Meaning of Leave & License agreement:
Leave & licence agreement refers to an agreement between the licensor (owner) who allows licensee (tenant) to use & occupy his property for a certain amount, for a certain period of time. Leave & license is usually granted for a period of 11 months. Such terms and conditions are mentioned in the clauses of leave & license agreement between the parties.
    A leave & license agreement are different from a rental or lease agreement. It is governed by the Indian Easement Act 1882, in this case of leave & license, the owner leaves the certain place according to various facilities and gives the same to the licensee for use while the owner is on a leave for a specific period of time. This agreement is temporary  & it mainly extends 11 months, & during the agreement period, the licensee should not make any major alteration in the property without the permission of the license. Use of premises for other activities than what was originally mentioned in the agreement is immoral.

•    leave & license agreement contained with:
The personal details of the parties must be mentioned in this leave & license agreement  such as full name, residential addresses and ages of the parties to the agreement:
o    Title of the licensor- The authority of the licensor to enter into the agreement must be shown. The licensor may enter into the Agreement as an owner or as a person properly authorized by the owner.
o    Title of the licensee- Where the licensee has agreed on behalf of a firm or a company, the source of authority of the licensee (board resolution, etc.) to enter into the contract should be stated in the agreement.
o    Definition of the premises- The agreement should identify the premises being let out and should demarcate the actual portion of the premises that is being given on leave & license basis. 
o    Term of the license- The agreement must be clear about the duration of the license. After completion of the term of the license, the relationship between the licensor and the licensee comes to an end. Generally, a provision for renewal of the term on completion of the initial period by mutual consent of the parties is included for convenience.
o    Use of the premises- The licensor may wish to restrict the manner of use of the premises. Accordingly, the agreement can specify whether the premises are to be used for residential or commercial purposes exclusively.
o    Details regarding the amount of rent- The amount of rent payable, the date and mode of payment and interest in case of delayed payment should be clearly stated. Rent is generally agreed to be payable in advance on a monthly or quarterly basis.
o    Security Deposit- the licensee is required to maintain an interest-free security deposit with the licensor. This deposit protects the licensor’s interest in case of non-payment of rent by the licensee. In some cases, the licensee may also be required to deposit rent for a few months in advance. The amount and terms of use and refund of such deposit and advance should be clearly stated in the agreement.
o    Increase in rent- For license periods of over 1 year, the licensor may require that the rent will increase for each of the subsequent years. This increase is usually stated as a percentage of the rent paid in the previous year.
o    Other costs and charges- The agreement must specify who among the licensor and the licensee is to bear the cost of utilities such as electricity, water and maintenance. Generally, these costs are borne by the licensee.
o    Common facilities- If the premises has certain common facilities attached with it, such as the use of the common passage, roof, park, swimming pool, car parking, library, club, gymnasium etc., the agreement should specify whether the licensee is entitled to these facilities and the additional charges payable, if any, by the licensee for such facilities.
o    Furniture and fixtures- Many times, premises are rented along with furniture and miscellaneous electrical appliances. It is advisable to record a complete list of all furniture and appliances that are agreed to be licensed along with the premises. The provisions for replacement or costs for damage to such accessories can be provided for in the agreement.
o    Right to sub-license- Unless the agreement specifies, the licensee does not have a right to sub-license the premises to a third-party.
o    Termination of the license agreement- It is necessary to decide the events at which the license agreement can be terminated. This provision acts as a guideline for the licensee and also ensures the security of the licensor.
o    Date & signature of the agreement

•    Leave & license agreement format:
                                                                               Leave and License Agreement

This agreement made at Mumbai this ___th Day of ____________, 2018.

BETWEEN
Mr [____] (aged __) and (Second owner if any) Mrs [_______] (aged __), both residing at  [______________________________] hereinafter called “the Licensor” (which expression shall wherever the context so requires and admits mean and include the Licensor’s successors) of the One Part
AND
[         Name and Address        ] hereinafter called “the Licensee” (which expression shall wherever the context so requires and admits mean and include its successors) of the Other Part.
WHEREAS 
The Licensors represented and declared to the Licensee that they are absolutely seized and possessed of ALL THAT or otherwise well and sufficiently entitled to hold, use and occupy the residential Flat No. __, on the __th floor of the building known as “_________”, and measuring about [___ ]sq. ft. super area, along with _______ designated car parking spaces, on land bearing C.S. No. _________ of [ CS division/village], Mumbai - 400 0__; (more particularly described in the schedule hereunder written), TOGETHER with all the fixtures, furniture and fittings therein provided as mentioned in Annexure 1 attached under together with exclusive right to use and enjoy all the amenities and facilities attached thereto as also right in common to use and enjoy all the common facilities, privileges incidental attached to and/or the said Flat as also above-mentioned car parking space (hereinafter collectively referred to as “the said premises”).

AND WHEREAS the Licensors have agreed to give to the Licensee on Leave and License basis the said premises for exclusive use by [   Employee name ] and his respective family members and guests as Residence.

