply with lawful building-use, fire-safety, labour, environmental and business-licensing requirements relevant to its occupation and activity, while the Lessor shall comply with obligations that attach to ownership of the premises, except where the law or this deed validly provides otherwise.

22. Entire agreement and amendments. This deed records the agreement between the parties regarding the lease of the Demised Premises. Any amendment should be in writing and signed by the parties and, where required by law, duly stamped and registered.

23. Governing law and jurisdiction. This Lease Deed shall be governed by the laws applicable in India and the National Capital Territory of Delhi. Subject to any forum having mandatory jurisdiction under applicable law, disputes arising from this deed shall be subject to the jurisdiction of the competent courts/tribunals at Delhi.

IN WITNESS WHEREOF, the parties have executed this Lease Deed on the date and place first written above.