Transfer of Property Act Section 107 — Leases how made

CHAPTER V OF LEASES OF IMMOVEABLE PROPERTY

General

Summary

A lease of property that lasts for more than one year, runs from year to year, or involves paying rent on a yearly basis must be created through a registered document. All other leases can be made either through a registered document or through a simple oral agreement, as long as the property is handed over to the tenant. When a lease is made through a registered document, both the landlord and the tenant must sign it. The state government can, through an official notice, allow certain other types of leases to be made without registration or without handing over possession.

Official Text

A lease of immoveable property from year to year, or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument. 2[All other leases of immoveable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession. 3 [Where a lease of immoveable property is made by a registered instrument, such instrument or, where there are more instruments than one, each such instrument shall be executed by both the lessor and the lessee:] Provided that the State Government may, 4*** from time to time, by notification in the Official Gazette, direct that leases of immoveable property, other than leases from year to year, or for any term exceeding one year, or reserving a yearly rent, or any class of such leases, may be made by unregistered instrument or by oral agreement without delivery of possession.]