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Assured Return / Lease Guarantee Agreement

At a glance

Price
₹1,499 · GST included
Stamp duty
This Agreement is not a lease, a conveyance, a mortgage or a gift — it is a contract under which the Developer promises to pay money — so it does not fall under any of the named instruments in Schedule I-A to the Indian Stamp Act, 1899 as applicable in Punjab or in Chandigarh.
Registration
NOT ORDINARILY COMPULSORY, for a reason worth stating precisely rather than assuming.
Witnesses
No statute requires an attesting witness on a contract of this kind.

₹1,499

GST included

Launch period: downloads are free for now. The prices shown apply once payments open.

Guided questions, full draft on screen, download in Word.

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Also called

  • Assured Return Agreement
  • Assured Return Scheme Agreement
  • Lease Guarantee Agreement
  • Rental Guarantee Agreement
  • Assured Rental Agreement
  • Assured Monthly Return Agreement
  • Fixed Return Agreement
  • Pre-Leased Assured Return Agreement

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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Why you need it

When you need it

You have bought, or are buying, a commercial unit — an office, a shop, a showroom or an SCO — from a developer who has separately promised to pay you a fixed monthly or annual "assured return" for a stated period, whether or not the unit is actually let out. This is that second, separate agreement: the one that records the guarantee itself, as distinct from the Agreement for Sale or PAPRA/RERA agreement that transfers the unit. Common in commercial pre-launch sales across Mohali IT City, Zirakpur, Ludhiana and Chandigarh's own SCO markets, where a developer sells before a project is leased and uses an assured return to substitute for the rental income a buyer would otherwise wait for. READ THIS FIRST: an assured-return or lease-guarantee promise is not an ordinary commercial term. Depending on how it is structured and, in particular, on whether it is offered on the same terms to many buyers across a project, it is capable of being characterised as a Collective Investment Scheme under section 11AA of the Securities and Exchange Board of India Act, 1992, or as an unauthorised deposit under the Companies Act, 2013 or the Banning of Unregulated Deposit Schemes Act, 2019. This template drafts the commercial bargain honestly and flags that risk prominently rather than glossing over it — see clause 10 and the first item under "what a lawyer should check". Covers: the assured amount or percentage and the period it runs for; the date it starts, tied to possession or a stated outside date, whichever is earlier; what happens if the developer misses a payment; whether the guarantee is backed by a bank guarantee, post-dated cheques or a charge on another asset, or by nothing beyond the developer's own promise; what happens when the guarantee period ends; and the genuinely unsettled question of how the payments should be taxed. NOT FOR: the sale itself — use the PAPRA/RERA Agreement for Sale template for that, of which this is a companion; a residential assured-return scheme (rare, and the regulatory exposure is even sharper); or a case where the "guarantee" is simply the developer itself taking the unit on a straightforward commercial lease — use the Commercial Lease Deed template for that instead, because an actual lease is not the arrangement this template drafts.

See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

This Agreement is not a lease, a conveyance, a mortgage or a gift — it is a contract under which the Developer promises to pay money — so it does not fall under any of the named instruments in Schedule I-A to the Indian Stamp Act, 1899 as applicable in Punjab or in Chandigarh. Like the Agreement for Sale itself, it falls to the residuary Article 5 (Agreement or Memorandum of an Agreement). PUNJAB: the Revenue Department's published table has no dedicated row for this kind of agreement, exactly as for an Agreement for Sale. Ask the Sub-Registrar of the tehsil what Article 5 comes to before buying the stamp paper, and buy the e-stamp on igrpunjab.gov.in dated on or before the day of signing. CHANDIGARH: the same position applies at the Sub-Registrar, U.T. Chandigarh, 30 Bays Building, Sector 17 — confirm the Article 5 figure there before buying paper; e-stamping is arranged through the same office, and revenue.chd.gov.in carries the current process. ONE ORIGINAL is enough for execution; a counterpart or duplicate is separately chargeable under Article 25 of the same Schedule in both jurisdictions. IF THE SECURITY CHOSEN IS A MORTGAGE OR CHARGE ON ANOTHER ASSET (clause 6), that mortgage or charge is a SEPARATE instrument from this Agreement, attracts its own duty under the mortgage articles of Schedule I-A, and is dealt with in the registration note below — do not assume this Agreement's stamp paper covers it. Under-stamping leaves this Agreement inadmissible in evidence except on payment of the deficiency and a penalty of up to ten times the deficiency under s.35 of the Indian Stamp Act, 1899, and impounded until that is paid.

