A leave and license agreement is an agreement wherein the licensor temporarily allows the licensee to use and occupy licensor's immovable property full or a portion of it, for the purpose of carrying business activity or residential use. Registration of Leave-and-License Agreement for more than 11 months is necessary in case of a dispute as only a registered agreement is admissible as evidence in court.
Sample Format of Leave and License Agreement is given below.
LEAVE AND LICENSE AGREEMENT
This Agreement of Leave and License is made at _________ this Day___ of _______ 20__, BETWEEN
Mr ______________ S/o ______________, R/o ______________, hereinafter referred to as the LICENSOR (which expression shall mean and include his heirs, legal representatives, successors and assignee) of the one part
______________ a public limited company incorporated under the provisions of Indina Companies Act, 1956 having its head office at ______________ through its ______________ , who is duly authorised by the company, to take the premises on rent and execute the lease agreements (hereinafter referred to as the LICENSEE), of the other part (which expression shall mean and includes its heirs, legal representative, successors and assignee).
WHEREAS the LICENSOR is seized and possessed and is otherwise well sufficiently entitled to enter into lease agreement for the residential property known as ______________New Delhi-1100__.
WHEREAS the LICENSEE is desirous to take the second floor comprising drawing cum dining room, two bed rooms with attached bathrooms and one kitchen of property bearing No ______________, New Delhi (hereinafter referred to as the DEMISED PREMISES) for use as a residence of its Managing Director, ______________.
WHEREAS at the request of the LICENSEE, the LICENSOR has agreed to grant to the LICENSEE in respect of the demised premises on a monthly rent of Rs ______________ (Rupees ______________ Only) w.e.f. ______________ ,20__ on the terms and conditions hereinafter contained.
NOW THIS DEED WITNESSETH AS FOLLOWS:
1. In consideration of the rent hereby reserved and of the convenants, agreements and conditions herein contained and on the part of the LICENSEE to be paid, observed and performed the LICENSOR does hereby grant demise to the LICENSEE the Second floor portion comprising of one drawing cum dining room, two bed rooms with attached baths, and a kitchen (hereinafter referred to as the DEMISED PREMISES) commencing from ______________, 20__
2. The LEESEE hereto convenants with the LICENSOR as follows:
i) To pay the monthly rent hereby reserved in advance on or before the 10th day of each English Calendar month.
ii) That the present lease is for a period upto ______________, 20__.
iii) To pay all charges for electricity (both for light and power) and water consumed by the LICENSEE in the Demised premises as per the bills/ demands received from the concerned Municipal and other authorities.
iv) Not to sublet, assign or otherwise part with the possession of the Demised Premises in any manner.
v) To keep and maintain the exterior and interior of the Demised Premises and the LICENSORS sanitary, electrical and other installations, fixtures and fittings in a good and substantial repair working order and conditions as they are at the time of commencement of this lease and to restore and replace such of them as are broken and or damaged by the LICENSEE.
vi) Not to carry out any structural or other additions or changes or alterations in the demised premises, layout, fittings or fixtures without the prior written consent of the LICENSOR, which the LICENSOR shall be entitled to refuse in his absolute discretion.
vii) To keep the interior and exterior of the demised premises in clean, tidy and tenantable conditions.
viii) To permit the LICENSOR or his authorised representatives at all reasonable times with or without Architects, contractors, workmen or others to enter upon the demised premises for the purpose of viewing the state and condition thereof or carrying out such works as may be requisite or necessary for any repairs to the demised premises or water pipes, drainage, etc.
ix) To use the entrances for access to the demised premises so as not to cause any obstruction or hindrances of any kind to the LICENSOR / occupier of the other portions of the property. The passage and the Stairs shall be kept clean.
3. The LICENSOR HEREBY AGREES :
i) To pay the house tax, ground rent or other outgoings payable by the LICENSOR at rates applicable at the time of commencement or determined in relation to the period of the lease.
ii) To be responsible to effect any major or structural repairs to the demised premises occasioned by any cause or causes not attributable to the LICENSEE.
4. In case the either Party is desirous of terminating the lease the they may do so by at least one month prior written notice.
5. The LICENSEE hereby waives notices/any requirement of notice to quit upon the expiry of the term of this lease and has assured and undertaken to quit and vacate the premises and handover the vacant possession with the expiry of the terms without any notice for the purposes or extend lease for further 11 months if mutually acceptable in writing.
6. That the Lease can be mutually extended for further a period of 11 months.
7. If any dispute(s) arises out of this Lease Deed, same shall be resorted to Arbitrator appointed by mutual consent as per the provision of Arbitration Act 1996.
IN WITNESS WHEREOF the parties have executed this Deed on the day, month and year first as above written.
Section 52 "License" defined
Where one person grants to another, or to a definite number of other persons, a right to do, or continue to do, in or upon the immovable property of the grantor, something which would, in the absence of such right, be unlawful, and such right does not amount to an easement or an interest in the property, the right is called a license.
Section 53 Who may grant license
A license may be granted by any one in the circumstances and to the extent in and to which he may transfer his interests in the property affected by the license.
Section 54. Grant may be expressed or implied
The grant of a license may be expressed or implied from the conduct of the grantor, and an agreement which purports to create an easement, but is ineffectual for that purpose, may operate to create a license.
Section 57. Grantor's duty to disclose defects
The grantor of a license is bound to disclose to the licensee any defect in the property affected by the license, likely to be dangerous to the person or property of the licensee, of which the grantor is, and the licensee is not, aware.
58. Grantor's duty not to render property unsafe
The grantor of a license is bound not to do anything likely to render the property affected by the license dangerous to the person or property of the licensee.
Section 59. Grantor's transferee not bound by license
When the grantor of the license transfers the property affected thereby, the transferee is not as such bound by the license.