Is an Agreement to Lease or a Lease Deed required to be registered with any authority?
An instrument, which is intended to vest the right of exclusive possession in the lessee, either at present or in the future, is a lease which creates lessor-lessee relations. On the other hand, an instrument which only binds the parties–one to create and the other to accept a lease — is an agreement to lease. This does not create any relationship between the lessor and the lessee.
An agreement to lease within the purview of Section 105 is not required to be registered by the Transfer Of Property Act. But the agreement to Lease must be registered under s. 17(1)of the Registration Act, 1908, when the paramount intention of the parties is to create an immediate and present demise as held in T.N.Habib Khan v. Shanti Lucian [AIR 1982 Mad. 156(170)
An agreement to lease is not required to be registered. A Deed of Lease, by which the demise is created, has to be registered with an authority known as the Sub-Registrar of Assurances, constituted under the Indian Registration Act. Provisions regarding registration are contained in both Sec. 107 of the Transfer of Property Act and in Sec. 17 of the Indian Registration Act. Under both these provisions, leases of immovable property from year to year or, for any term exceeding one year or, reserving a yearly rent, have to be registered with these registering authorities.
Under Section 55(1) of the Maharashtra Rent Control Act,1999, any agreement for Leave and Licence or letting of any premises, entered into between the landlord and the tenant or the licensee, as the case may be, after the commencement of the Act[ 31st March,2000], shall be in writing and shall be registered under the Registration Act, 1908.