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WHAT IS THE DIFFERENCE BETWEEN RENT DEED AND LEASE DEED?

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WHAT IS THE DIFFERENCE BETWEEN RENT DEED AND LEASE DEED?
What Is The Difference Between Rent Deed And Lease Deed?

The words “Rent Deed” and “Lease Deed” are often used for same purpose as nomencclature of a document/deed is not conclusive of what it seeks to achieve and the document has to be considered as a whole to ascertain whether it is a Rent Deed or a Lease Deed. Therefore, mere name/title of the Deed will not change the nature of the Agreement/Deed.

 Rent Deeds are executed where the property is rented for a shorter period on monthly rent basis. Mostly, the Rent Agreements are on month to month basis and expires at the end of each month or on a time period stated in the Rent Agreement. Whereas, Lease Deeds are executed for leasing out properties for a longer period and terminates at the end of a particular period as stated in the Lease Deed. The lease amount may not be payable on monthly basis. The lease amount is mostly payable on yearly basis or lease amount is payable for entire lease period.

The words “Rent Deed” and “Lease Deed” are intermingled at the time of executing deeds having different purpose. Therefore, the fundamental rule is to ascertain the intention of the parties from the terms of the deed to ascertain whether the said deed is a rent deed or lease deed.

Apex Court in Provash Chandra Dalui v. Biswanath Banerjee (1989 Supp (1) SCC 487) laid down the following proposition:- “’Ex praecedentibus et consequentibus optima fit interpretatio‘. The best interpretation is made from the context.

The above information is to impart awareness and no part of this should be construed as providing legal advice for any purpose.

Vikram Kumar

Advocate


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