What Is a Sub Lease Deed?
In Gautam Budh Nagar (which includes Noida and Greater Noida), most residential and commercial land is leased by the government (e.g., NOIDA or GNIDA authorities) to developers. These developers then construct buildings and sub-lease individual units to buyers.
Key features of a Sub Lease Deed:
- Legal possession: It transfers possession of the unit to the buyer.
- Limited ownership: The buyer becomes a sub-lessee, not a full freehold owner.
- Registered document: It must be registered under the Indian Stamp Act to be legally valid
- Builder’s role: The builder acts as the lessee and executes the sub-lease in favor of the buyer.
- Government approval: The builder must obtain an Occupancy Certificate (OC) before executing the sub-lease.
What Is a Sub Lease Deed?
These regions operate under a leasehold model, where:
- The land is owned by the government.
- Developers lease the land for a fixed term (usually 90 years).
- Buyers receive sub-lease rights, not full ownership.
This model is different from freehold property, where the buyer owns both land and structure outright.
What Does the Sub Lease Deed Contain?
Typical contents include:
- Details of the property (unit number, tower, floor)
- Terms of the sub-lease (duration, rights, restrictions)
- Payment details and possession date
- Maintenance and usage clauses
- Signatures of both parties and witnesses
You can view a sample Sub Lease Deed format here.
Important Notes
- Sub-lease is not the final registry: It proves possession but not full ownership.
- Conversion to freehold: Buyers may apply to convert leasehold to freehold by paying a fee to the authority.
- Multiple owners: Sub-lease deeds can include co-owners or nominees.
Would you like help drafting or reviewing a Sub Lease Deed for your property?