What is leave and license agreement?

Table of Content

• Who is the licensee?
• What are the clauses that come under the leave and license agreement?
• What documents are required for L&L Agreement?
• Where to get a leave and license agreement?
• What are the advantages and disadvantages of leave and license agreements?
• Can leave and license agreement be for more than 11 months?
• Is it necessary to register to leave and license agreements?
• Difference between a rental agreement and a leave and license agreement?
• Is police verification required for leave and license agreements?
• Conclusion

Any property which is unbudgeable comes under leave and license agreement. The set of legal documents which grants a person the right to occupy it by the owner is labeled as a leave and license agreement. A document that is popular among tenants and landlords. The legal authority remains with the owner only the tenants get to occupy the property. However, there is more to it, let’s dig deeper into it:

Who is the licensee?

Suppose, you have occupied a property on a leave and license agreement. Then you and the owner of that property will be known as the licensor and licensee. In simple words, the person who has been granted permission se that property as a licensee, and the owner of that property is called a licensor.

(Image of licensor and licensee)

What are the clauses that come under the leave and license agreement?

The clauses that are covered on leave and license agreement are-

1. Information on the disputed properties, 
2. Information on rent or consideration payments,
3. Duties and obligations of the parties and between them,
4. The length of the license or the duration of the contract, 
5. Information on the security deposit,
6. Information on upkeep, electricity, and water costs,
7. Cancellation and renewal of licenses,
8. Penalty clause defining the specifics of the punishment that would be imposed on either party should it fail to carry out its obligations in line with the agreement, 
9. Information about fixtures and a list of the property,
10. General clauses (including those relating to confidentiality, dispute resolution, application of the law, and termination of the agreement),
11. Date on which the contract was signed.

What documents are required for L&L Agreement?

The Only documents you need for the l&l agreement are:

• The ID proofs of both parties.
• Address proofs of both parties.

(Format of the Leave & License Agreement)

Where to get a leave and license agreement?

There is a set format for the look of the leave and license agreement but no set way of drafting it. Either get it made Online or Offline. 

1. Any nearby court, you can get it drafted by a lawyer. 
2. Both parties should carefully scrutinize it. If any clause needs to be mended.
3. Signatures of both the parties are needed.
4. Then it should be printed on a stamp paper.
5. Lastly, get it registered in the Sub registrar’s office.

During the Online procedure, you can look up to authentic online websites. As per my knowledge, people are supposed to:

1. Fill up the concerned form,
2. Checkout the details again.
3. Give out the shipping address.
4. Lastly, make the payments and sit back.

Everything’s done. Even eDrafter.in provides Rental Agreement service online with the same simple procedure. Make your purchases now.

What are the advantages and disadvantages of leave and license agreements?

In many articles, you might have read that only Owners have the upper hand in this but it might not be true, so let’s find out!

Pros of Leave and license agreement	Cons of leave and license agreement
The expectations are already lashed out to both parties.	There may be chances of losing brand power and goodwill if any one of the parties gets into a scandal.
It is a time-saving, pocket-friendly & hassle-free process.	The procedure can get lengthy if you come across any wrong person.
Both parties have equal control over the clauses in the agreement.	The Tenant does not feel a sense of security since they the fear of getting evicted.
The eviction under leave and license agreement is much easier.	The landlord can get troubled if he/she comes across a nasty tenant.

Can leave and license agreement be for more than 11 months?

Absolutely not, under the Registration Act 1908, to avoid the hefty Stamp Duty and registration charges the leave and license agreement is usually prepared for 11 months only. This is also the reason why the leave and license agreement is of 11 months. Don’t get confused between Rental Agreement and the leave and license agreement. The rental agreement is compulsory to register if it is for 12 months. 

Is it necessary to register to leave and license agreements?

Registering all your legal documents gets you on the safer side. Eventually, according to section 17 of the Registration Act 1908 it is mandatory to get your leave and license agreement registered. In near future, no hurdles would be coming your way.

What hurdles could you face? Hmm.. Let’s see. If you have not got your leave and license agreement registered then in the eyes of the government it didn’t come to notice. So if any kind of dispute happens and some uncertain situation is put forward then no support from the government can be provided but in case your leave and license are registered then it is legally valid and you can take help from the government.

Difference between a rental agreement and a leave and license agreement?

Getting confused between a rental agreement and on leave and license agreement should be a real deal since both documents come in handy when a place needs to be put on lease or rented on lease. But you need to be updated in detail so let’s find out leave and license agreement vs rental agreement:

Basis of Distinction	Rental Agreement	Leave & License Agreement
Governed By	Rental Control Act	Indian Contract Act
Possession	Exclusive rights are given to the tenant of the rented property.	The licensee has the right to occupy the property but the ownership remains with the owner.
Stamp Duty	Stamp Duty is higher	Stamp duty is comparatively low
Revocability	The landlord can not revoke the Rental Agreement.	Can be revoked by the landlord as the ownership remains with him.
Transferability	Can not be transferred or terminated.	Can be transferred and terminated as per the landlord’s wish.

Is police verification required for leave and license agreements?

Police verification has never been optional with any legal documents. For a leave license agreement, police verification is a must. The documents which are needed for the verification are:

1. Identification Proof – Aadhar Card, Ration Card, Driving License, or Passport
2. Two Passport size photographs.

Conclusion

The terms and conditions of a temporary occupation arrangement between a licensor and a licensee are governed by a Leave and License agreement, which is a legal instrument. This agreement enables the licensor to transfer ownership of the property while granting the licensee the right to inhabit and use the property for a predetermined time. The period of the licence, the rent and other fees due by the licensee, the license’s purpose, the parties’ rights and obligations, and the termination conditions must all be expressly stated in the agreement. To prevent future disagreements and legal issues, it is crucial to make sure that a Leave and License agreement is correctly designed, reviewed, and signed.