Leave and License Agreement: Meaning, Format, Download PDF

As housing demands evolve, so do the agreements that govern property rentals. The Leave and License Agreement stands out as a practical option for those requiring temporary accommodation without the long-term commitments of standard leases. Exploring this agreement can offer valuable insights into more flexible rental arrangements.

What is a Leave and License Agreement?

A Leave and License Agreement is a legal contract in which a property owner (the licensor) allows another party (the licensee) to use their property for a specified period, without transferring ownership. 

Unlike lease agreements, which confer a property interest to the tenant, a leave and license agreement does not create any ownership or interest in the property. This is particularly common in the residential rental market, while commercial leases are typically used for longer-term arrangements.

Also Read: Buying a house versus renting. Which is better for you?

Documents Required to Register a Leave and License Agreement

• Identity Proof: Aadhar Card/ Passport Copy/Voter ID
• Address Proof: Utility Bills/ Aadhar Card
• Property Ownership Proof: Title Deed/ Sale Deed
• Photographs: Recent Passport-Sized Photos of Both Parties
• Stamp Duty: Receipt of Paid Stamp Duty
• Notarisation: Notarised Signatures of Both Parties (if required by state laws)

Also Read: Check the list of documents that you need to apply for home loans.

How to Register a Leave and License Agreement Online?

Step	Action
1. Visit Official Website	Access the official portal of the concerned authority for online registration.
2. Create an Account	Register on the portal to begin the registration process.
3. Fill Out Agreement Form	Complete the online form with all relevant details and terms of the agreement.
4. Upload Supporting Documents	Scan and upload required documents, such as identification and address verification.
5. Pay Stamp Duty	Pay the stamp duty online using secure payment options provided on the portal.
6. Verification and Approval	Wait for the documents to be verified and for the registration to be approved.
7. Receive Digital Copy	Once approved, download the digital copy of the registered agreement and the acknowledgment receipt.

How to Register a Leave and License Agreement Offline?

Step	Action
1. Draft Agreement	Create a clear agreement with mutually agreed terms and conditions.
2. Visit Sub-Registrar Office	Go to the nearest Sub-Registrar Office to initiate the registration process.
3. Pay Stamp Duty	Pay the required stamp duty based on the agreement’s value.
4. Submit Agreement	Submit the signed agreement along with necessary supporting documents.
5. Provide ID & Address Proof	Include identification (Aadhar, passport) and address proof documents.
6. Sign in Presence of Sub-Registrar	Both parties sign the agreement before the Sub-Registrar for validation.
7. Receive Registered Agreement	Obtain a copy of the registered agreement and acknowledgment from the Sub-Registrar.

Sample Leave and License Agreement PDF

https://efilingigr.maharashtra.gov.in/ereg/downloadstuff/LAndL.pdf

Things to Note Before Signing a Leave and License Agreement

• Understand all clauses, including rent, security deposit, and responsibilities.
• Verify that the property matches the description in the agreement through a detailed inspection.
• Be aware of the required notice period for termination and the eviction procedures.
• Ensure the correct stamp duty has been paid and is documented in the agreement.
• Officially register the agreement at the local Sub-Registrar’s Office to ensure its legal validity.
• Confirm that witnesses are present and have signed the agreement.
• Consult a lawyer if you have any questions or concerns about the agreement’s terms.

Benefits of Leave and Licence Agreement

• Easier Eviction: Landlords can evict tenants more easily without lengthy legal battles.
• No Property Rights Transferred: Tenants do not acquire any property rights, ensuring no claims beyond the agreement terms.
• Exemption from Rent Control Laws: Falls under the Indian Contract Act, avoiding Rent Control Act restrictions that favor tenants.
• Shorter Tenure: Typically for shorter periods (like 11 months), giving owners greater control over the property.

Difference Between Lease and Leave and Licence Agreement

Aspect	Lease Agreement	Leave and Licence Agreement
Possession Rights	Grants the tenant exclusive possession of the property, creating a property right.	Provides permission to occupy the property without transferring any possession or ownership rights.
Transferability	Tenants can transfer or inherit the leasehold interest.	Licensee cannot transfer or inherit any interest in the property.
Interest in Property	Transfers a leasehold interest to the tenant.	Does not transfer any interest in the property to the licensee.
Tenure Period	Can be fixed (e.g., 1 year, 5 years) or in perpetuity.	Typically short-term, usually up to 11 months.
Stamp Duty	Requires higher stamp duty based on the lease agreement value.	Generally involves lower stamp duty compared to lease agreements.
Registration Requirement	Mandatory registration for agreements exceeding one year.	Does not require registration unless the agreement exceeds 11 months.
Legal Protection	Provides stronger legal protection to the tenant under rent control laws.	Offers limited legal protection as it falls under the Indian Contract Act, avoiding rent control restrictions.
Termination Process	More stringent termination conditions, often requiring substantial notice or cause.	Easier to terminate with minimal notice as per the agreement terms.
Renewal Terms	May include provisions for automatic renewal or renegotiation at the end of the lease term.	Typically does not include automatic renewal, emphasizing its temporary nature.
Usage Flexibility	Limited flexibility due to longer commitment periods and binding terms.	Greater flexibility for both parties, allowing for short-term occupancy and easier modifications to terms.

Conclusion

A Leave and Licence Agreement offers a flexible and straightforward approach to property occupancy, benefiting both licensors and licensees in various scenarios. However, it’s essential to weigh the advantages against the potential drawbacks and ensure that the agreement is legally sound. By understanding the key features and differences from traditional lease agreements, you can make informed decisions that best suit your housing needs and property management goals.

Frequently Asked Questions