Difference between "Lease" and "Leave & License"

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Querist : Anonymous (Querist)
20 March 2010

* What's the difference between "Lease" and "Leave & License" in case of 11 months period?
* Is "Leave & License" still applicable in NCR region (though I never heard of it till recently)?
* Which one an owner should go for so as to keep all the rights to evict a tenant (at will)?
* I want to rent out for fixed term of 11 months with no renewal clause in the "contract". This is to make sure that the tenant can't claim to continue to live in the premises and has to leave after the expiry of "contract".

raj kumar makkad (Expert)
20 March 2010

A Lease, defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement.

License is defined in Section 52 of the Indian Easements Act,1882. License does not allow any interest in the premises on the licensee's part. It merely gives the licensee the right to use and occupy the premises for a limited duration.

A lease deed needs to be stamped and registered. The amount payable towards the lease deed's stamp duty is more than that payable towards the Leave and License's. For a period exceeding three years, the stamp duty is same for both agreements.

It is still applicable in NCR and I suggest you to enter agreement for Leave and License in your case

Querist : Anonymous (Querist)
20 March 2010

Thanks Mr. Makkad. Good and clear explanation indeed.

* However, if I (like majority of people) am not mistaken, lease needs to be registered only if its 1 year or more. 11 months lease does not need registration.

* Does registration of lease give extra rights to owner?

* Does Leave & License need registration in case of 11 months contract?

* If I understand your reply well, Leave and License protects owner and is a better option than Lease. Could you suggest some of the de-merits of leave & License compared to Lease.

* I wonder why people do not use leave and License.

* Is Leave & License also applicable for commercial as well as residential properties or any other property? And is the verdict in favour of L&L in all of the cases?

raj kumar makkad (Expert)
20 March 2010

*Your understanding is based upon general practice and it is correct but legally lease can be got registered even for the shorter period also.

*What do you mean by extra rights? Please specify it.

*Legally no but it is advisable to get it registered.

*It depends upon the desire of the owner of the property. In your case as per your desire I find LL as fittest option.

*No comments


Querist : Anonymous (Querist)
21 March 2010

Thanks sir ji.

* Registration of lease and L&L: What's the advantage of registering a 11 months lease and/or L&L? Note that it costs and it is allowed by law that registration of lease is not necessary. I don't know if it is necessary in case of L&L.

* Could you please suggest some of the de-merits, if any, of leave & License compared to Lease. It will help to take an informed decision.

Querist : Anonymous (Querist)
22 March 2010

Another important point has come up after going through this site.

* What's the difference in the format of Leave and License and Lease. Is Leave and License as heading/title of the agreement sufficient?
* May I have the format of Leave and License.
* If a tenant does not leave after the expiry of Leave and License agreement then what's the procedure to evict the tenant?


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