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What is Lease Deed?

Two minutes ago, one of my old student came to me to show some documents in which company accepted the proposal of lease and order to make lease deed under the conditions of company.

So, it is very interesting to know "what is lease dead"  for a commerce student. Lease deed is a simple agreement between owner of land and company who is interested to take land on rent. In this deed, many conditions like amount of rent, its increment rate and duration of lease etc. are mentioned and both parties accept these conditions by signing on this agreement.

Suppose, you have 30 square foot land which you want to give on lease to BSNL for tower purposes. Now BSNL approve your application and you will make lease deed under the condition of BSNL. BSNL can accept your proposal with the condition that company will be pay rent of Rs. 2800 for 20 years. Company will make tower on that land. Company will increase rent 10% after every 5 years. As owner, you will pay all taxes of land. You will cover that land by building four walls etc.

Before Writing Lease deed, you must think following points :

1st Point : Can you earn more profit from that land?

Future is uncertain, so think, can you earn more profit from that land? If yes, need not write and sign this lease deed.

2nd Point : Have you proof of ownership. You must be the registry of that land. Only possession is not sufficient for lease agreement.

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Accounting Education: What is Lease Deed?
What is Lease Deed?
Accounting Education
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