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Nov 304 min read

What Are The Legal Consequences Of Breaking A Lease

A Lease Is An Agreement Wherein The Lessor Grants To The Lessee The Temporary Use And Enjoyment Of A Thing, In Whole Or In Part, For A Consideration (Rent). If The Subject Of The Lease Is Real Estate Property, Then The Lessor Is Usually The Owner And The Lessee Is The Tenant. Here, It Is Contemplated That The Rent Can Be Cash Or Any Part Of The Profits Of The Property.



Leases For Apartments Or Rentals In India Have Different Provisions When Tenants Want To Move Out Before The Expiration Of The Lease. The Common Goal For Most Tenants Is Not To Be Obligated To Pay Any More Rent After Vacating The Premises. However, If They Do Not Strictly Comply With Some Criteria Prescribed By The Indian Landlord-Tenant Law, Then They Must Face Consequences And Penalties.


Of Course, If You're A Landlord, You Need To Familiarize Yourselves With All These Provisions So That You Can Prepare If Your Tenant Tries Breaking The Lease Early. That Way You Will Ensure You Get Compensated For All The Potential Money You Could Lose While Having Your Rental Unit Vacant.


Laws Governing Lease


  • Rent Control Act: The Rent Control Act Primarily Influences The Lease Agreement Law In India As It Is The Basic Framework For Rent Regulation In The Entire Country. This Act Fixes Fair Rent Based On The Nature, Location, And Area Of Property By The Court. This Act Works As A Ceiling For Tenants And Thus Creates An Evenly Balanced And Regulated Renting System That Balances The Interests Both Of The Tenant And The Landlord.

  • The Registration Act, 1908: Registration Act 1908 Is A Landmark Legislation Dealing With The Registration Of Documents In India And Covers Lease Agreements. Under The Provisions Of This Act, Registration Lends Legal Sanctity To A Lease, Hence Constituting Irrefutable Evidence Of Its Existence And Terms. This Formal Procedure Adds Authenticity To The Documents So As To Safeguard And Provide Transparency For Parties Entering Into Such A Lease. The Registration Act Forms A Secure And Legally Recognized Platform For Property Transactions And Infuses The Necessary Transparency And Reliability In Leasing Across The Country.

  • Transfer Of Property Act 1882: The Transfer Of Property Act 1882 Holds Very Important Information Regarding The Legal Implications Of Leasing. It Mentions The Term Lease, Constitutes Of A Valid Lease, And Lays Down The Rules For The Determination Of A Lease.


The Legal Consequences Of Breaking A Lease


  • Both Parties Should Look Carefully Through A Lease To See Their Rights And Duties Concerning Early Lease Termination. Most Leases Will Specify Conditions For Which It Is Acceptable To Break A Lease And Could Enumerate Penalties For Doing So.

  • While Many Lease Agreements Have A Notice Term That Must Be Given Before The Lease's Termination, Failing To Provide Adequate Notice May Lead To Liability For Rental Costs For The Term Of Notice Or Other Penalties.

  • Indian Law Provides An Early Termination Of A Tenancy Under The Following Conditions:


1. Non-Payment Of Rent.

2. Breach Of Contractual Terms.

3. Breach Of Statutory Rules.


  • Landlords Are Required To Observe Law Procedures For Eviction, Which Usually Include The Issuance Of A Notice Stating The Grounds For Evicting The Tenant And Giving The Tenant The Opportunity To Rectify The Situation.

  • If A Landlord Desires To Evict A Tenant Before The Termination Of The Lease Term, There Are Specific Procedures That A Landlord Ought To Follow. These Are Procedures Including Giving Appropriate Notice And Following Court Procedures.

  • In Essence, Tenants Should Not Be Subjected To Arbitrary Eviction Procedures, And Where Possible, They Can Challenge Eviction Notices In Courts If They Feel That Their Rights Have Been Derogatorily Violated.

  • If The Lease Is Terminated Early, Either Party Can Be Compensated Against Losses Due To Early Termination Such As Loss Of Rental Income And Re-Location Costs.

  • Parties May Agree To Refer Disputes Arising From Terminating The Lease For Mediation Or Arbitration. In Some Instances, Mediation Or Arbitration Can Be Faster And Cheaper Than Litigation.

  • It Is Advisable For Both Landlords And Tenants To Seek Legal Advice When Dealing With Issues Related To Premature Lease Termination. A Qualified Lawyer Can Provide Guidance On Rights, Obligations, And Potential Courses Of Action.


One Good Way To Protect Yourself As Well As The Tenant From Later Problems Is To Include An 'Early Termination Clause' In Your Lease. Keep Frequent And Regular Communication With Your Tenant, So They Know And Understand The Terms Of Your Lease As Well As The Consequences Of Breaking One Without Any Valid Reason. Even If These Clauses Do Not Prevent A Tenant From Ending The Lease, They Can Help You Get Compensated In Case Something Goes Wrong.


For Any Legal Help, Contact Lead India. We Offer Free Online Legal Consultations And Other Legal Services. On Our Platform, You Can Talk To Experienced Lawyers. You Can Freely Ask Any Legal Question. We Also Provide The Solutions To All Your Legal Problems.


Visit Us: — www.leadindia.law

Call Us: +91–8800788535

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