• Leave and license agreement instead of lease agreement

Is it advisable(any legal implications?)to sign a leave and license agreement under 12 months with the same tenant for the same property in Delhi after having signed a lease agreement with the same tenant for two years with extensions of two years at a time?
Asked 10 months ago in Property Law
Religion: Hindu

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14 Answers

Keep a gap of a week or so then enter into leave and licence agreement for 12 months 

 

register the leave and licence agreement 

Ajay Sethi
Advocate, Mumbai
94932 Answers
7574 Consultations

5.0 on 5.0

As such there is no legal implications if other formalities are completed. 

Siddharth Srivastava
Advocate, Delhi
1252 Answers

5.0 on 5.0

The tenant may be advised to enter into the leave and license agreement for a period of 12 months instead of renewing the 2 years lease agreement, it is your own decision especially after the expiration of the current lease agreement

T Kalaiselvan
Advocate, Vellore
85133 Answers
2216 Consultations

5.0 on 5.0

If the earlier lease agreement is expired then you can execute fresh leave and license agreements 

Prashant Nayak
Advocate, Mumbai
32077 Answers
183 Consultations

4.1 on 5.0

Dear Client,

The tenant might consider opting for a 12-month leave and license agreement instead of renewing the existing 2-year lease agreement. This decision is entirely up to the tenant, particularly once the current lease agreement has expired.

 

 

Anik Miu
Advocate, Bangalore
9020 Answers
110 Consultations

4.7 on 5.0

No repercussion. Execute leave and license agreement.

Yogendra Singh Rajawat
Advocate, Jaipur
22671 Answers
31 Consultations

4.4 on 5.0

Dear sir,

A lease creates an interest in the property unlike a leave and license agreement.     Leave and license agreement.    gives only a right to use the property in a particular way or under certain terms, while it remains in the posession and control of the owner thereof, it will be a license. Basically, no interest in the property is transferred to the tenant.  “Te legal possession, thereof, continues to be with the owner of the property but the licensee is permitted to make use of the premises for a particular purpose.  It does not create in his favour any estate or interest in the property.

A lease grants a tenant with exclusive possession while a leave and licence agreement only grants permission to occupy the property.  Licences are revocable; leases are not.  Leases are transferable while licences are not. A lease creates inheritable rights unlike licences.

Once there is a lease agreement there exist no use of executing a leave and licence agreement. Go for leave and licence agreement and cancel the lease agreement.  Thank you

Ajeesh Kalathil Gopi
Advocate, New Delhi
10 Answers

Not rated

- As per law , the registration is mandatory if the lease agreement is executed for more than 11 months.

- Hence, you can opt for a leave and license agreement under 12 months , 

- Further, if you execute a leave and license agreement , then at the termination or the end of the license period , the tenant will have to vacate the premises , as this agreement doesn’t come under the Rent Control Act.

Mohammed Shahzad
Advocate, Delhi
13360 Answers
199 Consultations

5.0 on 5.0

The lease agreement is different to that of the leave and license agreement.

In order to enter into a fresh leave and license agreement the earlier lease agreement has to be terminated.

Thus the leave and license agreement becomes a fresh one.

T Kalaiselvan
Advocate, Vellore
85133 Answers
2216 Consultations

5.0 on 5.0

There should not be a continuous period of more than 11 months for unregistered leave and license as well as lease agreement. 

Dalbir Bharti
Advocate, Gurgaon
41 Answers

Not rated

There is no legal bar to execution of leave and licence agreement on expiry of lease deed 

Ajay Sethi
Advocate, Mumbai
94932 Answers
7574 Consultations

5.0 on 5.0

- The agreement should be for a fixed period and not for the continuation , and further in both the cases registration is mandatory if time period is more than 11 months. 

Mohammed Shahzad
Advocate, Delhi
13360 Answers
199 Consultations

5.0 on 5.0

The execution of a leave and licence agreement upon the expiration of the lease deed is legally permissible.

 

Anik Miu
Advocate, Bangalore
9020 Answers
110 Consultations

4.7 on 5.0

Yes in Maharashtra it’s mandatory to register but in Delhi specific provision is needed

Prashant Nayak
Advocate, Mumbai
32077 Answers
183 Consultations

4.1 on 5.0

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