|
|
|
|
|
|
|
|
|
9521216548|7689862351
info@onepointindia.in
ISO Logo
License Agreement

Leave and License Agreement

Professional Leave and License agreement drafting with lower stamp duty and easier eviction. Flexible terms for property licensing.

₹1,999₹3,99950% OFF
  • Lower Stamp Duty
  • Easier Eviction Process
  • No Property Rights Created
  • Revocable by Landlord
  • Expert Legal Drafting
  • Digital & Physical Copies

Get Started Today!

Fill the form to receive instant callback

7 KEY CHARACTERISTICS OF
LEAVE AND LICENSE AGREEMENT

✅

Permission to Occupy

Provides permission to occupy a certain property for specified period

🚪

Easier Eviction

Makes the eviction easier compared to rent agreements

🔄

Revocable by Landlord

It is revocable by the landlord as per agreement terms

💰

Lower Stamp Duty

The stamp duty is lower than rent or lease agreement

🚫

No Heritable Rights

It does not create any heritable rights to licensee

🏠

No Property Rights

No property right is created in this agreement

📝

Not Transferable

It is not transferable and easy termination is possible

What is Leave and License Agreement?

A Leave and License Agreement is a legal document between a Licensor (owner) and a Licensee (tenant) for the utilization of property. Unlike rent agreements, this agreement grants only a license to use the property, not a tenancy right. It is governed by the Indian Easement Act, 1882, rather than the Rent Control Act.

This type of agreement is preferred by landlords because it provides more control and flexibility. The licensee (tenant) gets permission to occupy the property for a specified period, but does not acquire any property rights or tenancy rights. This makes eviction easier and provides better protection to the property owner.

Leave and License agreements are commonly used for residential and commercial properties, especially in metropolitan cities where property owners want to maintain more control over their properties and avoid complications of tenancy laws.

Lower
Stamp Duty
Easier
Eviction
No Rights
Property Rights

Leave and License Agreement

A Leave and License Agreement is a legal document between a Licensor (owner) and a Licensee (tenant) for the utilization of property. This agreement provides permission to use the property without creating tenancy rights.

✅

Permission to Occupy

It provides a permission to occupy a certain property for the specified period without creating tenancy rights

🚪

Easier Eviction

It makes the eviction easier as licensee has no tenancy rights or property claims

🔄

Revocable by Landlord

It is revocable by the landlord as per the terms and conditions specified in the agreement

💰

Lower Stamp Duty

The stamp duty is lower than rent or lease agreement, making it more cost-effective

🚫

No Heritable Rights

It does not create any heritable rights - rights cannot be passed to successors or heirs

🏠

No Property Rights

No property right is created in this agreement - licensee has only license to use, not ownership

📝

Not Transferable

It is not transferable and easy termination is possible regarding this agreement

Difference between Rent Agreement & Leave and License Agreement

People often confuse Rent Agreement and Leave and License Agreement, but they are different legal documents with distinct characteristics and implications.

✓

Tenancy Rights and Property Claims

As per the Rent Control Act of India, rent agreement allows a tenant to claim the property after staying 10+ years. But, Leave and License Agreement never allows the licensee to claim the property, regardless of the duration of stay.

✓

Benefits to Owner/Licensor

With the Leave and License Agreement, the owner or the licensor enjoys more benefits than the owner in Rent Agreement. The licensor has better control, easier eviction, and no risk of tenancy rights being created.

✓

Governing Laws

Rent Agreement in India is governed by the Rent Control Act, which provides protection to tenants. But, Leave and License Agreement is administered by Indian Easement Act 1882, which treats it as a license, not tenancy.

