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Jitendra Lal   21 February 2024

rent agreement vs leave licence

What is the difference in rent agreement and leave and license agreement. Is there any difference in the contents of the two.


 2 Replies

T. Kalaiselvan, Advocate (Advocate)     21 February 2024

even though a Normal Rent Agreement or lease agreement is the safest for tenants, property owners have a preference for the leave-and-license agreement. This is because the leave-and-license agreement does not generate any interest in the property for the licensee. The licensee gets the right to get in, live in, and make use of the property.

In principle, the right to occupy the property under a Normal Rent Agreement or lease agreement is overseen by the provisions of section 105 of the Transfer of Property Act. However, Section 52 of the Indian Easement Act governs the right to live in licensed property. The Transfer of Property Act generates an interest in the land for the leaseholder for the period of the lease. It boosts the leaseholder’s chances of holding on to the land even after the termination of the rent tenure.

Furthermore, the Indian Easement Act generates no titles or curiosity for the licensee. The licensee acquires the right to enter and exploit the property for a restricted period. Besides, the licensor can end the license if he feels to . As a consequence, landholders gain by entering into a leave-and-license agreement.


Jitendra Lal   22 February 2024

Thanks a lot sir

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