Registration

NOT ORDINARILY COMPULSORY, for a reason worth stating precisely rather than assuming. Section 17(1)(b) of the Registration Act, 1908 compels registration of a non-testamentary instrument that creates, declares, assigns, limits or extinguishes a right, title or interest in immovable property. A plain promise to pay money — even money calculated by reference to a specific unit's value, and even called a "lease guarantee" — is a personal, contractual right to be paid, not an interest IN the Unit itself, so this Agreement on its own does not fall within s.17(1)(b) and is not compulsorily registrable merely because it exists. THAT CHANGES if the security chosen under clause 6 is a mortgage or charge over another specific immovable property of the Developer. A mortgage securing repayment of money, other than by deposit of title deeds, is itself an instrument s.17(1)(b) and s.17(1)(c) of the Registration Act, 1908 compel to be registered, wherever the mortgaged property is worth Rs 100 or more — which in practice means always. That mortgage document, when it exists, is a separate instrument from this Agreement and must independently be registered at the Sub-Registrar for the tehsil in which the mortgaged property lies (Punjab, via igrpunjab.gov.in) or at the Sub-Registrar, U.T. Chandigarh, 30 Bays Building (for Chandigarh property), within four months of execution under s.23, with a further four months available on a fine under s.25. VOLUNTARY REGISTRATION of this Agreement itself, even where clause 17(1)(b) does not compel it, is available under s.18 of the Registration Act, 1908 and is worth considering given the value and duration of the payment obligation — it fixes the date of execution beyond dispute and gives the document public notice. Clause 8 of this Agreement records whether the parties have instead chosen to fold its terms into the registered Agreement for Sale, in which case this separate registration question does not arise because the promise is already part of a document being registered for other reasons. An unregistered instrument that did not need registration is not rendered inadmissible by s.49 of the Registration Act, 1908 — that section only disables a document that ought to have been, and was not, registered.

Notarisation

Not compulsory, and not a substitute for registration where clause 6 uses a mortgage as security — nothing in s.17 or s.49 of the Registration Act, 1908 is satisfied by notarisation. Because this Agreement typically does not need to be registered at all (see above), notarisation is the practical way to fix the date and the fact of execution beyond later dispute, and is worth doing even though the law does not compel it — particularly where the parties have chosen, under clause 8, to keep this Agreement separate from the registered Agreement for Sale rather than annexed to it. Where the security is a bank guarantee, the guarantee instrument itself is issued and stamped by the bank under its own process and is not notarised as part of this Agreement.

Witnesses

No statute requires an attesting witness on a contract of this kind. Two are asked for here because, if this Agreement is later produced before a court, a regulator or an arbitrator — and a document promising money over a period of years is more likely than most to be produced somewhere — a witness who can be traced and can identify the signatures is worth having contemporaneously, not reconstructed later from memory. Choose two adults who are not employees of the Developer and are not related to either party. If this Agreement is voluntarily registered under s.18 of the Registration Act, 1908, both witnesses should also be prepared to attend the registering office with the executants.

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ASSURED RETURN AND LEASE GUARANTEE AGREEMENT

This Assured Return and Lease Guarantee Agreement (this "Agreement") is made at S.A.S. Nagar (Mohali), Punjab on 1 April 2026.

BETWEEN

Northfield Commercial Projects Private Limited, an individual, of SCO 84-85, Second Floor, Sector 82, S.A.S. Nagar (Mohali), Punjab 160055, PAN AABCN4521F, acting through Karanvir Singh Bedi, Director, authorised by board resolution dated 2 March 2026 (the "Developer", which expression includes its successors in interest and permitted assigns);

AND

Simran Kaur Dhillon, D/o Shri Ranjit Singh Dhillon, an individual, of House No. 612, Sector 69, S.A.S. Nagar (Mohali), Punjab 160062, PAN BRTPD6621N, acting through X, X (the "Buyer", which expression includes his, her or its heirs, legal representatives, successors in interest and permitted assigns).

