Transfer of Property Act Hub / Chapter V - Leases of Immovable Property
Transfer of Property Act, 1882 - Professional Corpus - Batch 07
Chapter V - Leases of Immovable Property
Convert lease creation, rent, covenants, termination, forfeiture and holding over into an evidence-backed lifecycle.
Statutory source control. The provision map is aligned to the India Code architecture. The official consolidated PDF and signed Gazette/State instrument control exact text, footnotes, territorial extension, exemptions and transaction-date law.
Dedicated Finin2min Summary - Chapter in 2 Minutes
- Section 105: Lease, lessor, lessee, premium and rent defined - convert every condition, exception and consequence into evidence-backed controls.
- Section 106: Duration and notice for certain leases - convert every condition, exception and consequence into evidence-backed controls.
- Section 107: Leases how made - convert every condition, exception and consequence into evidence-backed controls.
- Convert lease creation, rent, covenants, termination, forfeiture and holding over into an evidence-backed lifecycle.
- Apply current State stamp, registration, land, tenancy, RERA and procedural law before execution or litigation.
Current statutory text / controlled source map
Section-by-section provision map
| Provision | Subject | Status | Finin2min clause-by-clause decode | Implementation | Evidence/control |
|---|---|---|---|---|---|
| Section 105 | Lease, lessor, lessee, premium and rent defined | Operative subject to current official/State law | Section 105 governs lease, lessor, lessee, premium and rent defined. Identify actor, property/right, transfer event, statutory conditions, exceptions, notice and legal consequence within the lease lifecycle and termination framework. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
| Section 106 | Duration and notice for certain leases | Operative subject to current official/State law | Where contract/local usage does not govern, classify the purpose of lease, apply the statutory duration and serve a legally effective notice. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
| Section 107 | Leases how made | Operative subject to current official/State law | Section 107 governs leases how made. Identify actor, property/right, transfer event, statutory conditions, exceptions, notice and legal consequence within the lease lifecycle and termination framework. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
| Section 108 | Rights and liabilities of lessor and lessee | Operative subject to current official/State law | Section 108 governs rights and liabilities of lessor and lessee. Identify actor, property/right, transfer event, statutory conditions, exceptions, notice and legal consequence within the lease lifecycle and termination framework. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
| Section 109 | Rights of lessor transferee | Operative subject to current official/State law | Section 109 governs rights of lessor transferee. Identify actor, property/right, transfer event, statutory conditions, exceptions, notice and legal consequence within the lease lifecycle and termination framework. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
| Section 110 | Computation of lease term | Operative subject to current official/State law | Section 110 governs computation of lease term. Identify actor, property/right, transfer event, statutory conditions, exceptions, notice and legal consequence within the lease lifecycle and termination framework. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
| Section 111 | Determination of lease | Operative subject to current official/State law | Section 111 governs determination of lease. Identify actor, property/right, transfer event, statutory conditions, exceptions, notice and legal consequence within the lease lifecycle and termination framework. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
| Section 112 | Waiver of forfeiture | Operative subject to current official/State law | Section 112 governs waiver of forfeiture. Identify actor, property/right, transfer event, statutory conditions, exceptions, notice and legal consequence within the lease lifecycle and termination framework. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
| Section 113 | Waiver of notice to quit | Operative subject to current official/State law | Section 113 governs waiver of notice to quit. Identify actor, property/right, transfer event, statutory conditions, exceptions, notice and legal consequence within the lease lifecycle and termination framework. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
| Section 114 | Relief against forfeiture for non-payment of rent | Operative subject to current official/State law | Section 114 governs relief against forfeiture for non-payment of rent. Identify actor, property/right, transfer event, statutory conditions, exceptions, notice and legal consequence within the lease lifecycle and termination framework. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
| Section 114A | Relief against forfeiture in certain other cases | Operative subject to current official/State law | Section 114A governs relief against forfeiture in certain other cases. Identify actor, property/right, transfer event, statutory conditions, exceptions, notice and legal consequence within the lease lifecycle and termination framework. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
| Section 115 | Effect on under-leases | Operative subject to current official/State law | Section 115 governs effect on under-leases. Identify actor, property/right, transfer event, statutory conditions, exceptions, notice and legal consequence within the lease lifecycle and termination framework. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
| Section 116 | Holding over | Operative subject to current official/State law | Holding over requires the lessor's assent after expiry; mere continued occupation does not automatically create a renewed tenancy. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
| Section 117 | Agricultural leases exemption | Operative subject to current official/State law | Section 117 governs agricultural leases exemption. Identify actor, property/right, transfer event, statutory conditions, exceptions, notice and legal consequence within the lease lifecycle and termination framework. | Record title and authority, transaction dates, consideration, possession, instrument form, stamp/registration status, notice, approvals and third-party claims. Obtain State-specific review before execution or enforcement. | Official source snapshot; title chain; encumbrance/litigation search; authority; executed instrument; valuation; payment and tax proof; possession/delivery record; notices; registration receipt. |
Finin2min implementation explanation
Classification
Identify the property, interest, parties, consideration, possession and intended legal result. Separate agreement, conveyance, security, licence, lease and statutory transfer.
