Under Section 105 of the Transfer of Property Act, 1882, a "lease" of immovable property is defined as:

Section 105 of TPA, 1882 defines a lease as a transfer of a right to enjoy immovable property for a certain time (express or implied) or in perpetuity, in consideration of a price paid or promised, or of money, share of crops, service or any other thing of value to be rendered periodically or on specified occasions to the transferor by the transferee. The transferor is the "lessor," the transferee the "lessee," the price is the "premium," and the periodic payment is the "rent." A lease is fundamentally distinguished from a license under the Indian Easements Act, 1882 a lease creates an interest in the property (right to enjoy) whereas a license creates only a personal privilege without any interest in property. This distinction is frequently tested in banking and financial law officer examinations.