Hi everyone, Giving out a plot of land to someone who will open a small cafe. We are only giving it to them for a period of 1 year for now. Would a lease agreement or a leave & license agreement be better in this case? Many thanks, Ayush
License agreements are terminable, whereas lease agreements are generally not. The amount payable towards stamp duty is more for a lease agreement as compared to a leave and license agreement.
I would suggest you to go for leave and licence agreement.
IF you will execute for 1 year, registration of deed is mandatory, so execute for 11 months only. Later can be extended.
Lease deed provides exclusive right to possession of premises for the payment of rent whereas
Leave & License provides right to occupy premises only in return for the payment and owner can enter in the premises any time.
1. Execute a Leave & License agreement, duly Stamp Duty Paid and Registered, with strategic clauses for Rent & Vacating property after expire of L&L agreement.
Leave and license will be better
leave and licence agreement is better
2) it should be duly stamped and registered
Leave and license agreement for 11 months 29 days shall be better option in this case.
Leave and license agreement would be better as it does not transfer any right to the property.
- A Lease Agreement cause a transfer of interest from the owner to the tenant,
- A Leave & License Agreement ensures that there is no transfer of interest from the Licensor to the Licensee. It is only a license to occupy and use the premises in the mentioned duration on mutually agreed terms.
- Hence, the best option is leave and licence agreement.
in my opinion leave & license agreement is better.
You should make leave and licence agreement it is better for small term tenancy rights.
A rental / lease agreement cause a transfer of interest from the owner to the tenant, or lessor to the lessee. ... A 'Leave & License' ensures that there is no transfer of interest from the Licensor to the Licensee. It is License to occupy and use the premises in the mentioned duration on mutually agreed terms.
Therefore it would be better that you let it out on leave and license itself.
