Leave & License Agreement
Built Trust
(Querist) 22 September 2010
This query is : Resolved
I want to Know about the applicability of Leave & License agreement in Delhi.
Can property be given on rent through Leave & License Agreement in Delhi? what are the registration Charges for the same.
Is it better than Lease Agreement.
Raj Kumar Makkad
(Expert) 22 September 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.
In view of above, you yourself can decide which way to go in your best interest as well as suitable to other party as agreement should be acceptable to both the parties.
Y V Vishweshwar Rao
(Expert) 22 September 2010
I agree with Mr Makkad , the opinion is very clear and explaining the nature of the Lease and License.
Devajyoti Barman
(Expert) 22 September 2010
Yes right. I generally advise my clients to go for leave and license agreement.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 28 September 2010
Yes sir there are finer points of law hidden in these provisions.
As detailed above by experts combined the leave and license is for limited period , so such agreements are done for eleven months only.
Most of the State rent acts provide one year period for such agreements , moment this limit is crossed the person becomes a protected tenant.