Title and authority
Verify chain of title, encumbrances, litigation, acquisition/land restrictions, co-owner rights, entity authority and power-of-attorney scope.
Form and perfection
Select instrument, attestation, stamp duty, registration, filing, notice, possession and security-perfection steps under current Central and State law.
Closing and change control
Block payment/possession until conditions are met. Preserve closing set, registration receipt and superseded drafts. Recheck law and searches on closing date.
Practical examples and calculations
Chapter-specific scenario.
A commercial occupier continues after the fixed term while the owner accepts selected payments. The file must distinguish expiry, notice, waiver, holding over, rent-control protection and damages for occupation.
| Calculation/control | Method | Evidence |
|---|---|---|
| Rent and escalation | Reconcile base rent, escalation formula, GST, TDS, maintenance, utilities and deposit. | Lease, invoices, bank and tax records |
| Termination clock | Compute contractual and statutory notice, service and expiry dates. | Notice, delivery proof and calendar |
| Possession exposure | Separate arrears, mesne profits/use charges, repairs, reinstatement and deposit set-off. | Inspection, photographs, invoices and valuation |
Practical transaction application
- Classify the transaction and every interest being created, transferred, reserved, charged or extinguished.
- Complete title, authority, encumbrance, litigation, land-use and possession diligence.
- Map each statutory provision to the instrument and identify State stamp, registration, RERA, tenancy and local-law overlays.
- Reconcile consideration, taxes, debt, possession, completion deliverables, representations, indemnities and notices.
- Approve closing, post-registration filings, evidence retention and enforcement/limitation strategy.
Authority, consent and execution controls
- Correct legal identity, title and capacity of transferor and transferee.
- Board, partner, trustee, guardian, co-owner, lender and regulatory consents.
- Power-of-attorney validity, scope, stamp and registration.
- Execution, witnessing, attestation, e-sign and document-custody protocol.
- Conflict, related-party and fiduciary approvals.
Stamp duty and registration alerts
- Instrument classification and market value are State-specific; obtain current rate and adjudication where ambiguity exists.
- Sections 54, 59, 107 and 123 must be read with the Registration Act and State amendments.
- Section 53A protection requires compliance with the post-2001 registration framework.
- Registration does not by itself cure defective title, authority, prohibited transfer or insufficient stamping.
Evidence and document-retention checklist
- Mother deed/title chain, revenue/municipal records and survey/property description.
- Encumbrance, ROC/CERSAI, litigation, acquisition, RERA and insolvency searches.
- Authority, consents, valuation, tax and KYC/beneficial-ownership records.
- Executed and stamped instrument, witness/attestation evidence and registration receipt.
- Consideration, TDS/GST, possession, originals handover and closing checklist.
- Notices, acknowledgments, defaults, cure, settlement and limitation chronology.
Performance, delivery and payment controls
- Define conditions precedent and long-stop date.
- Use escrow/retention for title releases and post-closing deliverables.
- Record possession condition and risk transfer separately from title.
- Reconcile taxes, charges, utilities, rent, deposits and apportionments.
- Do not release originals or consideration without authorised closing evidence.
Breach, loss, mitigation and remedy framework
- Separate invalidity, rescission, specific performance, injunction, possession, redemption, foreclosure/sale, damages, restitution and indemnity.
- Prove causation, remoteness, mitigation, market value and avoided cost.
- Identify third-party and bona-fide-purchaser protections.
- Protect title and possession through timely notices, registration, caveats and interim relief.
Limitation and forum controls
- Identify relief-specific limitation under the Limitation Act and special statutes.
- Confirm civil court, Commercial Court, RERA, DRT/DRAT, NCLT, consumer, revenue or arbitral forum.
- Compute notice, cure, redemption, termination, appeal and enforcement clocks independently.
- Check jurisdiction, valuation, court fee, territorial situs and exclusive-forum clauses.
Arbitration and mediation interface
Property disputes may be arbitrable where they concern subordinate contractual rights, but rights in rem, statutory forums, registration/title rectification and third-party interests require separate analysis. Preserve interim-relief, lis pendens, possession and limitation strategy even during mediation.
Company, partnership, GST and tax overlays
- Companies Act, LLP and partnership authority, charges and related-party controls.
- RERA registration, promoter/allottee rights and project disclosures.
- GST classification, works/development rights, lease and assignment treatment.
- Income-tax TDS, capital gains, section 50C/43CA/56 valuation and depreciation.
- FEMA, benami, PMLA/KYC, insolvency moratorium and secured-creditor priority.
Finin2min Q&A
What is the first professional step?
Classify the transaction and property interest before applying Chapter V - Leases of Immovable Property.
What is the most common failure?
Executing or paying before title, authority, State stamp/registration and third-party rights are independently verified.
Does a contract always transfer ownership?
No. The Act distinguishes contracts, completed transfers, security interests and possession-based protections; the required instrument and registration must be tested.
What should the matter file contain?
Official source, title chain, searches, authority, valuation, instrument, payment, possession, notices, tax records, registration proof and remedy/limitation analysis.
Chapter-specific decision flowchart
