Sale & Lease — KSLU Property Law Notes

Sale & Lease

A sale (s.54) is a transfer of ownership in exchange for a price paid or promised. For tangible immovable property of ₹100 or more (and for a reversion or intangible thing), sale can be made only by a registered instrument; for tangible property below ₹100, by registered instrument or delivery of possession. A contract for sale does not, of itself, create any interest in the property.

A lease (s.105) is a transfer of a right to enjoy immovable property for a time (or in perpetuity) in consideration of a premium or rent — the lessor parts with possession but not ownership. A lease of immovable property from year to year, or for a term exceeding one year, or reserving a yearly rent, requires a registered instrument (s.107). The respective rights and liabilities of lessor and lessee are set out in s.108.

flowchart TD
    A["Lease determines (s.111) — then lessee stays on"]:::root
    A --> B["Lessor ASSENTS / accepts rent<br/>-> HOLDING OVER (s.116)"]:::yes
    A --> C["Lessor does NOT consent<br/>-> tenant at SUFFERANCE (trespasser)"]:::no
    B --> B1["New tenancy renewed (year-to-year<br/>or month-to-month per rent basis)"]:::yes

    classDef root fill:#FFF8DC,stroke:#333,color:#000;
    classDef yes fill:#E6FFE6,stroke:#1E7A1E,color:#000;
    classDef no fill:#FFE6E6,stroke:#8A1E1E,color:#000;
    linkStyle default stroke:#888,stroke-width:1px;

A lease determines (s.111) by efflux of time, notice, forfeiture, merger, surrender, etc. Where a lessee continues in possession after determination and the lessor assents or accepts rent, the tenancy is renewed (holding over, s.116); without consent, the occupant is a mere tenant at sufferance.