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.
Legal Commentary & Landmark Judgments: Section 105
Section 105 of the Transfer of Property Act, 1882 defines a 'lease' of immovable property, establishing the transfer of a right to enjoy property in consideration of premium or rent.
The critical statutory hallmark of a lease is the transfer of the right of exclusive possession (an interest in immovable property), which distinguishes it from a revocable bare license under Section 52 of the Indian Easements Act, 1882.
Commercial landlords often utilize 'Leave and License' agreements to avoid rent control legislation and leasehold tenant protections. However, under Section 105, if exclusive possession of a shop or office is handed over to the occupant with unfettered day-to-day control, courts will look beyond the nomenclature and treat the agreement as a lease.