Rent agreement

Naresh Gupta (Querist) 23 November 2021 This query is : Open
I want to rent out my house. I had read somewhere that "Rent Agreement" should be replaced by "License and Leave Agreement" because Rent Agreement can legally make the tenant the owner of the house. Please guide as to which agreement should be made.

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Quick Summary

When renting out your property, choosing the right agreement is crucial. While a traditional 'Rent Agreement' might inadvertently grant tenants rights akin to ownership, a 'Licence and Leave Agreement' is generally considered safer for landlords. This type of agreement clarifies that possession remains with the owner, offering more control and easier termination compared to a lease, which can be subject to rent control laws and favour tenants.

kavksatyanarayana Online

(Expert) 23 November 2021
The lease & license agreement is not necessary for my view and a lease deed shall be executed between the owner and tenant (lessor and lessee) with the terms and conditions such as monthly rent, period lease, advance to be adjusted, or refunded, paying taxes, electricity bills etc. And the lease deed shall be registered at SRO concerned.

Advocate Bhartesh goyal (Expert) 24 November 2021
If you want to let out your house for up to 11 months then get executed Rent Note and if you are planing to let out your house for more than 11 months than Lease Deed is best option.Generally tenant does not agree for leave and licence agreement as it is revocable .At anytime by giving notice.

SHIRISH PAWAR, 7738990900 (Expert) 24 November 2021
Hello,

Leave and Licence agreement is safer than rent agreement. So execute Leave and Licence agreement instead of Rent Agreement.

R.K Nanda (Expert) 24 November 2021
Leave and license agreement is better than rent agreement.

Dr J C Vashista (Expert) 24 November 2021
There is very limited and technical difference between the two terms of rent agreement and Lease and Licence Deed.

K Rajasekharan (Expert) 26 November 2021
There is substantial difference between a lease and a license.

In lease, the tenant gets some rights in the property, particularly the possession of the property and premises. Eviction of a lessee is quite difficult as it is based on the rent control act and its provisions which favours the tenant.

In licence, the possession of the property remains with the owner and what is given is only a permission to do certain things as specified in the license deed.

When the license period is over, the license holder has no right in the property. A license is only a privilege to do certain specified things in the property and that will come to a close after the license period.

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