• Landlord tenant questions

I need to know legal answer of these questions before renting my properties.

1) Is there any other rental agreement in India rather than leave and license agreement and lease agreement? If yes what is that
2) Is registered leave and license agreement of duration 11 month covered by rent control laws in India which is highly in favour of tenant.
3)Is unregistered leave and license agreement of duration 11 month covered by rent control laws in India which is highly in favour of tenant.
4)Is registering leave and license agreement of duration 11 month gives advantage to licensor in court in eviction case.
5)Is unregistered leave and license agreement of duration 11 month considered valid in court.
6)Is it better for Licensor to register leave and license agreement of 11 month duration. I am thinking about safely ownership of property not about registration cost.
7)What percentage of registration cost has to be paid by licensor as per law.
8)It is easier to evict licensee in case of oral agreement or written leave and license agreement of 11 month duration with no renewal clause.
9)Is leave and license agreement of duration 12 month or more (must be registered) covered by rent control laws in India.
10) For home renting with leave and license agreement is it mandatory to write in clause that the home can not be used for any commercial purpose such as giving home tuition.
11) Is leave and license agreement valid for commercial renting
12) Can licensee on leave and license agreement give the rented home to another person on rent if nothing about this is written in clause. Is it necessary to write in clause than the licensee can not give it on rent to another person
13)Can the licensee legally keep the water tap open forever if licensor is paying water cost as per agreement
14)What is the maximum duration of leave and license agreement
15) Is signing leave and license agreement of duration more than 11 month give some unwanted advantage to licensee.
16) Even if leave and license agreement of 11 month duration have no renewal clause is it safe to keep signing fresh leave and license agreement of 11 month duration with the same licensee for more than 5 years with no one month gap.
17)May doing this give licensee the tenancy right
18)Is it safe to accept rent after license period is over till new agreement is made
19) If current agreement is expiring on month May can new agreement be made and registered in month March being effective from month June
20)Is it mandatory as per law to hire a lawyer for drafting a fresh leave and license agreement of 11 month duration for second time with minor change to the first time.
21)What is the average duration of court eviction case after expiry of leave and license agreement of 11 month duration with no renewal clause? Does it takes years similar to lease case
22)Is lease agreement of even less than 11 month covered by covered by rent control laws in India.
Thank you for giving legal answers.
Asked 7 years ago in Property Law
Religion: Hindu

2 answers received in 1 hour.

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12 Answers

Hi,

It is suggested that you are unnecessarily breaking your head. You may rent your property and cite suitable clauses as per your convenience. The registration may or may not be done. You may also renew and cancel the agreement as per your wish and the same may be endorsed in the agreement.  

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

It is safe to be in leave and license agreement. Its different from rental agreement. It never creates relationship of land lord and tenant. It is mandatory to register the same. Unregistered agreement is not admissible as evidence in court. 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Dear Sir,

The following information may kindly be read;

Leave and License agreement is a formal binding contract which lays down the length and scope of the License along with other terms of License. It is usually signed for a period of 11 months and can be renewed once the term expires depending upon the mutual understanding of the Licensor and Licensee.

A license is defined in section 52 of Indian Easements act 1882 where it states that the License is granted for the specified purpose and duration and anything done which is not mentioned in the agreement is termed as unlawful.

Major Differences between the License and Lease Agreement:

  1. a) In a Lease agreement the Lessee gets an exclusive possession of the premises leased out to him. The tendency of Lessee is to get the Lease executed for a longer period running in years because the terms of Lease cannot be altered by the Lessor in between.
  2. b) On the other hand, a License agreement can be renewed after every 11 months or so which is the standard term. In the License agreement, the legal possession remains with the Licensor which means there is no transfer of interest from the Licensor to Licensee.
  3. c) The Licensee doesn’t have the right to further sublicense whereas the Lessee has the right to further sublease it to the third party.
  4. d) The stamp duty payable in the Lease is generally more than the License.
  5. e) A Lease agreement can be made for a period less than 12 months and in that case, the registration is not compulsory. A Lease agreement of more than 12 months is required to be compulsorily registered along with the presence of two witnesses.

Elements of an ideal Leave and License Agreement:

Upon receiving an order, we regularly speak to our esteemed customers to understand their needs. Amongst various other customized elements that can be incorporated in a Leave and License Agreement, some most important and

compulsory elements are listed below: –

  1. a) Names and addresses of the parties – Full names and addresses of the parties is required to be mentioned in the agreement. Both current and permanent address details of the tenant are required.
  2. b) Rent and Tenure of the agreement – The rent to be paid by the Licensee to the Licensor along with the payment date and penalty details are mentioned under separate heads. The duration of the License agreement is usually for 11 months but it can be renewed after the expiry of the mentioned period.
  3. c) Yearly increase in rent – There is usually a clause in the License agreement regarding the yearly increase in the rent. It is usually between 5 to 10 % but it may vary depending on the mutual understanding between the Licensor and Licensee.
  4. d) Security amount– The Licensor usually requires the Licensee to pay few months’ security in advance. If the security amount is going to be deducted due to non-payment of rent, then the agreement must have a room for such provision.
  5. e) Carrying out repairs and maintenance in the premises – The premises let out on License have a clause regarding the permission to carry out any repairs or alteration. The costs of such repairs can either be adjusted from the security deposit or reimbursed from the Licensee, depending upon the understanding between the Licensor and Licensee.

Apart from that, the Licensor may also put a clause stating that the premises are to be maintained in a proper manner and penalize the Licensee if any furnishing or fixture is found out of order. The penalty could be credited from the security or it could be over and above the security amount depending on the loss incurred.