AspectRent AgreementLeave & License Agreement
Governing LawRent Control ActIndian Easement Act, 1882
Property RightsCreates property rightsNo property rights created
Tenancy RightsCreates tenancy rightsNo tenancy rights
EvictionDifficult, requires legal processEasier, as per agreement terms
Stamp DutyHigher stamp dutyLower stamp duty
TransferabilityTransferable to heirs/successorsNot transferable
RevocabilityNot easily revocableRevocable by licensor
Property ClaimCan claim after 10+ yearsCannot claim property

Our Leave and License Agreement Services

1

Professional Drafting

Expert legal drafting with all essential clauses and terms

2

Lower Stamp Duty

Benefit from lower stamp duty compared to rent agreements

3

Easier Eviction Terms

Clear terms for easy eviction without tenancy complications

4

Legal Compliance

Compliance with Indian Easement Act, 1882

5

Customization

Customized agreements based on your specific requirements

6

Review & Revision

Legal review and revision until you're satisfied

7

Registration Support

Assistance with agreement registration if required

8

Digital & Physical Copies

Both digital and physical copies provided for your records

9

Witness Arrangement

Help in arranging witnesses for agreement execution

10

Post-Execution Support

Support after agreement execution for any queries

Documents Required

1Licensor (Owner) Documents

  • ✓ Identity Proof (PAN, Aadhaar, Passport)
  • ✓ Address Proof (Utility Bill, Bank Statement)
  • ✓ Property Ownership Documents
  • ✓ Property Tax Receipt
  • ✓ NOC from Society/Association (if applicable)

2Licensee (Tenant) Documents

  • ✓ Identity Proof (PAN, Aadhaar, Passport)
  • ✓ Address Proof (Utility Bill, Bank Statement)
  • ✓ Employment Proof (if applicable)
  • ✓ Previous License Receipts (if any)
  • ✓ Reference Letters (optional)

3Property Documents

  • ✓ Property Deed or Sale Agreement
  • ✓ Property Tax Receipt
  • ✓ Building Plan Approval (if applicable)
  • ✓ Occupancy Certificate (if applicable)
  • ✓ Photos of Property

4Additional Documents

  • ✓ Previous Agreement (if renewal)
  • ✓ Society/Association NOC
  • ✓ Electricity/Water Bill
  • ✓ Property Valuation Report (if needed)
  • ✓ Witness Details (Name, Address, ID Proof)

Important Note:

For 11-month agreements, registration is not mandatory. For agreements exceeding 12 months, registration with the sub-registrar office is required along with stamp duty payment. Leave and License agreements typically have lower stamp duty than rent agreements.

