Demystifying Leave and License Agreements

Posted On : April 10, 2024
Demystifying Leave and License Agreements
Listen to this article

Table of Contents


In the Indian property management industry, the Leave and License Agreement is an important legal document that creates a legal relationship between the landlord and tenants. This tutorial explains the legal meaning of a leave and license agreement and the necessary steps. In today's busy lifestyle, it is also considered how practical it is to manage this document online.

What is a lease and License agreement?

A lease and license agreement or simply a license agreement is a legally binding agreement. which regulates the temporary transfer of the right to use and own real estate. Under this agreement, the owner of the property, the "licensor", gives permission to the "licensee" to use the area for a certain period of time.

In addition, a lease and a license agreement and a rental contract are not the same thing. Unlike conventional leases, the latter do not create a landlord-tenant relationship or transfer ownership. Instead, it gives limited permission to use the land. This distinction is crucial because it simplifies the eviction process in the event of a dispute.

Benefits of a Vacation and License Agreement

The following are some of the advantages or benefits of this agreement;

  • Both property owners and tenants can enjoy the independence it provides, because it allows for short-term contracts, it is suitable for working professionals, students and anyone looking for temporary housing.
  • By clearly defining living conditions, this contract reduces the potential for disputes. It offers a structured approach to managing things like maintenance obligations, deposits and rent.
  • Evicting is easier with this agreement than with a standard tenancy agreement. In case of disputes or negligence, the licensor can get the property back without lengthy legal battles.
  • An additional layer of protection clarifies the rights of real estate agents and helps protect their property.
  • The process is accelerated and simplified with the creation and management of online contracts.
  • Leave and license agreements offer a practical and legally reliable solution for property transactions in India and features to meet the changing needs of both landlords and tenants.

Maximum duration of leave and license terms

In India, leave and license agreements can last up to 11 months. Generally, regardless of whether the contract is for residential or commercial use, it lasts for 11 months. The lessor and the lessee can decide on the duration of the freehold and license agreement; it must be renewed for 11 months only.

Legal consideration For Leave and License Agreement

  • Read and understand all the terms of the contract, paying particular attention to terms relating to liabilities, rent and security.
  • Before signing, make sure the property is as described in the contract through a thorough inspection.
  • Make sure the contract is properly stamped, paid and registered.
  • Make sure the contract is registered at the local sub-registrar's office to make it enforceable.
  • Learn about the eviction process and the notice period required to cancel the contract.
  • If you are unsure of any terms of the contract or unsure, you should consider getting legal help. Prioritizing these legal issues ensures a safe and open contract for all parties.


In India, the Leave and License Agreement is an important legal document that carefully balances the rights of land owners and land users. It has become an important tool for securing real estate, as it is a well-defined legal framework and easy to register online. A clear understanding of legal definition, format and online procedures will help you navigate the ever-changing landscape of property management in the country. Harness the power of informed decision-making and legal clarity as you begin your adventure in this exciting area of holiday and licensing deals. For more information on this topic, you should consult with an experienced employment lawyer in your city.

Frequently Asked Questions

  1. What is a Leave and License Agreement?
    A legal agreement called a "Leave and License Agreement" gives the licensor the authority to grant to the licensee temporary access to its property. The contract defines the terms and parameters that both parties agree to, and the licensee usually pays rent to the licensor. Either party can terminate a contract with the other with notice, and non-payment of rent or breach of other terms of the contract is a common reason.

  2. What is the difference between a leave and a license and a lease?
    A lease is the transfer of part of the land for a certain period, while a leave and license gives temporary permission to manage the property without transferring ownership.

  3. Why is the leave and license for 11 months?
    If the duration of the lease is more than 12 months, it must be registered under the Registration Act 1908. Therefore, to avoid stamp duty and registration costs, holiday and license agreements are often concluded for 11 months.
Written By:


Recommended Free Legal Advices
question markFraud agent 2 Response(s)
Dear Client, It appears from the long contents of the query that you are trapped by some unidentified touts who giving vague assurance extorted money from you in the name of processing your driving license. So, in the given situation, you need to visit the office of the office of concerned RTO for necessary information in this regard and the steps required for issuing a driving license.
question mark3 months rent pay for leaving the flat - leave n license agreement 2 Response(s)
I have gone through your query in detail. 1) As per your query the 20k per month rent is divided by all 4 people, so are all the names mentioned in the agreement OR the entire agreement stands only in your name 2) As you have stated other people are also staying with you, so are they still there in the flat or they have already vacated the same and 3) what kind of three months excluding advance you have WRITTEN --- could not come to the conclusion please send entire leave n licence copy for more details. If you realize my professional skills, the time & efforts put in by me needs to be truly appreciated, and then Please “CLICK MY LIKES/ THUMBS UP/GIFT” button shown below this reply format & also CLICK/ WRITE a “REVIEW” in 5 star as I have answered your query in detail. Hope this information is useful ADV. ANISH PALKAR (High Court)
question markNo leave license or any written agreement 4 Response(s)
Dear Client You accepting the rent without nay objection will be considered as having a rent agreement which was made orally after the expiry of the first one made with the older owner. So you got to tread your path cautiously to evict the tenant. Get in touch with a good lawyer in your location and move the court for eviction.
question markFraud by room owner 4 Response(s)
Dear Sir, Such cases are many and you have 2 options 1. u may approach Police to lodge complaint for cheating u without disclosing the Bank Loan 2. U may approach High Court saying that u r ready to purchase the house and thus your representation may be referred to the Bank to consider the same to avoid immediate eviction of you from the house.
question markFraud committed by room owner 3 Response(s)
Dear Client. Firstly you have to write a written police complaint to the police station which have jurisdiction over the property and it would be better if you take help of a advocate for drafting a formal complaint. Secondly you can a file a suit in the court within the prescribed time. Hope it helps.