 

Netravathi Kalaskar
Advocate, Bengaluru
4951 Answers
27 Consultations

1) rental agreement can be entered into between landlord and tenant 

 

2) leave and licence agreement is coveted by rent act 

 

3) un registered leave and licence agreement is also covered 

 

4)registration is advisable of leave and licence agreement 

 

5) it is considered valid in court 

 

6) registration of leave and licence agreement is mandatory in Maharashtra 

 

7)licensor has to pay full registration charges 

 

8) easier to evict with written agreement 

 

9) 12 months agreement is covered by rent control act 

 

10) it should be mentioned not to be used for commercial purposes 

 

11) it is valid for commercial purposes 

 

12) licencee cannot give premises rent to another person 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1. You can make a rent agreement for time period on your mutual agreement with tenant.

2. Yes it is covered by rental laws and secondly the leave and license is balanced agreement does not only favour the tenant it favour the land lord too.

3. Yes.

4. Yes.

5 yes it is valid and take as evidence of transaction in court.

6 unregistered notarized agreement will do it's safe.

7. Registration fee as per state is applicable.

8. Written agreement is required.

9 Yes if it's more then 12 months it should he registered .

10. Yes the clause should he added.

11. Yes if it is rented for commercial property.

12. No licensee cannot further sublet till such authorisation is given.

13. The society won't allow that.

14. As per agreement the parties can mutually agree.

15. No it does not give advantage but it is better to sign for 11 months.

16. Yes it is safe.

17. No.you can terminate as per agreement.

18. No.take after new agreement is signed.

19. Yes.

20. You can draft same if you don't require a lawyers assistance.

21.It can take years as per procedure of court.

22. Yes. Renting of immovable property is covered by rent control.act of the state.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

1. eave and License agreement has no validity in West Bengal . Only the tenancy agreement or lease agreement is enforceable in Kolkata.

2. Does not make any change. It would be treated as tenancy agreement only.

3-6. same as above.

7. No registration of Leave and license agreement is possible in kolkata.

8.  No

9. It is governed by West Bengal Premises Tenancy Act.

10-16. No

17. he would be treated as monthly tenant only irrespective if calling him as ' licensee'.

18. Does not make any dofference

19. same as above

20. No

21. Cost varies with each advocate.

21. Yes   

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

The rental agreement is usually signed on payment of deposit for the rental property between the lessor and the lessee.
a rent agreement is governed by the Rent Control Act.
Registration of leave and license agreement for a term of less than 12 months is not compulsary. If the agreement is for 11 months, and the said 11 months is mentioned in the agreement, then you will have to pay stamp duty according to 11 months rent and deposit.

 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

23. Yes it is valid form of agreement.

24. If you are making a lease it can be made.of 5 years and registered.

25. Yes as on expiry of agreement the owner can seek possession .

26. See not mandatory to register a leave and license below 12 month after that if it is a lease.more then that you should register same.

27. Yes it can be clearly.mentioned that no renwal opportunity can be claimed by tenants.

28. Registered agreement is direct evidence further court in both cases take similar time.

29. No written agreement is must it shall be difficult to prove oral agreements.

30. No it shall remain leave and license only.

31. See it is safe to deposit in account , further for non renewal ans eviction you can give a notice one month prior to expiration date of leave and license or lease and further there is no automatic renewal on deposit of rent.

32. Yes it can take time

33. Yes you shall get the rent.

34. It shall be deposited with court and tou receive it after case is over.

35. Court can impose same.

36. Court case shall take same time.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

23. yes valid

24. 11 months

25. No

26. Yes. 11 months not mandatory. Still it should be registered for safety

27. Yes possible

28. Yes.

29. No. 

30. No

31. Yes it's safe. No automatic removal.

32. Yes.

33. Depends on order of Court.

34.  Depends on order of court.

35. Yes.

36. Yes

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

You can enter into lease agreement for period of a year 

 

2) short term lease agreement is safer for owner if he does not want to give his premises for long period of time 

 

3) mandatory to register lease and rental agreement 

 

4) renewal clause is not mandatory 

 

5) registration is mandatory for lease deed and rent agreement 

 

6) difficult to prove oral agreement . Registered agreement is best option 

 

7) you can insist that funds be deposited in your account by x date every month 

 

8) there is no automatic renewal of lease deed on expiry even if lesseee deposits money in your account 

 

9) refund of security deposit should be given at time of handing over possession by tenant or lessee 

 

10) disposal of case of eviction depends upon pendency of cases in trial court 

 

11) licencee has to pay costs plus penal rent for unauthorised possession 

 

12) always register your agreement 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1. Other than leave and license agreement, there are normal rental agreement and lease agreement.

2. Yes, 

3. Yes, 

4. There is no such thing.

5. Yes,

6. Not necessary, 

7. The licensee has to bear the charges for registration in full.

8. Yes,

9. Yes,

10. It depends.

11. It depends on the agreement,

12. No, he cannot sublet the premises,

13. Question is absurd,

14. It depends on the agreement,

15. There is no such thing,

16. There is no  legal infirmity in it if the periodical renewal is made regularly,

17. Nothing of that sort,

18. There is nothing wrong in it,

19. It is not valid,

20. Not necessary,

21. Two to three years or more,

22. Yes.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

23.  Yes valid,

24. Any duration you enter shall be considered as safe if you draft proper agreement,

25. There is nothing like that,

26. Beyond 12 months, the agreement may be registered to make it legally valid,

27. Yes,

28. It is not like that, it depends on how strongly you prosecute,

29. Oral agreement is not valid in law, you may have to prove the tenancy,

30. No it is not,

31. No, it is not automatic renewal, you can issue a legal notice to vacate.

32. It may even take three years.

33. Cannot say,

34. Yes, why not, 

35. No, 

36. yes.

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

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