Oct 30, 20233 min read

What Is Difference Between Lease Deed And Lease Agreement?

When problems emerge between renters and landlords, one of the most frequent duties performed by a commercial property manager on a daily basis is examining the Deed of Lease. The lease is usually rather explicit, but occasionally there are ambiguities that make it hard for the parties to come to an understanding. Since most problems have been handled by experienced property managers, we can offer advice on how similar problems have been resolved in other instances.

Knowing the distinctions between the typical contracts used for commercial leasing agreements is crucial, regardless of whether you want to lease a business property as a tenant or have an interest in leasing your own.

It occasionally happens that one or both parties sign these business documents without fully understanding the implications, which might leave them shocked and, in certain situations, financially disadvantaged.

Lease Agreement v Lease Deed: Key Differences

The kind and duration of a lease, in addition to the regulations in your area, will determine whether you choose a lease agreement or a lease deed. The key differences are as follows:

LEASE AGREEMENT

The landlord and tenant will first discuss the terms of the lease and document their agreement in an Agreement to Lease. Usually, this is the first step that comes before signing a lease.
It is a less formal and flexible document.
The document is not required to be registered with the government.
For a short-term lease, the lease agreement is employed.
Lease agreements are appropriate for somewhat simple leasing arrangements since they may contain fewer explicit terms and restrictions.
As contracts, lease agreements may be enforced in accordance with local landlord-tenant laws and contract law.
Depending on the conditions and the amount of rent, lease agreements may demand the payment of stamp duties in certain countries.
Less rigorous termination clauses may be found in lease agreements, which make it simpler for both parties to end the agreement of lease with sufficient notice.

LEASE DEED

The landlord and tenant will execute a Lease deed, which is often produced by the landlord's attorney and is most frequently on the ADLS form if all requirements in the lease agreements are met.
It is an official document that is quite detailed.
They are required to be registered with the relevant government.
For a longer-term lease, the lease deed is employed.
In lease deeds, particular rights and obligations of both parties are outlined in great detail, which are typically more thorough and extensive.
When registered, lease deeds have greater legal protection and are typically regarded as having more secure property rights.
Stamp duty is usually payable on lease deeds and is computed according to the length of the lease as well as the rent amount.
Lease Deeds may contain more stringent restrictions for ending a lease, frequently requiring a good reason and a more official procedure.

Role of a Lawyer: Lease Agreements and Lease Deeds

Therefore, it is advised that you consult with your lawyer before to signing either an Agreement to Lease or a Deed of Lease. They are going to be able to look over the documents alongside you and work out any significant adjustments that could be necessary given your unique situation.
Even if you already possess an Agreement to Lease, we nevertheless advise you to sign a Deed of Lease. Before executing any Agreement to Lease, commercial renters and landlords should be fully aware of the contents of a Deed of Lease. As different market circumstances affect firms, we are needing to consult these lease contracts more often.

Some tenants must be having trouble making their rent payments; they are unsure of who is responsible for maintenance concerns; and they are unsure of how to assign their leases. Having a thorough Deed of Lease makes things easier for everyone.

Tenants should be aware of the terms and circumstances of the kind of lease they are signing before accepting the Lease Deed form, as the Lease Agreement typically binds them to those terms and conditions.

One can talk to a lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free legal advice online, one can also ask a legal question to the experts online free through Lead India.