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WHAT IS leave and license agreement ?

A leave and license agreement is a legal agreement which the licensor interim/periodic grant the licensee to use and hold licensor's static property full or a part of it, for the purpose of holding business activity otherwise residential use.

  • For that activity, the licensee should be paid to the licensor a fixed amount also known as the rent.

  • This agreement basically granted to the licensee for a period of 11 months.

  • Leave and license agreement must be registered of the presence of the sub-registrar at the place of sub register office or the place where the static property is located.

  • It is also known as rent agreement.

  • The agreement should be executed on a stamp paper of appropriate value.


Structure of leave and license agreement

Leave and license agreement basically create between licensor and licensee in the presence of sub register.

  • Licensor/owner –the person /parity who are the owner of the property, he grants to a person or organization for receive amount of money.

  • Licensee/tenant – the person /parties who are grants the power of the property in periodic, it is basically 11 month period.

  • The sub-register – when the leave and license agreement create it must be remember that the agreement create the present of the sub-register at place f judiciary.

When you create leave and license agreement you should register or notary

When you decided to create this type of agreement you go through the register or notary mode but whichis the most preferable lets discuss below
  • Register document

    When go through to the registerdocument it means judiciary or government database kept a copy with a unique number, this is most secure and authentic. Further owner and tenant dispute or argument that time register is strong evidence which terms and condition decided.

  • Notary document

    When go through to the notary it means government database kept a brief/short copy of the total agreement witha unique number. So this agreement not to prescribe the whole teams and condition.


Important document for leave and license agreement

  1. Detailed address of the premises.
  2. Details of the licensor of the premises (Address, name etc.)
  3. Details of the licensee or tenant.
  4. Duration of lease/rent.
  5. Lease/rent amount.
  6. Security deposit amount.
  7. Identity proof and address proof of the licensor.
  8. PAN of the business (In case of Proprietorship concern PAN of the Proprietor is sufficient).
  9. Identity proof and address proof of the representative of the business.
  10. Address proof of the premises.
  11. Passport size photos of the owner and representatives of the business.

Some important clauses of a Lease and license Agreement

All the criteria and details should be mention clearly
  1. Security deposit
  2. Use of rented/leased property
  3. Payment of rent
  4. Agreement period
  5. Termination
  6. Maintenance or Society charges, Government taxes or any other charges
  7. Damages
  8. Renewal of agreement
  9. Dispute resolution

Stampduty and registration frees

  • What Is a Stamp Duty?

    • Stamp duty is one type of tax place on legal document; it is impose of transfer of homes, buildings, copyright, land, and securities and marriage licenses.

    • It is alsoknown as stamp tax.

    • To pay the stamp duty on the sale agreement under section 3 of the Indian Stamp Act, 1899

  • What is Registration fees?

    • The registration fee is a charge that is over and above the stamp duty. This fee varies from state to state. For example, the registration fee in westbengal is imposing at 1% of the value of the transaction.

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