Romi Suri (Mktg) 17 October 2011

Need advice -leave and license of flat

Dear Sir /Mam,

Objective- To ensure my INTEREST in the flat is always protected

I have a 1BHK Flat in Parle which i have given on Leave and License Basis to a Pvt company who uses it as a office .Since now in Jan-2012 the agreement would expire would like know

1. What is the maximum Period for Leave and License Agreement ,since this PVT Company looks genuine i would like to continue under leave and license for the longest period?

2.Also I want to always ensure that on expiry of the agreement the Licensee should always peacefully hand

over the premises so i have added a point in the agreement which mentions the Licensee is sharing the premises with me and is using only 1 room for his usage and on expiry if he is asked to vacate and if he fails to do so then 10,000 Rs penalty would be charged on a daily basis.

Request you to please suggest if any other strong points i can add as i always want to ensure that my Flat is always protected .

Thanks !

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4 Replies

Nagesh Rudrakanthwar (Company Secretary) 17 October 2011

As you have rented your flate on Leave & Licence so you dont worry to concern about your right on your flate.

as Leave & Licence agreemnet always protects the rights of the land lord. As far as the maximum period is concern you can opt for 3 years agreements. But it will be better to do the 11 monts agreement because if you dont want to continue then you dont need to renew the agreement.

ajay sethi (lawyer) 17 October 2011

go in for 33 months months agreement with renewal clause . renewing every 11 months is tedious exercise . i presume you hav etaken secuirty deposit . in the vent of failure to pay on time licence fees ask for interest at 18%

Romi Suri (Mktg) 17 October 2011

Really appreciate and thanks Mr Nagesh and Mr Ajay for your prompt reply also is there a maximum period for leave and license ( how many times can I renew 11 months agreement with 1 client ) since I heard that max period for leave and license can be 5 years only either directly for 5 years or say like in break up say agreement of 12 months every year and 5 times only i.e 60 months only) after that it becomes lease which is not safe for my property ..Please correct me if I am wrong And plz advise me what should I do . Thanks again

Romi Suri (Mktg) 17 October 2011

Also would like to know for my 1 Bhk flat 1) Can I give my 1 Bhk flat on leave and license basis only for residential purpose or 2) can I give my flat under leave and license for using it for commercial office purpose ????