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Leave and License Agreement

When two people create an agreement to allow one for the utilization of other’s immovable property, Leave and License Agreement is made. Here, these two people are regarded as the Licensor and Licensee. With the Leave and License Agreement, a licensor (owner) grants the licensee (tenant) to utilize his/her properly for residential or commercial purposes.

It provides a permission to occupy a certain property.

It makes the eviction easier.

It is revocable by the landlord.

The stamp duty is lower than of rent or lease agreement.

It does not create any heritable rights.

No property right is created in this agreement.

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


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Difference between Rent Agreement & Leave and License Agreement

People often think that Rent Agreement and Leave and License Agreement are the same. Both are very different from each other.

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.

With the Leave and License Agreement, the owner or the licensor enjoys more benefits than the owner in Rent Agreement.

Rent Agreement in India is governed by the Rent Control Act. But, Leave and License Agreement is administered by Indian Easement Act 1882.


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