Rent Agreement of Commercial Property for use of space for Office, shop or business purpose

Format of Rent Agreement of Commercial property to use it for shop, officer or Business.

Rent Agreement for Commercial purpose or short term or long term rental agreements are used to lay down the terms and conditions before a space is rented out for commercial purposes. Any person who wants to set up a business in a rental property can use a commercial Rent Agreement. According to the Registration Act, 1908, the registration of a lease agreement is mandatory if the leasing period is more than 12 months. So, most rent agreements are signed for 11 months so that they can avoid stamp duty and other charges.

Sample Format of Rent Agreement of Commercial Property is given below.

 

RENTAL AGREEMENT FOR COMMERCIAL PROPERTY

THIS INDENTURE of lease is made at _________ this Day___ of _______ 20__, BETWEEN

____________________, Son of ____________________ resident of ____________________, Address ____________________ ____________________, (hereinafter called "the Landlord", which expression shall, unless repugnant to the context and meaning include his heirs, successors, administrators and assigns) of the ONE PART and

____________________, Son of ____________________ resident of ____________________ ____________________ ____________________
(hereinafter called "the Tenant", which expression shall, unless repugnant to the context and meaning, include its successors and assigns) of the OTHER PART.

WHEREAS the Landlord is absolutely seized and possessed or otherwise well and sufficiently entitled to the premises at ____________________, ____________________  with a total area of _______ square feet.

AND WHEREAS on the request of the Tenant, the Landlord has agreed to grant lease in respect of the demised premises for a term of __ Months in the manner hereinafter appearing.

 

NOW THIS DEED WITNESSETH AS FOLLOWS:

1. In pursuance of the said agreement and in consideration of the rent hereby reserved and of the covenants, conditions and stipulations hereinafter contained and on the Tenant's part to be paid, observed and performed, THE LANDLORD HEREBY DEMISES UNTO THE Tenant ALL THAT the building situated at ____________________ ____________________ ____________________ and hereinafter called as the demised premises, TOGETHER WITH ALL the fixtures and fitting therein, TOGETHER WITH the electrical installations and together with the right for the Leesse, its employees, servants, agents, customers and persons authorized by the Landlord to use the entrances, doorways, entrance hall, staircases, landings and passages in the demised premises for the purpose of ingress thereto, TO HOLD the demised premises unto the Tenant for the period of ____________ only commencing from the ______ and determined on _________ but determinable earlier as hereinafter provided PAYING therefor unto the Landlord during the said term monthly rent of Rs. ______per Month payable by the __ day of of each succeeding calendar month to which it relates.

2. The Tenant hereby covenants with the Landlord as follows:

a. To pay the rent as aforesaid on the days and in the manner aforesaid.

b. To pay the electricity bills for the electricity consumed for lighting the demised premises and for operation of air conditioners, fans, computers and electrical appliances in the demised premises.

c. Not to make any structural alterations into or upon the demised premises or make any alterations or additions to the external appearance or any part of the demised premises without the previous consent of the Landlord in writing.

d. To use the demised premises for office purposes of the Tenant.

e. Not to do or suffer to be done in or upon the demised premises or other parts of the said building in common with other persons anything whatsoever, which may be or become a nuisance or annoyance to or in any way interfere with the quite or comfort of the Landlord or other Tenants and occupiers of the said building.

f. Not to place or keep or permit to be placed or kept on the demised premises any offensive, dangerous or highly inflammable or explosive material or any other article or things, which may constitute a danger, nuisance or annoyance to the demised or surrounding premises or the owners or occupiers thereof.

g. Not to sub-let, transfer, assign or part with the possession of the demised premises or any part thereof.

h. To permit the Landlord, his servants, employees or agents duly authorized by him to enter into and upon the demised premises at all reasonable times for viewing the condition of the demised premises or doing such works or things as may be requisite or necessary for any repairs, alterations, servicing or improvements to the demised premises.

i. To hand over the peaceful possession of the demised premises at the end or the sooner determination of the said term together with all the Landlords fixtures and fittings in as good condition as received, fair wear and tear, damage by fire, acts of God, riots or other civil unrest, war, enemy action and/or other cause not within the control of the Tenant, being excepted.

j. Not to obstruct or suffer to be obstructed the entrance hall, entrances, doorways, passages, staircase or lifts.

k. To replace all broken fittings and fixtures by equally good or better substitutes.

l. To insure and keep the demised premises insured against loss or damages by fire with an insurance company approved in writing by the Landlord for an amount which shall not be less than

3. To Landlord doth hereby covenant with the Tenant as follows:

a. That on the Tenant paying the rent on the due dates thereof and in the manner herein provided and observing and performing the convents, conditions and stipulations herein contained and on his part to be observed and performed, shall peaceably and quietly hold, possess and enjoy the demised premises during the term without any interruption, disturbance, claim and demand by the Landlord or any person lawfully claiming under or trust for the Landlord.

b. To keep the interior, exterior of the demised premises, the drainage thereof in good and tenable repair and condition.

c. To keep the entrance, doorways, entrance halls, staircases, lobbies and passages in the said building leading to demised premises well and sufficiently cleaned and lighted at his own expense.

d. To pay rates, taxes, assessment, duties, cess, impositions, outgoings and burdens whatsoever payable to State or local or other authority, which may at any time or from time to time during the term hereby created be imposed or charged upon the demised premises.

4. It is hereby agreed and declared that these presents are on the express condition, that if the rent or any part thereof payable in respect of the demised premises shall be in arrears for a period of [two months] or by if the Tenant shall omit to perform or observe any covenants or conditions on the Tenant's part herein contained, the Landlord may re-enter upon the demised premises provided that the Landlord has served a notice to the Tenant and a period of [one month] has elapsed after the issue of such notice, the Tenant does not pay the rent or does not perform or observe the covenant or condition and thereupon this demise and all rights of the Tenant hereunder shall determined.

5. This Lease Deed shall be executed in duplicate. The original shall be retained by the Landlord and the duplicate by the Tenant.

6. The marginal notes and the catch lines hereto are meant only for convenience of references and shall not in any way be taken into account in the interpretation of there presents.

 

IT IS HEREBY EXPRESSLY AGREED BETWEEN THE PARTIES AS FOLLOWS:

a. The Tenant shall be entitled to erect fittings, fixtures, wooden partitions, cabins or make any such additions or alterations, as may be necessary for its use by the Tenant; provided that the Tenant shall remove the said fittings, fixtures, wooden partitions, cabins, additions or alterations and restore the demised premises to the Landlord on the expiry of the term of sooner determination of the lease in the same condition as existed before making such changes.

b. If the Landlord fails to pay the taxes, charges, assessments payable by him, or fails to carry out the necessary repairs and other work which he has to carry out as provided herein, the Tenant may after __ month notice in writing, pay, discharge and carry out the same at its own cost and the Tenant may set off the same from the rent payable to the Landlord under these presents.

IN WITNESS WHEREOF, the Landlord has set its hands unto these presents and a duplicate hereof and the Tenant has caused its common seal to be affixed hereunder and a duplicate hereof on the day, month and year first hereinabove written.

WITNESSES                                                                                            OWNER
1.
 

TENANT

2.
   

Relevant Sections of Transfer of Properties Act 1882

Section 105 "Lease defined"

105. A lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.

 

Lessor, lessee, premium and rent defined.

The transferor is called the lessor, the transferee is called the Tenant, the price is called the premium, and the money, share, service or other thing to be so rendered is called the rent.