AAP Tax Law

Leave and License Agreement Format for Temporary Property Use

Updated sample deed for residential or other permitted temporary use of immovable property in India, with practical clauses and current central-law guidance on licences, leases, registration and dispute resolution.

A leave and license agreement permits a licensee to use specified immovable property without, by that permission alone, creating an interest in the property. Section 52 of the Indian Easements Act, 1882 describes a licence as a right to do something on another person's immovable property that would otherwise be unlawful, where that right does not amount to an easement or an interest in the property.

Important: The legal character of an arrangement depends on its real terms and effect, not merely its heading. A document that transfers a right to enjoy immovable property may operate as a lease. State-specific rent, stamp-duty and registration laws must also be checked before execution.

Sample Leave and License Agreement Format

This general specimen should be adapted to the property, permitted use, applicable State law, stamp duty, registration requirements and the parties' commercial arrangement.

LEAVE AND LICENSE AGREEMENT

This Leave and License Agreement is made at ______________ on this _____ day of ______________ 20__.

BETWEEN

Mr./Ms. ______________, son/daughter/wife of ______________, residing at ______________, hereinafter referred to as the "LICENSOR" (which expression shall, unless repugnant to the context, include his/her legal representatives, successors and permitted assigns) of the First Part;

AND

______________, a company/body/individual having its address at ______________, acting through its duly authorised representative ______________, hereinafter referred to as the "LICENSEE" (which expression shall, unless repugnant to the context, include its/his/her legal representatives, successors and permitted assigns) of the Second Part.

WHEREAS:

A. The Licensor represents that he/she is lawfully entitled to grant temporary permission to use and occupy the property situated at ______________ ("Licensed Premises").

B. The Licensee has requested permission to use the Licensed Premises solely for residential / permitted commercial purposes, and the Licensor has agreed subject to the terms below.

C. The parties intend this document to record a leave-and-license arrangement and not to create any tenancy, leasehold or other transferable interest in the Licensed Premises, subject always to the true legal effect of the arrangement and applicable law.

NOW IT IS AGREED AS FOLLOWS:

1. Licence Period. The Licensor grants the Licensee permission to use the Licensed Premises from ______________ to ______________, unless terminated earlier in accordance with this Agreement.

2. Licence Fee. The Licensee shall pay a monthly licence fee of ₹______________ (Rupees ______________ only), payable on or before the _____ day of each calendar month, subject to applicable tax-deduction or other statutory requirements.

3. Security Deposit. The Licensee shall pay an interest-free refundable security deposit of ₹______________, refundable after adjustment of unpaid dues and the cost of damage beyond normal wear and tear, if any.

4. Permitted Use. The Licensed Premises shall be used only for ______________. The Licensee shall not use the premises for any unlawful, hazardous or unauthorised purpose.

5. Utilities and Outgoings. The Licensee shall pay charges for electricity, water, gas, internet and other consumption-based services attributable to the period of occupation. Property tax, ground rent and ownership-related statutory outgoings shall be borne by the Licensor unless otherwise agreed in writing.

6. No Transfer or Parting with Possession. The Licensee shall not assign, transfer, sub-license, induct another occupant, or part with possession or use of the Licensed Premises without the Licensor's prior written consent.

7. Maintenance. The Licensee shall keep the interior of the Licensed Premises and the fixtures and fittings provided with it in reasonable condition, subject to normal wear and tear. Structural repairs not caused by the Licensee shall be the responsibility of the Licensor.

8. Alterations. No structural addition, alteration or permanent fixture shall be made without the Licensor's prior written consent and all permissions required by law.

9. Inspection. On reasonable prior notice, the Licensee shall permit the Licensor or an authorised representative to inspect the Licensed Premises at reasonable times, except in emergencies where immediate access is reasonably necessary.

10. Compliance with Law and Society Rules. The Licensee shall comply with applicable law and lawful rules of the building, apartment owners' association, residents' welfare association or other competent body, where applicable.

11. Termination. Either party may terminate this Agreement by giving _____ days' prior written notice, unless a different lock-in or termination arrangement is expressly stated in writing.

12. Handover. On expiry or lawful termination, the Licensee shall vacate the Licensed Premises, remove personal belongings and return possession and keys to the Licensor, subject to applicable law.

13. Extension. Any extension or renewal shall be only by a fresh written agreement or written extension executed by both parties and completed with the stamp and registration formalities, if any, then applicable.

14. Dispute Resolution. The parties shall first attempt amicable settlement. If they agree to arbitration, disputes capable of being resolved by arbitration shall be referred to arbitration under the Arbitration and Conciliation Act, 1996, as amended from time to time. The seat/place of arbitration shall be ______________, the proceedings shall be in English/Hindi, and the arbitrator shall be appointed in accordance with the parties' agreement and applicable law.

15. Governing Law and Jurisdiction. This Agreement shall be governed by Indian law. Subject to any valid arbitration agreement and applicable jurisdictional rules, courts/competent authorities at ______________ shall have jurisdiction.

16. Stamp Duty and Registration. The parties shall ensure payment of applicable stamp duty and registration of this instrument wherever required by the law applicable in the State/Union Territory in which the Licensed Premises is situated.

IN WITNESS WHEREOF, the parties have signed this Agreement on the date and place first stated above.

LICENSOR

Signature: ____________________
Name: ________________________
LICENSEE

Signature: ____________________
Name/Authorised Signatory: ________________________

Witnesses

1. Name: ____________________   Signature: ____________________

2. Name: ____________________   Signature: ____________________

Relevant Provisions of the Indian Easements Act, 1882

Section 52 - "License" defined: establishes the essential concept of a licence: permission to do something in or upon the grantor's immovable property which would otherwise be unlawful, without creating an easement or an interest in the property.

Section 53 - Who may grant license: addresses the capacity of a person to grant a licence to the extent to which that person may transfer an interest in the affected property.

Section 54 - Grant may be express or implied: recognises that a licence may arise expressly or by implication from the grantor's conduct.

Section 57 - Grantor's duty to disclose defects: requires disclosure of a dangerous defect in the property known to the grantor and not known to the licensee.

Section 58 - Grantor's duty not to render property unsafe: requires the grantor not to do anything likely to make the affected property dangerous to the person or property of the licensee.

Section 59 - Grantor's transferee not bound by license: provides, subject to the statute and the particular facts, that a transferee of the grantor is not as such bound by the licence.

Sections 60 to 64 additionally deal with revocation of licences and certain rights following revocation or eviction. Users should read the current statutory text and obtain advice for the particular facts before relying on a general specimen.

Official Legal Sources

Disclaimer: This page provides a general legal format and informational overview. Stamp duty, registration, rent-control rules, police/tenant verification requirements and local procedures may vary by State, Union Territory and property type. Obtain professional advice for a transaction with material legal or financial consequences.