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leave and license is valid or invalid?


22-Aug-2023 (In Landlord/Tenant Law)
My father rented a house in Virar. He did the leave and license agreement paper with tenant but now society chairman and other members are forcing us to submit registered agreement to them otherwise they will charge 2000 rs as per decision taken by them in last AGM. We were not aware about this and they are charging us rs. 2000. My question is can society forcefully ask to submit registered agreement copy to them? Is there any compulsion on making registered agreement while renting the house in Maharashtra?
Answers (1)

Answer #1
725 votes
A Leave and Licence agreement is a document that bestows the Licensee with the permission to occupy the Licensor’s property. Hence the occupancy is granted on Leave and Licence basis and not on tenancy basis. Such an agreement makes eviction easier and is general provides the landlord with greater power.

Leave and Licence agreement is different from leases as leases create an interest in property whereas the former does not. Also, leases are transferable which is not the case in a Leave and Licence agreement.

As per the Indian law, a “Licence” is a right granted by one person to another person or a group of people. Such rights usually concern actions performed in or upon immovable property, actions which would seem unlawful otherwise. Licence grants personal rights and such rights are not transferable.

Licensor is the person who grants the Licence and a Licensee is the person who pays for the Licence and enjoys the rights. Licences must not be confused with leases or rental agreements as they are each different in their own aspects.

Once you have prepared the content of the deed, print it on stamp paper of required value. The licensor and the licensee must then place their signatures in the designated places along with the signatures of two (2) witnesses.

We have a lawyer verified, pre-drafted template using which you can create a Leave And Licence agreement in a matter of minutes. We also have the feature to print it on stamp paper and deliver it to an address of your choice! Do give it a shot.

Leave & Licence to the Landlord’s Rescue
What if an owner does not wish to transfer the interest of the property to his tenant? What if the tenant refuses to vacate? Indian law states that as long as a tenant is regular about paying rent and other charges, you cannot simply evict him for a period of 5 years, unless he/she commits something that breaches the agreement.

And so the Leave and Licence agreement comes into picture. This agreement, often used as a replacement for the good old rental agreement is now frequently used in cities like Mumbai. Leave and Licence agreement is a safer option for the landlord, say experts.
Unlike a rental agreement, the Leave and Licence agreement does not transfer the right of enjoyment of property to the tenant. It is a Licence given by the property owner termed as Licensor to the Licensee to use the property for a certain period of time under some terms and conditions, without creating any landlord-tenant relationship. Throughout the duration of the contract, the right of possession remains with the owner. By definition, its a document that provides someone with the right to do or continue to do something within an immovable property. No transfer of interest of property is created, it simply provides the right to enjoy a property for a short term while the landlord maintains full interest.

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.

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