Swadha 13 August 2022
A Leave and Licence agreement is a document that gives the Licensee permission to hold the property of the Licensor. Occupancy is thus issued based on leave and license and not based on ownership. Such an arrangement encourages eviction and gives greater control to the landlord in general.
Leave and Licence agreement is separate from leases as leases generate interest in a property whereas the former does not. Also, leases are easy to transfer which is not the case in a Leave and Licence agreement.
As per Indian law, a “Licence” is a right given by one person to another person or a group of people. Such rights normally involve actions performed in or upon immovable property, actions that would seem unlawful otherwise. The license gives personal rights and such rights are not transferable. Licensor is the person who gives the Licence and a Licensee is a person who pays for the Licence and holds the rights. Licenses must not be mixed with leases or rental agreements as they are each diverse in their own characteristics.