A Leave and License Agreement is an Agreement where the licensor (Owner) allows the licensee (Renter) to temporarily occupy and use one portion of immovable property for carrying on his business for residential purposes.
“Leave and License” is different compared to rental or lease agreement. Under 'Leave and License', the 'Owner' leaves the property with various facilities and amenities and give license to the other party to use the complete set of things including services and amenities while the Owner is on 'Leave' for a specific period. Once the 'Leave' is over when the 'Owner' returns, the entire set of facilities are to be left behind and another party should leave the premises.
Leave and License Agreement holder should not make any other alterations or use the premises for other activities than what was initially projected.
We at Easy Rent Agreement, Pune,Maharashtra provide Online Leave and Licence Agreement, you can fix an appointment, we provide doorstep visit for verification and other procedures.
Important clauses to add in Leave and License agreement
Leave and license agreement is important in protecting the rights of both the parties Owner and the renter. It is important that conditions must be put down on legal stamp paper and legally registered by government authorities i.e the Sub-Registrar’s Office to protect the interests of both parties.
Licensees( renter )need to guarantee that the agreement openly records splitting of license fee payable and also respective obligations towards his/her share of the aggregate license fee. However, if there are more than one licensees then all will be responsible for the total fee;
There is a provision In case if one of the licensees wants to leave the agreement, there is no need to terminate the whole agreement, the remaining licensee can continue with the same. This provision must be inserted while drafting to save time and other procedures.
If the Licensee or renter incur any major expenses regarding furnishing or maintenance, add a clause that ensures that licensor has to repay such major expenses in the agreement period.
Licensee should reserve the right to retain occupancy of premises and property free of rent if, after the termination of term or agreement, the licensor refuses to return the security deposit.
Why Registration of Leave and License Agreement is Important
Nobody wants to see themselves involved in legal disputes, Any agreement for leave and license has to be in writing and it is mandatory to register the agreement.
The responsibility of getting such agreement registered is on the licensor. Any licensor who violates these provisions is liable to be punished with imprisonment up to three months or with fine up to Rs. five thousand or with both.
The Renter or the Licensee is liable for paying the Stamp Duty and the E-Registration charges. Though, it is the Licensor who will be responsible in his absence while registration of the agreement. Hence, the landlord must ensure that the registration of the document is obligatory.
You can complete the procedure of Leave and Licence Agreement Registration at Easy Rent Agreement in all over Maharashtra our experienced experts will guide you from drafting the Leave & License Agreement to its Registration.
The unregistered Agreement has no legal value in case of a dispute going to the court of law, it will not be taken as evidence. To protect the rights of both parties, Licensor and Licensee(owner and renter) Leave and Licence Agreement and its Registration is a must.