A lease is the transfer of a right to enjoy certain property. It is either for a certain period or perpetuity. It is an agreement by which the owner of the property or the lessor transfers his right of possession to the lessee. It is not an absolute transfer of all rights in the property. It is merely a partial transfer. what is transferred is merely the right of possession and the use of the property. It separates ownership from property. Ordinarily, a lease is with respect to land. However, every right that can be possessed can be made the subject of a lease. Thus there can be a list of Copyright, a patent, right of way, right to receive interest on government promissory notes.
Definition of Lease -
Section 105 of the Transfer of Property Act, 1882 defines "Lease". According to Section 105 of the said Act, "A lease of immovable property is a transfer of a right to enjoy 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 specified 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 other thing to be so rendered is called the rent.
In a lease, the transfer of immovable property is not absolute transfer like a Sale. The ownership and possession get separated from the certain period but after the expiry of the specified period possession again get merged into ownership.
Essentials of the Lease -
1) Competency-
The lessor (The transferor, who is able to make a lease) and the lessee (The transferee) must be competent. A lease to a minor is void.
2) Subject Matter-
The subject matter of the lease must be immovable property.
3) The Immovable property must be Transferable property.
4) There must be a transfer of right to enjoy such property
5) The lease must be made for the specific period (a certain time), express or implied or in perpetuity.
5) The consideration which may be premium or rent or both.
6) The lessee must accept the transfer.
7) In lessee, there is a separation of ownership and possession.
8) The lease must be created as per the provision prescribed in section 107 of the Transfer of Property Act, 1882.
See also...
Mortgage: Meaning, Definition, Essentials and Registration of Mortgage Deed
Mortgage: Rights of Mortgagor | Property Law
Mortgage: Liabilities of the Mortgagee | Property Law,