Specimen License Agreement explained: this guide covers what Specimen License Agreement means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Leave and License Agreement — Overview
A leave and license agreement grants the licensee permission to use the property without creating a tenancy or leasehold interest. Under Section 52 of the Indian Easements Act, 1882: a license is personal permission — revocable by the licensor. This is the most common arrangement for residential and commercial occupancy in India — preferred over lease because it avoids Rent Control Act protections for the occupant.
Specimen Leave and License Agreement
[11-month format — most common in India]
LEAVE AND LICENSE AGREEMENT
This Agreement is made on at
BETWEEN:
, (the "Licensor") AND , (the "Licensee")
TERMS
1. Licensed Premises: The Licensor grants the Licensee a license to use (the "Licensed Premises") for purposes.
2. Term: [11] months from to . Renewable by mutual consent for further periods of [11] months.
3. License Fee: Rs. per month, payable on or before the [5th] of each month by .
4. Escalation: % increase upon each renewal.
5. Security Deposit: Rs. (interest-free, refundable on vacating in good condition, after deducting unpaid fees and repair costs).
6. No Tenancy: "This Agreement is a License and does NOT create any tenancy, leasehold, or any interest in the Licensed Premises in favor of the Licensee."
7. Use: Exclusively for . No sub-licensing without consent.
8. Maintenance: Licensor: structural repairs, property tax. Licensee: daily maintenance, utilities, minor repairs, society maintenance.
9. Termination: (a) Expiry of term. (b) By either party with [1/2] months' notice. (c) By Licensor immediately for: non-payment (2 consecutive months), misuse, nuisance, illegal activity.
10. Handover: On termination: Licensee vacates within [30] days and delivers vacant possession. Deposit refunded within [30/60] days after deductions.
11. Governing Law: Laws of . Jurisdiction: courts at .
IN WITNESS WHEREOF the parties have executed this Agreement on .
LICENSOR: | LICENSEE: | WITNESSES: 1. ___ 2. ___
Registration
Maharashtra: MANDATORY registration of ALL leave and license agreements (Section 55, Maharashtra Rent Control Act, 1999) — regardless of duration. Other states: Registration mandatory only if term exceeds 12 months (Registration Act Section 17(d)). For 11-month agreements in most states: registration is optional but recommended. Stamp duty: varies by state — typically 0.25% of total license fees in Maharashtra; nominal in other states.
Disclaimer: This article is for informational purposes only and does not constitute legal or professional advice. While every effort has been made to ensure accuracy based on the latest laws and amendments, readers should consult a qualified professional before acting on any information provided. For expert assistance, contact us.