Lease / Leave & License Agreement

What This Service Is

You need to choose carefully between a Lease, which falls under the Transfer of Property Act, 1882 — the law that governs how property ownership is transferred — and a Leave & License Agreement, which falls under the Indian Easements Act, 1882 — the law about rights to use someone else's land. This is a very important decision for any property owner before someone else uses their property.

A Lease gives the tenant, called a lessee, a long-term right to the property. These rights can even stand against a new owner if you sell the property. A Leave & License Agreement only gives a personal permission to use the property. It does not create any lasting right to the property. It is much easier to end and enforce than a Lease.

In places like Delhi-NCR, most agreements for homes and businesses are Leave & License agreements. This is done specifically to keep your right, as the owner, to cancel the agreement and get your property back. Using the wrong agreement, or an agreement written poorly, can trap you under old rent control laws. It can give tenants rights to stay that last longer than you agreed. It can also make getting your property back a very long court fight.

What the Service Entails

We do not use standard templates. The best way to structure your agreement depends on many things. These include whether your property is a home or a business, who the parties are (an individual, a Joint Hindu Family (HUF), a company, or an Indian citizen living abroad (NRI)), how long the agreement will last, and if sub-letting will be allowed. We also consider the specific State Rent Control laws that apply to your property.

First, we figure out if a Lease or a Leave & License Agreement is best for your goals. We also check the laws that apply to your property. Then, we design the agreement. This includes describing what right is being given and its limits. We precisely define the property, listing all items like fixtures and fittings included in the agreement. We set the license fee or rent and how it might increase. We detail the security deposit terms and how it will be returned. We also cover the length of the agreement and how to renew it. We clearly state your rights, as the owner, to end or cancel the agreement. We set rules on how the tenant or licensee can use the property and if they can sublet it. Finally, we outline the process for you to get your property back when the agreement ends or is cancelled. We review the first draft to make sure it is consistent and meets the requirements for stamp duty — a government tax on documents — and registration. After we discuss your specific protection clauses and any changes you need, you will receive the final, ready-to-sign agreement.

Our Specialized Inputs

The most common mistake in residential Leave & License agreements is not including a clear clause about cancelling the agreement. This clause should be linked to specific events. Without it, the person living there might claim a lasting right to the property. We write every agreement with a carefully worded cancellation clause. We also analyze any lock-in period — a time when neither party can end the agreement. And we include a clear statement from the tenant or licensee that they are not gaining any ownership right in the property. For commercial leases, we look at where they are exempt from Rent Control Act — the law controlling rent and tenant eviction. For example, properties above a certain value in Delhi and Haryana are generally not covered by this Act. We also check if RERA — the Real Estate (Regulation and Development) Act, 2016, which protects property buyers — applies. We also review GST registration obligations — rules for a national tax added to goods and services. For NRI landlords, we address the tax deducted at source (TDS) obligations of the tenant or licensee. We also ensure compliance with FEMA — the Foreign Exchange Management Act, 1999, which regulates foreign exchange in India.