- The permanent transfer of property in India is a difficult task, as the economic condition of the middle class does not permit an absolute transfer of property.
- In this situation, the concept of transferring property for a temporary period is given in Section 105 of the Transfer of Property Act.
- The transfer of property for a limited period in India is known as a lease. The basic idea behind the concept of the lease is the interest in the property is transferred to the other person for a definite period, but the right of the ownership of the property stays still with the actual owner, and the deed of gift is not considered as a lease.
What does section 105 of the Transfer of Property Act say?
The meaning and the definition of the term lease have been defined under Section 105 of the Transfer of Property Act as a transfer of immovable property for a particular given period which has been accepted by the poor parties involved in the agreement for consideration.
Section 105 of the Transfer of Property Act says-
“A lease of immovable property is a transfer of a right to enjoy the such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specific occasions to the transferor by the transferee, who accepts the transfer on such terms. Lessor, lessee, premium, and rent defined.—The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service, or another thing to be so rendered is called the rent.”
What are the essentials of a lease?
- Parties who are involved in the contract of leaves under section 105 of the Transfer of Property Act should be competent to each other, which means that the transfer of all the lesser should have the actual rights of the transferring property. That is, he should be the sole owner of that property.
- It should be noted that the right of position in Section 105 of the Transfer of Property Act does not mean the transfer of the ownership of the property from the lesser to the lessee; it is the transfer of interest and the possession of the same.
- The consideration involved in the temporary transfer of property is mostly revolving around the interest of rents or money as per Section 105 of the Transfer of Property Act.
- The terms and conditions as per Section 105 of the Transfer of Property Act revolving around the lease of the property should be accepted by the lessee who has the interest in the property within a given period by the lesser.
- The period described under Section 105 Transfer of Property Act is always described in the lease agreement between both parties, but there is an option on the side of the lesser that he can change or relax it according to his will.
Rights of the lesser according to Section 105 of the Transfer of Property Act
- Always has a right to claim the rent on the property which has been given on lease to the lessee.
- Has the right to take back the property which has been given in the lease.
- Whatever damages have been caused to the property during the lease can be recovered back from the lessee.
- The property can also be taken back when there is a termination of the period which was specified during the lease agreement.
Rights of the Lessee according to section 105 Transfer of Property Act
- If there are any changes made under the time specified for the period of the lease given, then these new changes will be considered under the same lease agreement as per section 105 of the transfer of property act.
- Lessee has a right against the damages done by the act of God, fire, flood, etc. In these cases, the lesson does not have any liability to pay to the lesser as the damages have been caused by external forces as per section 105 of the Transfer of Property Act.
Section 105 of the Transfer of Property Act is about the concept of the lease what it is Section 111 talks about the termination of the lease by seven factors such as:
- time limit or the period for which the lease was given expires,
- lease depending on the specific event,
- interested of the lessor has now changed,
- when the lessor and lessee become the same person, that is, the ownership rights are transferred,
- when the lessee loses interest in the property,
- when the actions of the lessee implied,
- when the breach of agreement happens,
The topic of the lease under section 105 of the Transfer of Property Act is a very important issue in day-to-day life. In our life, every person has seen a rent agreement or lease deal involving property such as a house, a car-bike, etc.
The general public needs to know about the technology involved in the temporary transfer of a property that is leased by one person to another. Section 105 of the Transfer of Property Act talks about the temporary deed of gift and the lease transfer of property and the laws and regulations revolving around it.