Leave & License Agreement
What is a Leave and License Agreement?Â
A Leave and License Agreement is a legal document that allows a person (called a Licensee) to use and occupy a property for a specific period, without giving them ownership or tenancy rights. This agreement is commonly used when the owner (called a Licensor) wants to let someone stay in their flat, office, or shop temporarily, while keeping full control over the property.Â
Who Needs This?Â
- Homeowners who want to rent out their property for a short periodÂ
- Tenants looking for flexible, short-term accommodationÂ
- Business owners who need temporary commercial space (offices, shops)Â
- NRI property owners who want legal protection while letting out propertyÂ
- Anyone who wants to avoid long-term commitments or tenancy complicationsÂ
Difference Between Leave & License vs Rent/Lease AgreementÂ
Factors | Leave & License Agreement | Rent/Lease Agreement |
Legal Right | Gives only permission to use the property | Transfers tenancy rights to the tenant |
Ownership | Owner keeps full control of the property | Tenant gets legal possession during the agreement period |
Eviction | Owner can easily remove the licensee | Requires proper legal process to evict the tenant |
Duration | Usually for short term (up to 11 months) | Generally, for a longer duration (1 year or more) |
Registration | Mandatory in some states like Maharashtra | Must be registered if the term is over 12 months |
Usage | Best for temporary stays or short-term commercial use | Suitable for long-term residential or commercial purposes |
Governing Law | This is governed by the Easement Act and is not protected by rental laws | Rights of parties are protected under Rent Control Acts |
Benefits of a Leave and License AgreementÂ
- No tenancy rights to the occupant- The owner remains in full control of the property.Â
- Easier and quicker eviction- The licensee can be asked to vacate without lengthy legal steps.Â
- Ideal for short durations- Commonly used for stays up to 11 months.Â
- Clear terms and conditions- Reduce chances of misunderstanding or disputes.Â
- Lower legal risks for the owner- The law favors the licensor in such agreements.Â
- Easily renewable or terminable- Can be extended or ended by mutual agreement.Â
- Best suited for high-demand cities- Works well in places like Mumbai and Pune where short-term rentals are common.Â
- Eliminates the risk of illegal possession â Prevents the occupant from claiming tenancy rights or refusing to vacate.Â
Whatâs Included in Our Draft?Â
- Details of the owner and licensee- Names, addresses, and ID infoÂ
- Description of the property- What part of the property is being given on licenseÂ
- Purpose of use- Whether it's for residential or commercial useÂ
- License period- Start and end date of the agreementÂ
- License fee- Monthly amount to be paid and mode of paymentÂ
- Security deposit- Refundable deposit amount, if anyÂ
- Maintenance and utility charges- Who pays for what (electricity, water, etc.)Â
- Rules and restrictions- What the licensee can or cannot do in the propertyÂ
- Termination clause- How the agreement can be ended earlyÂ
- Signature and witnesses- Signatures of both parties and witnessesÂ
FAQ's Related to Leave & License Agreement
It is usually valid for up to 11 months or more, depending upon the requirement, but can be renewed if needed.
Yes, it can be renewed with the mutual consent of both parties.
Registration is required if it exceeds 12 months. In others, itâs optional for 11-month terms.
A lease gives tenancy rights, while a license only gives permission to use the property without legal possession.
Yes, it is suitable for both residential and commercial purposes.
Yes, the entire process including drafting, e-stamping, and registration can be done online in many states.
Notarization is optional, but registration is preferred for better legal validity.
Basic documents like ID proof, address proof, property documents, and passport-size photos of both parties.
Usually, the draft can be prepared within 24 to 48 hours after receiving details but with DigiLawyer, it can be drafted for you in just 15 minutes.
Yes, e-stamping is available in most states and can be arranged online.
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