Two agreements, two different legal positions
People in Maharashtra often use "rent agreement" and "leave and licence agreement" as if they mean the same thing. They do not. A lease or tenancy gives the tenant an interest in the property. A leave and licence only gives the licensee permission to occupy it, while the owner keeps possession and control.
Key differences
- Nature of right: a tenancy creates an interest in the property; a licence is a personal permission to use it.
- Tenant protection: a licensee generally does not get the protections that a statutory tenant may claim, which is why most owners prefer a leave and licence.
- Typical term: residential leave and licence agreements are commonly made for 11 months and renewed.
- Registration: in Maharashtra, a leave and licence agreement must be in writing and registered.
Which one should you choose?
Most residential arrangements in Maharashtra are done as a leave and licence agreement because it is simple and clear for both sides. If you are unsure which document fits your situation, talk to a professional before signing.
Need help? Create a free draft or call +91 84080 08676. Easy Rent Agreement offers online rent agreement and leave and license agreement registration with doorstep service across Maharashtra.