A.    The Licensor has represented and warranted that the Licensor has duly paid to the Builders/ Building / Management of the Complex all charges and outgoings due and payable by the Licensor up to date of this Agreement in respect of Licensed Premises.  The Licensor has represented that the Licensor is the lawful owner of the licensed premises having a marketable and saleable right, title and interest.  The Licensor further represented that the stay of the licensee in the licensed premises shall be hassle-free and shall not be disturbed under any circumstances owing to any action of the Licensor.  The Licensor has observed and performed all the rules and regulations and bye-laws of the society for the time being enforced in so far and to the extent applicable to the licensed premises or any part thereof.

B.    The Licensor hereby states that the Licensor has not sold, assigned, gifted or set up a trust in or mortgaged, nor created any third party interest till date.  Provided however that the Licensor shall always be entitled to create a mortgage and/or hypothecate that the licensed premises to any Bank or financial institution or the third party without handing over possession of the licensed premises during the continuance of the licensee in terms of this Agreement.  Any mortgaged or charge to be created by the Licensor shall be subject to provisions of this Leave & License agreement and interest of the licensee under this agreement.  The Licensor also states that there is no litigation pending, touching the licensed premises in any court of law in India or abroad.

C.    The Licensor shall obtain the written consent [NOC] of the Builders/ Building / Management of the Complex as may apply to the grant of a license of the Licensed Premises in favour of the Licensee and shall deliver to the Licensee, a certified true copy of the same 
D.    The Licensor has represented and warranted that the Licensor has full right, absolute power and authority to enter into this Agreement with the Licensee for the Licensed Premises;

E.    The Licensee has requested Licensor to give the Licensed Premises on leave and license basis to the Licensee for residential use of Mr. [  Employee Name  ] which the Licensor has agreed to do upon and subject to the terms and conditions hereinafter appearing;

NOW THEREFORE IT IS HEREBY AGREED TO, DECLARED AND RECORDED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:-
The Licensor hereby grants to the Licensee, leave and license to use and occupy the Licensed Premises for a period of __ months on and from ___th ________ 2018.  Further, it is expressly agreed by and between the parties hereto that the first __ months of the licensee period is the lock-in-period. Both Licensor and Licensee shall be entitled to terminate this Agreement on _ month’s written notice only post the lock-in period.

1.    (a) The Licensee shall pay to the Licensor a monthly license fee or compensation of Rs ____/- per month (in words) for the use of the Licensed Premises, which shall be paid by the Licensee in advance on __th day of each rent month without any default.
(b)    There shall be an escalation of __ % in the monthly license fee after completion of initial __ months of the agreement tenure.
(c)    The Licensee shall regularly pay all telephone bills, electricity bills, Internet & gas bills at actual for use thereof by the Licensee in the Licensed Premises as per bills received.

2.    The Licensee shall at the Licensee’s own cost and expenses keep and maintain the interior of the Licensed Premises in good condition (reasonable wear and tear accepted).

3.    The Licensee shall observe all rules, regulations and bye-laws of the Builders/ Building / Management of the Complex for the time being in force in so far and to the extent required to be observed by the Licensee as the occupant for the time being of the Licensed Premises.  The Licensee shall not do or suffer to be done anything whereby the Licensor’s right to hold the Licensed Premises is avoided forfeited or extinguished. Failure to do so would give the Licensor the right to rescind/revoke the Leave and License agreement and claim for any damages sustained.

4.    The Licensee hereby granted by the Licensor to the Licensee is personal to the Licensee and the Licensee shall not assign, transfer, sublet or underlet the Licensed Premises or any part thereof to or in favour of any person, firm or company and/or assign and/or transfer the benefit of this Agreement to anyone.

5.    The Licensee shall not do or suffer to be done in or upon the Licensed Premises anything whatsoever which may be or become a nuisance or annoyance to or in any way interfere with the quiet or comfort of the Licensor or the other occupants of the building in which the Licensed Premises is situated.

6.    The Licensee shall permit the Licensor and its agents, surveyors and workmen with all necessary appliances to enter into and upon the Licensed Premises at all reasonable times by giving at least 48 hours prior notice in writing (except in an emergency) to the Licensee for the purpose either for viewing the condition of the Licensed Premises or for doing such works or things as may be requisite or necessary for any repairs either of the Licensed Premises and/or the water pipes and/or the drains in or under the Licensed Premises of for enabling the Licensor to perform any of the Licensee’s covenants and conditions contained herein.

7.    The Licensee shall not make any alternations in or any additions to the Licensed Premises or any part thereof of permanent or structural nature without the previous consent in writing of the Licensor provided, however, that the Licensee shall be at liberty at its own cost and expense to install lights, screens, shelves and partitions of a non-permanent or non-structural nature and other domestic house-hold fittings and appliances and to remove the same at its own cost and expense without in any manner damaging the condition of the interior of the Licensed Premises or any part thereof or the fixtures or effects thereof and restore the same to the original condition upon return of the premises (reasonable wear and tear accepted).

