Sale Agreement
Buying or selling property? Lock in the price, advance, timelines and conditions with a sale agreement drafted by a property lawyer before the sale deed.
Documentation
Commercial Lease Agreement Drafting
Lease a shop, office or warehouse with confidence. We draft a balanced lease covering rent, escalation, lock-in, deposit, maintenance and exit.
- 1–3 working days
- Lock-in & escalation clauses
- Landlord or tenant side
- Registration guidance
What is a commercial lease agreement?
A commercial lease agreement is the contract between a landlord and a business renting premises – an office, shop, showroom, warehouse, clinic or factory. It covers far more than a residential rent agreement: longer terms, lock-in periods, rent escalation, fit-out time, GST on rent, signage and how the premises must be handed back. Because large sums and long commitments are involved, it should be negotiated and drafted with care.
Key clauses in a commercial lease
| Clause | Why it matters |
|---|---|
| Premises and area | Carpet, built-up or super built-up area, car parks and common areas – rent is often charged on super built-up area |
| Term and renewal | Commercial leases often run for 3 to 9 years, with renewal options and an agreed increase at each renewal |
| Lock-in period | Neither side can end the lease during the lock-in without paying the agreed compensation |
| Rent and escalation | Monthly rent, due date and the increase – commonly 5–15% every year or every three years |
| Security deposit | Often several months' rent, with clear refund terms on exit |
| Rent-free fit-out period | Time for the tenant to complete interiors before rent starts |
| Maintenance and charges | Common area maintenance, utilities, property tax and insurance – who pays what |
| Use and compliance | Permitted business use, trade licence, fire safety and other approvals |
| Alterations and signage | What the tenant can change, and what must be restored at the end |
| Sub-letting and assignment | Whether the tenant can share or transfer the premises, including to group companies |
| Termination and handover | Notice period, events of default and the condition of the premises at handover |
| Indemnity and disputes | Liability for damage, insurance and arbitration |
Checks before you sign a commercial lease
- Ownership – the landlord owns the premises or is authorised to lease them; for a sub-lease, the main lease must allow it
- Approved use – the building is approved for commercial use and has an occupancy certificate
- Approvals for your business – the fire safety, pollution, trade licence and signage permissions you will need at this address
- Power, parking and access – sanctioned electrical load, power backup, parking and the building's working hours
- Dues and disputes – property tax and maintenance paid, and no dispute or bank charge affecting the premises
Registration and stamp duty
A lease for more than a year must be registered with the sub-registrar. An unregistered long lease cannot be relied on in court to prove its terms, which leaves both sides exposed. Stamp duty is set by each state – usually based on the average annual rent, the deposit and the term – and is usually paid by the tenant or shared, as agreed. We tell you the duty for your state and guide you through registration.
GST and TDS on commercial rent
- Renting commercial property is a taxable service: a GST-registered landlord charges 18% GST on the rent, which a registered tenant can usually claim as input tax credit.
- If the landlord is not registered for GST and the tenant is, the tenant may have to pay the GST under reverse charge.
- Businesses paying rent above the threshold must deduct TDS on the rent and file TDS returns – see TDS return filing.
Landlord or tenant – we protect your side
For landlords, we focus on rent security, the deposit, use restrictions, default and eviction rights, and restoration of the premises. For tenants, we focus on a fair lock-in, capped escalation, a rent-free fit-out period, renewal rights and the landlord's obligations for repairs and approvals.
Using the lease for registrations
A registered lease is accepted as proof of your place of business for GST registration, your shop and establishment licence and a trade licence. Need a business address without renting space? See our virtual office. For homes and flats, use a rent agreement. If a dispute arises over rent, the deposit or possession, a legal notice is usually the first step.
Documents required for Commercial Lease Agreement
After you purchase, log in to My Account → My Services and upload each document below. Scanned copies or clear phone photos (PDF, JPG or PNG) are fine. Your files are stored privately and seen only by your assigned expert.
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ID proof of landlord and tenant PAN and Aadhaar of individuals / authorised signatories Required
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Ownership proof of the property Title deed or latest property tax receipt Required
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Incorporation certificate / GST certificate of tenant If the tenant is a company, LLP or firm If applicable
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Board resolution / authorisation letter For signatories of companies or LLPs If applicable
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Agreed commercial terms Rent, deposit, escalation, lock-in, tenure and fit-out period Required
Commercial Lease Agreement process with Nevo Legal
Consultation
Connect with our legal experts and discuss your sale agreement requirements.
Document Drafting
Our legal team drafts a detailed, legally compliant agreement tailored to your needs.
Review & Modifications
We provide the draft for your review and make necessary modifications.
Finalization & Execution
Once finalized, the agreement is signed by the parties involved.
What you get
- Customized Sale Agreement Draft
- Expert legal drafting and review
- Amendments and modifications
- Guidance on execution, notarization, and registration
Commercial Lease Agreement – frequently asked questions
Does a commercial lease need to be registered?
Leases for more than 11 months (or from year to year) must be registered under the Registration Act. Many commercial leases are therefore registered.
What is a lock-in period?
A lock-in is a minimum period during which neither party can terminate the lease without paying the agreed compensation.
What is a typical rent escalation?
Commercial leases commonly provide for an increase of 5–15% every year or every three years, as negotiated.
Who pays the stamp duty?
It is usually borne by the tenant or shared equally, as agreed between the parties.
Is GST payable on commercial rent?
Yes. A GST-registered landlord charges 18% GST on commercial rent. If the landlord is unregistered and the tenant is registered, the tenant may have to pay it under reverse charge.
Can the landlord end the lease during the lock-in period?
Usually not. A lock-in normally binds both sides unless the tenant defaults; the clause should say so clearly.
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