Rights and Liabilities of the lessor:

1. the lessor is bound to disclose all material defects in the property to the lessee.he must also disclose all the known latent defects in the property to the lessee.However,he need not disclose the defects which are discoverable with ordinary care.This based on the principle of "Caveat Emptor".

2. The lessor is bound to put the lessee in possession of the leased property.The lessee however must first request the lessor tp out him in possession.If the lessee does not do so and fails to take possession,then he must not pay the rent for lease.

3. The lessor must indemnify the lessee for all losses incurred by the latter due to the interruption in the enjoyment of the property.In other words,it is an implied covenant that lessee will have free and quiet enjoyment of the property.The covenant for title runs with the land.

4. If the lessor transfers the leased property,then the transferee gets all the rights and liabilities of the lessor.However,for making the transferee liable,the lessee must elect to treat the transferee as the person liable to him.Further,the transferee is not entitled to any arrears of rent due before the transfer.

Rights and Liabiliies of the Lessee :

1. During the continuation of the lease,if any accession is made to the property,then such accessed property must also be returned with the main property to the lessor.In other words,"Accessory follows the principle"in the accessed lands.

2.If part of the property is destroyed by fire then the lease becomes void at the option of the lessee.However,such destruction of the property must not be due to the wrongful act of the lessee.

3. If the lessor neglects to make sufficient repairs even after notice by the lessee.The lessee can make such repairs himself and can deduct the expenses of such repairs with interest from the rent.

4. If the lessor neglects to make payment of revenue,tax,etc.,then the lessee can make such payment and deduct such payments from the rent with interest or recover the amount from the lessor with interest.

5. After the termination of the lease,the lessee can remove all the things,which he had attached to the earth but the must leave the property in the same state as he received it.

6. If the lease is terminated by some uncertain events,then the lessee or his legal representatives can get all the crops harvested by them and to have ingress and egress together with the produce and carry them.

7. The lessee may sub lease or mortgage the property in the absence of any express provision in the lease deed.

8. The lessee is bound to disclose to the lessor any material increase in the value of the property known to him only.

9. The lessor is bound to pay the premium or the rent to the lessor or his agent at the proper time or place.

10. The lessee is bound to keep the property in good condition.He must return the property in the same condition as he obtained it.He must allow the lessor and his agent to enter upon the land and inspect the condition of the land at all reasonable time of the day.He must give notice of all the defects in the land to the lessor.

11. The lessee must use the property as a person of ordinary prudence.He must not use the property for any purpose other than the purpose for which it was leased.

12. If the lessee becomes aware of any encroachment on the property,he must give immediate notice to the lessor for taking steps against such encroachment.

13. The lessee must not construct any permanent structure on the leased property without the lessor's constent.But for agriculture purpose,he can construct such permanent structure,even without the constent of the lessor.

14. After the termination of the lessee,the lessee is bound to return the leased property to the possession of the lessor.

This article is very useful to Lessor and Lessee to know their rights and liabilities of the property in the Transfer of the property act.


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