8.    The Licensor shall regularly and punctually pay all existing and future rents, rates, taxes, assessments, ceases or other out-goings whether Central, State or Municipal, assessed, charged, imposed, levied or payable in respect of the Licensed Premises or any part thereof and all increases therein including all charges for maintenance or other outgoings levied or recovered by the Society from time to time in respect of the Licensed Premises for or in connection with the grant by the Licensor to the Licensee of the license to use the Licensed Premises.

9.    The Licensor & Licensee shall observe and comply with the rules and regulations and bye-laws of the Builders/ Building / Managing Committee thereof for the time being in force in so far and to the extent they are required to be observed and complied with both the parties.

10.    Upon the Licensee paying to the Licensor the monthly licensee fee or compensation hereby fixed and observing and performing the terms of this Agreement, the Licensee shall be entitled to peacefully and quietly use and occupy the Licensed Premises during the period of this Agreement without any interruption or disturbance by the Licensor.

11.    The Licensee agrees to pay to the Licensor a sum of Rs.-------- (Rupees ---- Lacs only) as an interest-free refundable security deposit for due performance by the Licensee of the terms of this Agreement (hereinafter referred to as “the security deposit”). The Licensor acknowledges the receipt of the Security Deposit of Rs.------./- (Rupees -------- Lacs only).  The amount of interest-free refundable Security Deposit shall be retained by the Licensor and returned to the Licensee,  without interest, within 10 days of the Licensee removing itself and all its belongings chattels, articles and things from the Licensed Premises on the expiration or sooner determination of this Agreement and handing over vacant possession thereof to the Licensor.

12.    In the event of the Licensee refusing or failing for any reason whatsoever to comply with the provisions of clause 12 above despite the Licensor being ready and willing to return to the Licensee the amount of the Security Deposit paid by the Licensee the Licensor shall be entitled to forfeit the Security Deposit without prejudice to his right to evict the Licensee and recover possession of the licensed premises. Also, the Licensee will be liable to pay 2 times the License fee or compensation per day as specified in Cause 2(a) of this agreement till such time that the Licensee handing over peaceful and vacant possession to the Licensor.

13.    In the event of termination or sooner determination of the agreement, if the licensee is ready and willing to return the premises & has paid all dues and rent as required, & the licensor fails or refuses to return the security deposit, then the licensee shall be allowed to use the premises free of cost and charge the licensor an interest of 18 % p.a. on the non-refunded security deposit amount, till such time that the licensor refunds the complete security deposit amount along with any such penalty interest amount. 

14.    If at any time during the License period or extension/renewal thereof the Licensed Premises are destroyed/damaged and rendered unfit for use and habitation, not due to the negligence of the Licensee, the License granted under this Agreement shall stand terminated and the Security Deposit shall become refundable within one month period of the said destruction/damage. The Licensor shall refund the Security Deposit without any delay or demur.

15.    Nothing herein contained shall be construed as creating any right, interest, easement, tenancy or sub-tenancy in favour of the Licensee in over or upon the Licensed Premises or any part thereof or transfer any interest therein favour of the Licensee other than the permissive right of use hereby granted.

16.    In the event of Licensee committing default in carrying out any of the terms and conditions of this Agreement and/or committing default in payment of the license fee for any two months and/or committing default in payment of the charges of telephone bills and/or electricity bills, the Licensor shall be entitled to terminate this Agreement by giving thirty days notice and if despite such notice the default continues this Agreement shall automatically stand terminated and the consequences of expiration/determination/termination of this Agreement shall follow.

17.    It will be incumbent on both the Parties for getting the Agreement adjudicated for stamp-duty payable thereon and registered as required The charges of stamp duty and registration on this Leave and License Agreement will be borne by the licensors.

18.    The Licensors and Licensee, each shall bear their respective legal & real estate advisors costs if any. 

19.    Any notice required to be served hereunder shall be sufficiently served on the Licensor if sent by registered post acknowledgement due to the Licensor’s address at 

[   permanent address of licensor] 

and in the case of the Licensee at Licensee’s Address 
[  permanent address of licensee ].

20.    This Agreement will be subject to the exclusive jurisdiction of the Courts in Mumbai only.

IN WITNESS WHEREOF the parties hereto have executed this Agreement in duplicate the day and year first above written.

SIGNED 
By Licensor        and    (Second Owner If any)

In the presence of
1.    Mr. _______________

SIGNED by ( Licensee)

In the presence of

1.    Mr. _______

•    LEGAL ADVICE REGARDING LEAVE & LICENSE AGREEMENT:
A leave and license agreement is required to be printed on stamp paper of correct value, as per the laws in different States. If (following Section 17 of the Registration Act), you are required to register your leave and license agreement, you must do so. A properly stamped and registered leave and license agreement is valid evidence in the Court of law. Leave and license agreements are governed by the Indian Easements Act, 1882.