Question

A lease of immovable property from year to year, or for any term exceeding one year or reserving a yearly rent, can be made only by a

• A. Oral agreement
• B. Written agreement
• C. Partition
• D. Registered instrument

Hint:

Remember the dividing line for lease registration: \textbf{More than one year = Registration is mandatory}. One year or less = Registration is optional (oral agreement with possession is enough).

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
The question pertains to the legal formalities required for creating a long-term lease of immovable property under the Transfer of Property Act, 1882.
Step 2: Detailed Explanation:
Section 107 of the Transfer of Property Act deals with how leases are made. It provides two distinct rules: 1. A lease of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument. 2. All other leases of immovable property (i.e., for a term of one year or less) may be made either by a registered instrument or by oral agreement accompanied by delivery of possession. The question specifically asks about leases "from year to year, or for any term exceeding one year", which falls squarely under the first rule. Therefore, such a lease must be in writing and registered with the appropriate authority under the Registration Act, 1908. An oral or simple written agreement is not sufficient to create a valid lease for such a duration.
Step 3: Final Answer:
According to Section 107 of the TPA, a lease for a term exceeding one year must be made by a registered instrument. Therefore, option (D) is the correct answer.