Rent agreement vs lease deed: which one do you need?

What each term usually means

A rent agreement is the short document most people sign for a home: an 11-month term, a monthly rent, a deposit and a list of simple rules. A lease deed is the longer, more formal version, normally for a year or more and often for commercial premises.

In law, a lease is a transfer of the right to enjoy property for a time in return for rent. The name on the top of the page matters less than what the document says and how it is stamped.

Registration and cost

A lease of more than one year has to be registered, which brings a registration fee and usually a higher stamp duty. That is why a lease deed is normally registered and a rent agreement for 11 months often is not.

Some states charge duty differently by term. Check the state page for the basis used where you live.

Where Maharashtra differs

In Maharashtra a home is normally let under a Leave and Licence agreement, which gives permission to occupy rather than an interest in the property. These agreements are registered whatever their length.

Which one for a home

For a straightforward residential rental of a year or less, a stamped rent agreement is usually enough. For a long fixed term, a business use or a large deposit, a registered lease deed gives both sides more certainty, and a lawyer is worth the cost.