Published on Jun 2, 2025Updated on Jun 3, 2025
Renting out a property or moving into a new home involves more than just exchanging keys; having a proper leave and licence agreement in India is crucial. In major cities, this document acts as an essential legal safeguard for both property owners and tenants. Yet, many people still enter into these arrangements without fully understanding the legal implications, leading to avoidable disputes, financial setbacks, or even eviction issues.
This guide walks you through everything you need to know: the difference between a lease and a licence, the standard leave and licence agreement format, and how to register one online. You’ll also discover key points to review before signing, ensuring you remain informed.
It is a legal contract between a licensor (usually the property owner) and a licensee (the tenant). It allows the licensee to occupy the property for a specific period without giving them tenancy rights or ownership.
This is different from a lease, where the tenant receives greater control and legal rights over the property. In a leave & licence agreement, the licensor retains full authority and can revoke it under the defined terms.
An agreement for leave and licence benefits both parties. It helps you:
|
Aspect |
Leave and Licence Agreement |
Rental Agreement |
|
Legal Nature |
Temporary licence to occupy |
Allows possession of property for a specified duration |
|
Duration |
Typically short-term |
Typically long-term |
|
Termination |
Easier and quicker |
Requires a formal eviction process |
|
Purpose |
Generally for commercial or short-term residential purposes |
Mainly for residential purposes |
|
Control Over Property |
Licensor retains more control |
The tenant has stronger occupancy rights |
*Please note that the exact process, both offline and online, may vary depending on local regulations.
A typical leave and licence agreement format includes:
A Leave and Licence Agreement is essential for protecting both the property owner’s rights and the occupant’s responsibilities. It offers a flexible, transparent, and legally sound alternative to traditional rental agreements – especially in urban Indian contexts where short-term occupancy is common.
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No. A leave and licence agreement grants permission to occupy without transferring property rights, unlike a lease.
No, it is not transferable. The agreement is personal to the licensee and cannot be assigned to another party without the owner's consent.
Leave and licence agreements are typically for 11 months to avoid registration as leases, which come with a different set of legal requirements.
Disadvantages include limited legal protection, easy termination by the owner, and no ownership rights for the tenant.
Agreements are typically for 11 months and can be renewed, though some can extend up to 3 to 5 years, subject to mutual agreement.
Yes, stamp duty applies and varies by state.
The lock-in period is typically 3 to 6 months, during which neither party can terminate the agreement without a penalty.
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