The Developer and the Buyer are each a "Party" and together the "Parties".

RECITALS

A. The Buyer has purchased, or agreed to purchase, the Unit described in Schedule I from the Developer under an Agreement for Sale, particulars of which are: Agreement for Sale dated 4 February 2026 between Northfield Commercial Projects Private Limited and Simran Kaur Dhillon for Unit SCO-14, Northfield Business Walk, registered under Punjab RERA as PBRERA-SAS81-PR0811. That Agreement for Sale, and not this one, is the instrument that transfers the Unit; this Agreement adds a separate guarantee of return and does not vary the price, the description or the possession terms of the Unit under it, except as this Agreement expressly states.

B. As an inducement to the Buyer and as part of the commercial terms on which the Unit has been sold, the Developer has agreed to pay the Buyer a guaranteed return for a stated period, calculated as set out below, whether or not the Unit is in fact let out or occupied during that period.

C. The Parties record that a developer's promise of an assured or guaranteed return on a real estate purchase, whatever it is called, carries a regulatory characterisation risk going beyond an ordinary commercial term. Depending on how it is structured and marketed, and in particular on whether it is offered on materially the same terms to other buyers in the Project, such an arrangement is capable of being treated as a Collective Investment Scheme within the meaning of section 11AA of the Securities and Exchange Board of India Act, 1992, or as a deposit within the meaning of the Companies Act, 2013 or the Banning of Unregulated Deposit Schemes Act, 2019. The Parties have entered into this Agreement on the understanding that it is a bilateral arrangement tied to the specific Unit the Buyer has purchased and not, so far as the Parties are aware, part of a pooled scheme; nothing in this Recital or in this Agreement is a representation by either Party as to how a regulator or a court would in fact characterise it, and clause 10 and "what a lawyer should check" record why that question calls for independent advice this Agreement does not give.

D. The Parties intend this Agreement to be read together with, and as collateral to, the Agreement for Sale referred to in Recital A, on the footing recorded in clause 8.

NOW THIS AGREEMENT WITNESSES as follows.

  1. DEFINITIONS

1.1 "Guaranteed Return" means the sum calculated under clause 3 of this Agreement, as escalated under clause 3.4 where applicable.

1.2 "Guarantee Period" means the period described in clause 4.

1.3 "Persistent Default" has the meaning given in clause 7.2.

1.4 References to a statute are to that statute as amended or re-enacted. Headings do not affect interpretation. The singular includes the plural.

1.5 Authority to sign for the Developer: Resolution of the Board of Directors passed on 2 March 2026, a certified copy of which is annexed, authorising Karanvir Singh Bedi, Director, to execute this Agreement and any security document under it.

  1. THE UNIT AND THE AGREEMENT FOR SALE

2.1 The unit to which this Agreement relates is described in Schedule I (the "Unit"), being an office unit forming part of Northfield Business Walk at S.A.S. Nagar (Mohali), in the State of Punjab.

2.2 The Total Sale Consideration for the Unit under the Agreement for Sale referred to in Recital A is ₹84,00,000 (Rupees Eighty Four Lakh only).

2.3 This Agreement does not affect the Buyer's rights under the Agreement for Sale, including any right to compensation or interest for delay in possession, and clause 8 states how the two documents relate to each other.

  1. THE GUARANTEED RETURN

3.1 The Guaranteed Return is a fixed monthly sum, as stated in clause 3.2 below.

3.2 Fixed sum: The Guaranteed Return is ₹58,000 (Rupees Fifty Eight Thousand only) for each month of the Guarantee Period, before any tax required to be deducted at source.

3.4 Escalation: The Guaranteed Return remains fixed for the whole Guarantee Period, with no escalation.

  1. THE GUARANTEE PERIOD

4.1 The Guarantee Period begins on the earlier of (a) the date the Developer offers possession of the Unit to the Buyer under the Agreement for Sale, and (b) 2 April 2026, and continues for 36 months from that date, subject to clause 9 (End of the Guarantee Period).

Questions about this document

Does the Assured Return / Lease Guarantee Agreement need stamp paper or stamp duty in Punjab and Chandigarh?