Leave and License Agreement Drafting Process

Get your professional license agreement in simple steps

1

Consultation

Discuss Requirements

2

Document

Collect Documents

3

Draft

Draft Agreement

4

Review

Review & Revise

5

Finalize

Final Approval

6

Execute

Sign Agreement

7

Deliver

Provide Copies

3-5 Working Days
Average Time to Complete

Frequently Asked Questions

Q1.What is the difference between Rent Agreement and Leave and License Agreement?
Key differences: (1) Governing Law: Rent Agreement is governed by Rent Control Act, Leave & License by Indian Easement Act 1882, (2) Property Rights: Rent creates property/tenancy rights, License does not, (3) Eviction: Easier in License agreement, difficult in Rent agreement, (4) Stamp Duty: Lower in License, higher in Rent, (5) Transferability: Rent is transferable, License is not, (6) Revocability: License is revocable by licensor, Rent is not easily revocable, (7) Property Claim: Tenant can claim property after 10+ years in Rent, Licensee cannot claim in License. License agreements give more control to property owners.
Q2.Why is Leave and License Agreement preferred by landlords?
Landlords prefer Leave and License because: (1) Easier eviction - no tenancy rights created, (2) Lower stamp duty - saves costs, (3) More control - can revoke license as per terms, (4) No property claims - licensee cannot claim property even after long stay, (5) No heritable rights - rights don't pass to heirs, (6) Flexible terms - easier to modify or terminate, (7) Governed by Easement Act - not Rent Control Act which favors tenants, (8) Better protection - property owner has more rights and control. This makes it ideal for property owners who want flexibility and control.
Q3.Can a licensee claim the property after staying for many years?
No, a licensee cannot claim the property regardless of how long they stay. Unlike rent agreements where tenants can claim property rights after 10+ years under Rent Control Act, Leave and License agreements do not create any property rights or tenancy rights. The licensee only has a license to use the property, which can be revoked as per agreement terms. This is one of the key advantages of Leave and License agreements for property owners.
Q4.What is the stamp duty for Leave and License Agreement?
Stamp duty for Leave and License is typically lower than rent agreements: (1) Usually 0.1% to 0.5% of annual license fee + security deposit, (2) Some states have fixed rates (e.g., ₹500-1000), (3) Commercial properties may have slightly higher rates, (4) Varies by state - check state-specific rates, (5) Can be paid through e-stamping or physical stamps. Example: If annual license fee is ₹2,40,000 and security deposit is ₹50,000, stamp duty at 0.25% would be ₹725. This is significantly lower than rent agreement stamp duty which is usually 0.5% to 2%.
Q5.Is registration mandatory for Leave and License Agreement?
Registration depends on duration: (1) 11 months or less: Registration NOT mandatory, but recommended for legal protection, (2) 12 months or more: Registration MANDATORY under Registration Act, 1908. Even for 11-month agreements, registration provides better legal protection and enforceability. Unregistered agreements above 12 months are not admissible as evidence in court. Most Leave and License agreements are made for 11 months to avoid registration, similar to rent agreements.
Q6.Can Leave and License Agreement be terminated easily?
Yes, Leave and License agreements can be terminated more easily than rent agreements: (1) As per notice period specified in agreement (usually 15-30 days), (2) By mutual consent of both parties, (3) For breach of terms by licensee, (4) By licensor as per agreement terms, (5) No need for court order in most cases (unlike rent agreements). The ease of termination is one of the main advantages. However, proper notice must be given as per agreement terms. Termination notice should be in writing.
Q7.What happens if licensee doesn't vacate after agreement expiry?
If licensee doesn't vacate: (1) Licensor can send legal notice for eviction, (2) Can file eviction suit in court if notice is ignored, (3) Court process is usually faster than rent agreement eviction, (4) Licensee cannot claim tenancy rights even if they stay beyond agreement period, (5) Licensor can claim damages for unauthorized occupation, (6) Police assistance can be sought in some cases. Since no tenancy rights are created, eviction is generally easier and faster than in rent agreements. However, proper legal procedure must be followed.
Q8.Can licensee sublet or transfer the license?
No, licensee cannot sublet or transfer the license: (1) License is personal to the licensee, (2) Cannot be transferred to another person without licensor's written consent, (3) Cannot sublet the property, (4) Any unauthorized transfer/subletting is breach of agreement, (5) Can lead to immediate termination of agreement. If licensee wants to transfer, they must get written permission from licensor and execute a new agreement or addendum. This restriction protects the property owner's interests.
Q9.Who pays for maintenance and repairs in Leave and License Agreement?
Responsibility depends on agreement terms: (1) Usually specified clearly in the agreement, (2) Minor repairs: Often licensee's responsibility, (3) Major/structural repairs: Usually licensor's responsibility, (4) Common areas: Licensor's responsibility in apartments, (5) Normal wear and tear: Usually acceptable, (6) Damage beyond normal wear: Licensee's responsibility. Best practice: Include detailed maintenance clause specifying who pays for what. Security deposit is often used to cover repair costs if licensee doesn't maintain property properly.
Q10.What is the difference in stamp duty between Rent and Leave & License?
Stamp duty difference: (1) Rent Agreement: Usually 0.5% to 2% of annual rent + security deposit, (2) Leave & License: Usually 0.1% to 0.5% of annual license fee + security deposit, (3) License agreement stamp duty is typically 50-80% lower than rent agreement, (4) Example: For ₹2,40,000 annual amount: Rent agreement stamp duty ≈ ₹1,200-4,800, License agreement stamp duty ≈ ₹240-1,200, (5) This significant cost difference makes Leave & License more attractive. The lower stamp duty is one of the key benefits of Leave and License agreements.

Get Your Professional Leave and License Agreement Today

Protect your property with a flexible license agreement that gives you more control

Register NowCall Now
800+
Agreements Drafted
100%
Legal Compliance
3-5 Days
Quick Delivery