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Leave and License Agreement/ Lease- Commercial High Value

{An agreement to record terms of permission granted to a tenant to use the property}

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A leave and license agreement is an instrument/agreement allowing a person to temporarily occupy and use immovable property for carrying on business activities or for residential purposes. In leave and license agreement, there is no transfer of interest in property from owner to the tenant as in case of a Lease Agreement. This Agreement makes eviction easier and provides landlord with more power and control.

 

 

Parties in a Leave and License Agreement  

Licensor- who gives the License (owner of the property)

Licensee- to whom license is granted

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Features of a Leave and License Agreement

  • a permission to use the premises
  • no tenancy rights are created
  • does not create an interest in property in favour of tenant
  • non transferable
  • usually executed for 11 months
  • higher stamp duty is payable
  • licensor has more powers and control

Difference between Lease Agreement & Leave and License Agreement

 

Points of difference

Lease

Leave and License

Possession of Property

exclusive possession of property with the tenant

only a permission to tenant to occupy the property

Interest

creates an interest in property in favour of the tenant

 

no interest in property is created in favour of the tenant

Transferable

transferable

non-transferable

Heritable Rights

creates heritable rights

does not create any heritable rights

Cancellation

non-revocable by landlord

revocable by owner

 

Note :-

  • Draft template will be provided in soft copy
  • Extra charges will apply for customized document