Indian Commercial Real Estate Leases– Points To Ponder

Contractual lease provisions are freely negotiable in India. In the absence of a contract to the contrary, the Transfer of Property Act 1882 (“TOPA“) provides for certain rights and liabilities which govern the relationship between the landlord and the lessee. A lease deed is typically drafted by the landlord and thus, may contain several conditions that favour the landlord. It is however important to ensure that an effective commercial lease deed protects the rights of the lessee as well. In this Article, we have identified a few practical key issues of a lease and critical terms of a lease deed that a lessee should be watchful of. While negotiating a lease, the lease deeds should be examined closely and, more importantly, understood completely before you even consider signing one. The devil is in the details, after all.