• In Bangalore from the landlord's perspective which is after Leave and License basis or Lease basis

I have a 3 bedroom apartment in Bangalore which I want to let out. Between Leave and License agreement and Lease agreement which is better? Alsso if either of these agreement is made for 11 months period, is it OK if the agreement is not registered.
Alao, could you give me a draft Leave and license agreement for 11 months and also a typical Lease agreement for 11 months.
Asked 4 years ago in Property Law
Religion: Hindu

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12 Answers

1. Offcourse leave and license is anytime more favourable

2. Lease is a much greater right

3. You can make the agreement for 11 months or more. Or you can make 12m agreement with a renewal clause

4. It's always better you get the agreement duly registered. It protects you against any adverse claims being raised by the licensee against you and your property

5. Unfortunately I regret my inability to provide you with a sample agreement. It's always good that you have the agreement drafted by a competent lawyer. Dont compromise on that. See the value of your property and the expense you will incur towards lawyers fee for drafting a well worded and clear leave and license agreement. Bear in mind that drafting is not a copy paste job and requires quite a lot of thinking and deliberation on the lawyer's part to safeguard and protect his client legally. So it's not an unnecessary expense but rather an essential expense.

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

In my humble opinion in fast growing city like Bangalore it is better to give flat on rent on basis of leave and license agreement as it gives limited rights for limited period so there are less issues in eviction , rent revision.

further under lease period is more and it often gives more rights and for longer period so eviction is difficult.

Yes it donot necessarily need registration you can get it notarised and a police verification.

http://www.realtyguru.co.in/pdf/SampleIndividualRentAgreement.pdf

https://efilingigr.maharashtra.gov.in/ereg/downloadstuff/LAndL.pdf

See every agreement has its own terms and condition so better get it drafted from an Advocate.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Hello,

You will have to contact some lawyer who can draft the same for you. It is advised that you enter into a 11 month lease agreement with the tenant.

The same is required to be notarized and not registered.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Dear Sir

Simple Rent Agreement is below with section 106 of Transfer of Property Act. If you I will prepare one for you.

======================================================================================

RENTAL AGREEMENT

This Rental Agreement is made and executed on this 17th Day of October Two Thousand Fifteen (17.10.2015) At Bangalore by and between:

Sri. V. SOMASHEKAR S/o late Venkatappa, aged about 65 years, residing at No. 26/1, Sanjeevappa Lane, Avenue Road Cross, Bangalore – 560002, hereinafter called the Lessor/Owner of the One part:

Smt. SMT. S. DEEPASHREE, aged about 33 years, W/o Mr. C. Kiran Kumar No. 2560, ‘Rangadhama’, 2nd Main Road, B.S.K. Second Stage, Bangalore – 560070. Hereinafter called as the Lessee/Tenant of the Other Part.

(Which expression shall include their respective successors, heirs, administrators and executors etc.,) and this agreement of rent witness as follows:

TERMS AND CONDITIONS:

1. That the owner shall let-out the tenant shall take on the schedule premises mentioned below for a period of 11 (Eleven) months, with basing amenities like Electricity terms and conditions hereunder contained.

2. That the tenant shall deep in refundable deposit with the owner a sum of Rs. 30,000/- (Rupees Thirty Thousand) only towards advance amount, by way of cash, which the owner both hereby admit acknowledge and confirm before the undersigned witnesses and rent payable to the schedule premises is Rs. 5,000/- (Rupees Five Thousand) only per month.

3. That it is further agreed declared and covenanted by the between the parties, that the House will be used and occupied by the following conditions:

(a) The tenant shall not make any material alternation to the schedule property unless approved and sanctioned by the lessor and in any such alternation. If permitted, shall be made by the tenant at there own costs, expenses and on such terms and conditions as may imposed by the owner such alternations and additions shall in all cases become the property of the landlord and the tenants shall not be entitled to any contribution or to any compensation on the account.

(b) The tenant has to pay the rent on or before 5th day of every month and 5% enhancement on existing rent if renewed.

(c) That the tenants shall use the property as there House and cannot transfer the tenancy or sub-let the whole or any portion to others without the permission of the owner. The tenant will not store any inflammable or combustible goods etc., The tenants shall pay the electric bills regularly without fail to the schedule premises. And water charges and water pumping motor charges in proportion and common maintenance charges etc.,

(d) It is nearby agreed that 60 days notice on either side is required for termination of the Rental Agreement.

(e) If the owner fail or neglects to pay the advance amount of herein before stated or otherwise commits any breaches of the convents, conditions and stipulations hereunder imposed or in adjudicated an insolvent, it shall be lawful, on the tenant to determine the rental agreement hereunder created by the appropriate notice and to use for recovery of money not with stand any waiver or conditions of the said breach.