This Agreement is not a lease, a conveyance, a mortgage or a gift — it is a contract under which the Developer promises to pay money — so it does not fall under any of the named instruments in Schedule I-A to the Indian Stamp Act, 1899 as applicable in Punjab or in Chandigarh. Like the Agreement for Sale itself, it falls to the residuary Article 5 (Agreement or Memorandum of an Agreement).

PUNJAB: the Revenue Department's published table has no dedicated row for this kind of agreement, exactly as for an Agreement for Sale. Ask the Sub-Registrar of the tehsil what Article 5 comes to before buying the stamp paper, and buy the e-stamp on igrpunjab.gov.in dated on or before the day of signing.

CHANDIGARH: the same position applies at the Sub-Registrar, U.T. Chandigarh, 30 Bays Building, Sector 17 — confirm the Article 5 figure there before buying paper; e-stamping is arranged through the same office, and revenue.chd.gov.in carries the current process.

ONE ORIGINAL is enough for execution; a counterpart or duplicate is separately chargeable under Article 25 of the same Schedule in both jurisdictions.

IF THE SECURITY CHOSEN IS A MORTGAGE OR CHARGE ON ANOTHER ASSET (clause 6), that mortgage or charge is a SEPARATE instrument from this Agreement, attracts its own duty under the mortgage articles of Schedule I-A, and is dealt with in the registration note below — do not assume this Agreement's stamp paper covers it.

Under-stamping leaves this Agreement inadmissible in evidence except on payment of the deficiency and a penalty of up to ten times the deficiency under s.35 of the Indian Stamp Act, 1899, and impounded until that is paid.

Does the Assured Return / Lease Guarantee Agreement need registration in Punjab and Chandigarh?

NOT ORDINARILY COMPULSORY, for a reason worth stating precisely rather than assuming. Section 17(1)(b) of the Registration Act, 1908 compels registration of a non-testamentary instrument that creates, declares, assigns, limits or extinguishes a right, title or interest in immovable property. A plain promise to pay money — even money calculated by reference to a specific unit's value, and even called a "lease guarantee" — is a personal, contractual right to be paid, not an interest IN the Unit itself, so this Agreement on its own does not fall within s.17(1)(b) and is not compulsorily registrable merely because it exists.

THAT CHANGES if the security chosen under clause 6 is a mortgage or charge over another specific immovable property of the Developer. A mortgage securing repayment of money, other than by deposit of title deeds, is itself an instrument s.17(1)(b) and s.17(1)(c) of the Registration Act, 1908 compel to be registered, wherever the mortgaged property is worth Rs 100 or more — which in practice means always. That mortgage document, when it exists, is a separate instrument from this Agreement and must independently be registered at the Sub-Registrar for the tehsil in which the mortgaged property lies (Punjab, via igrpunjab.gov.in) or at the Sub-Registrar, U.T. Chandigarh, 30 Bays Building (for Chandigarh property), within four months of execution under s.23, with a further four months available on a fine under s.25.

VOLUNTARY REGISTRATION of this Agreement itself, even where clause 17(1)(b) does not compel it, is available under s.18 of the Registration Act, 1908 and is worth considering given the value and duration of the payment obligation — it fixes the date of execution beyond dispute and gives the document public notice. Clause 8 of this Agreement records whether the parties have instead chosen to fold its terms into the registered Agreement for Sale, in which case this separate registration question does not arise because the promise is already part of a document being registered for other reasons.

An unregistered instrument that did not need registration is not rendered inadmissible by s.49 of the Registration Act, 1908 — that section only disables a document that ought to have been, and was not, registered.

What does the Assured Return / Lease Guarantee Agreement cost on Kaagazaat?

₹1,499, GST included.

Launch period: downloads are free for now. The prices shown apply once payments open.

Does the Assured Return / Lease Guarantee Agreement need witnesses?

No statute requires an attesting witness on a contract of this kind. Two are asked for here because, if this Agreement is later produced before a court, a regulator or an arbitrator — and a document promising money over a period of years is more likely than most to be produced somewhere — a witness who can be traced and can identify the signatures is worth having contemporaneously, not reconstructed later from memory.

Choose two adults who are not employees of the Developer and are not related to either party. If this Agreement is voluntarily registered under s.18 of the Registration Act, 1908, both witnesses should also be prepared to attend the registering office with the executants.

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