Who is a lessor?

A property owner who plans to rent his property must sign a lease agreement, which is one of the important legal steps. The agreement specifies the terms and conditions of the lease. According to the legal definition, a lease refers to an agreement wherein one party (known as the lessor) transfers the right to use an immovable property or land to another party (known as the lessee). In this article, we will understand the meaning of a lessor and his rights when renting a property.

What is a lease agreement?

According to Section 105 of the Transfer of Property Act, 1882, a lease refers to transfer of right to use an immoveable property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or 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. The transfer of such rights is made through a registered agreement, known as a lease agreement.

In a lease agreement, one will find the following terms:

• Lessor: The transferor of the immovable property.
• Lessee: The transferee of the immovable property.
• Premium: The price paid for obtaining a lease of immovable property.
• Rent: The money or service rendered.

Who is a lessor?

A lessor refers to the owner of an immovable property who has leased or rented the property to another party, which can be an individual or an entity, the lessee, through a lease agreement. In other words, the lessor is the landlord who has allowed the tenant to use his property for a specified period in return for a defined amount as the rental income.

After the lease agreement is signed, a lessor continues to retain the ownership of his property. According to the law, the lessor is given certain rights and has certain liabilities that he must fulfil.

What are the rights of a lessor?

• Right to collect rent: A lessor has the right to collect rent from the tenant, as specified in the terms and conditions of the lease agreement.
• Right to accretions: If any further accretion, accumulation, or addition is made in the property during the tenancy period or during the duration of the tenancy, the lessor is entitled to such property.
• Right to terminate the lease: Both the lessor and lessee can mutually agree to end the contract.
• Forfeiture of a lease: A lease can be terminated through forfeiture, under which a lessor has the right to re-enter and reclaim his property.

Liabilities of a lessor

• A tenant or a lessee has the right to use the property, and the lessor cannot cause any form of interruption during the tenancy period.
• The lessor must disclose any form of a material defect in the property. The defects are of two types – a latent defect that cannot be discovered rationally or through inspection by the lessor and another is an apparent defect that can be easily discovered through inspection.
• The lessor must allow possession of the property by the lessee upon the request from the lessee. However, this liability arises only when there is a specific request from the lessee.

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