To make it legally valid
- Prepare and verify the commercial rental agreement.
- Print the document on stamp paper of recommended value. Each state has its own guidance on stamp duty charges. Keep in mind that leases for a period of over a year must be compulsorily registered at the Sub-Registrar’s office.
- The tenant and landlord must place their initials on all pages and signature on the last page designated for signature.
- The witnesses must place their signatures at designated places.
- Tenant will pay for stamp charges and keep the original copy of the agreement. Landlord keeps the duplicate copy.
Alternatively, you can buy two sets of stamp papers and both parties can keep one copy.
Most commercial leases do not stick to a standard format. However, like most legal documents, office space leases also require some basic elements to make them legally valid.
The names and addresses of the landlord, tenant and the property intended to be leased out must be clearly spelled in the contract. Any change in the spelling can cause unnecessary headaches.
Term of the lease, lump sum/ rent to be paid to the landlord and its interval, clauses agreed upon between landlord and tenant and other important conditions must be clearly mentioned in the contract. Vague or obsolete clauses leave everyone in a contract vulnerable should a dispute arise.