(f) The tenant has inspection of the property and is fully satisfied about its conditions and internal arrangement and has hereafter freely and voluntarily agreed to the terms of tenancy hereunder provided and shall not hereafter make any grievance on any account whatsoever.

4. Save as aforesaid, the rights and obligations between the parties shall be governed by the law relating to statutory tenancy in force for the time being.

5. At the time of termination the tenants shall paid the schedule premises or painting charges of Rs. 5,000/- (Rupees Five Thousand) only (towards one month rent) shall be deducted from the Security deposit.

6. The tenancy shall be in force for a period for 11 (Eleven) months and the month of tenancy being the English Calendar month.

7. The owner has retained the original documents of this agreement and the tenant has retained the carbon or Xerox copy for his reference.

IN WITNESSES WHEREOF, both the owner and tenants has signed this Rental Agreement, before the undersigned witnesses:-

SCHEDULE

A portion of premises at ground floor measuring 22 feetX14 feet, consisting of single hall with electricity fittings i.e., tube lights and ceiling fans situated at No. 26/1, Sanjeevappa Lane, Avenue Road Cross, Bangalore – 560002.

WITNESSES:

1. (V. SOMASHEKAR),

Lessor/Owner.

2.

(S. DEEPASHREE),

Lessee/Tenant.

=================================================================================

Section 106 in The Transfer of Property Act, 1882

1[106. Duration of certain leases in absence of written contract or local usage.—

(1) In the absence of a contract or local law or usage to the contrary, a lease of immovable property for agricultural or manufacturing purposes shall be deemed to be a lease from year to year, terminable, on the part of either lessor or lessee, by six months' notice; and a lease of immovable property for any other purpose shall be deemed to be a lease from month to month, terminable, on the part of either lessor or lessee, by fifteen days' notice.

(2) Notwithstanding anything contained in any other law for the time being in force, the period mentioned in sub-section (1) shall commence from the date of receipt of notice.

(3) A notice under sub-section (1) shall not be deemed to be invalid merely because the period mentioned therein falls short of the period specified under that sub-section, where a suit or proceeding is filed after the expiry of the period mentioned in that sub-section.

(4) Every notice under sub-section (1) must be in writing, signed by or on behalf of the person giving it, and either be sent by post to the party who is intended to be bound by it or be tendered or delivered personally to such party, or to one of his family or servants at his residence, or (if such tender or delivery is not practicable) affixed to a conspicuous part of the property.]

=======================================================================================

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

You should enter into leave and licence agreement

2) it can be for more than 11 months

3) advisable to register leave and licence agreement

4) your Lawyer will draft agreement fir you

Ajay Sethi
Advocate, Mumbai
87955 Answers
6207 Consultations

5.0 on 5.0

Firstly, both the agreements hold their own value.

Secondly, it depends upon the requirement of the person from the agreement.

Thirdly, it should be 11 months, otherwise needs to be registered as per law.

Fourthly, yes, I can give you the draft, but before that need to know the exact needs of you from the contract to make it more effective in your favour only.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

Go ahead with a leave and license agreement.

If the term of this agreement is 11months of less, no need to get it registered.

We cannot share a draft here. Avail service of review a legal document through kaanoon.com.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

For draft agreements of your choice, you may have to engage the services of an advocate.

Under license agreements, the legal ownership and the possession of the property remain with the licensor.

Under a lease agreement, the tenant generally has exclusive possession with respect to the property.

In other words, a license does not create any interest in the premises in favor of the licensee

In the case of a lease agreement, if the agreement is for a period of less than 12 months, it does not have to be registered. However, a lease agreement for 12 months and beyond has to be compulsorily registered. In many states, a license agreement does not have to be registered.

If you have to choose between a leave and licence and lease agreement then for the shopping complexes or commercial establishments, the leave and license may be a better option than the lease agreement.

The licence fee would be lesser than the rental amount.

T Kalaiselvan
Advocate, Vellore
78113 Answers
1543 Consultations

5.0 on 5.0

1. Leave and license agreement is always preferable if the same is not considered to be a rent agreement .

2 In most states eave and license agreement is treated as rent agreement only and there is virtually no difference between the rent agreement and the leave and license agreement.

3. Sample agreements are not advisable. Rather get it drafted by an advocte.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

Dear Sir

Please go Leave and Licence Agreement. 11 months does not require registration.

Draft will be too long, we will draft based on your inputs of the property.

feel free to reach us

Shettar SS
Advocate, Bangalore
182 Answers
1 Consultation

4.4 on 5.0

Dear Client,

For 11 month agreement, no registration compulsory,

License agreement is beneficial to owner and can eviction tenancy on its expiry without must stress.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Dear Sir/Madam, as per your query, I would like to advice that you have to make better Lease Agreement, for 11 months lease period it will not compulsory registration it is optional. More than 11 months lease period compulsory registration.

C. V. Jadhav
Advocate, Bangalore
545 Answers
18 Consultations

4.7 on 5.0

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