Table of Contents
Need temporary accommodation or business space? A Leave and License Agreement could be your answer. But what is it, and how does it work? This guide demystifies leave and license agreements, covering key points, legal aspects, and why you might need one.
What is it?
Unlike a lease, a leave and license agreement grants temporary permission to use another’s property, typically for 11 months. Think of it as borrowing a room instead of renting an apartment.
Why use it?
- Owners intend to return: Perhaps they’re away temporarily or plan to use the space later.
- Short-term needs: Ideal for temporary stays or seasonal businesses.
- Commercial purposes: Use the space for your business without a full lease commitment.
Key elements:
- Parties involved: Details of both owner (licensor) and occupant (licensee).
- Property details: Clear description of the specific area granted access to.
- Duration: Fixed period of occupancy, usually 11 months.
- Fee: Agreed-upon payment for using the property.
- Responsibilities: Clarity on maintenance, utilities, and other obligations.
- Termination clause: Conditions for ending the agreement.
- Additional clauses: Security deposit, fixtures, subletting rights, etc.
Format and Documents:
- No specific format, but consulting a lawyer is highly recommended.
- ID proofs of both parties and property ownership proof for the licensor.
Procedure and Legalities:
- No set procedure, but legal review is crucial.
- Stamp paper/e-stamp paper of appropriate value required.
- Register the agreement if mandatory in your state.
- Governed by the Indian Easements Act, 1882.
Why hire a lawyer?
- Ensures legal compliance of the agreement.
- Protects your interests with proper clauses.
- Offers guidance and expertise in drafting.
Remember:
- Lawyer consultation is crucial for drafting and reviewing agreements.
- Ensure fairness and protection for both parties.
- Register if legally required in your state.
Bonus Tip: Explore sample Leave and License Agreement templates online (consult a lawyer before using).
TEXT version draft of Leave and License Agreement
*Disclaimer – This legal form and document is for reference only. Any document that you enter into, should be in consultation with an Advocate or a Solicitor. This website will not be responsible for any claim arising out of the use of the following document.
LEAVE AND LICENSE AGREEMENT
(To be executed while licencing premises)
This Agreement made at ——- this—– day of ——– between ———— (hereinafter referred to as ‘licensor’) of one part and ——— (hereinafter referred to as ‘licensee’) of the other part;
Whereas the licensor is seized and possessed of or otherwise entitled to the premises at ________________________________________(Full Address) (referred hereto as the ‘licensed premises’)
Whereas the licensor has requested the licensee to allow him to use and occupy the licensed premises as licensee and the licensor has agreed to allow the licensee to use the premises as bare licensee and to occupy the same without any right, title, interest or claim in the licensed premises or to any right or interest of the licensor in the licensed premises.
And whereas the licensor has sufficient interest, right or title in the licensed premises and to permit and allow the licensee to use and occupy the licensed premises as bare licensee in his personal capacity for use by him of the licensed premises for residential purposes.
And whereas the licensee is desirous of and represent that, the use and occupation of the licensed premises by him, shall be in his personal right and shall be under a mere permission as licensee by the licensor and shall not amount to claim any right.
NOW IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS LICENSOR AND LICENSEE HERETO AS FOLLOWS :
- This leave and license shall commence from the date of the Agreement and shall remain effective for a period ___________months/ years from this date.
- The licensor and licensee agree that the licensee shall use and occupy the premises under the permission of the licensor and shall not have or claim any tenancy or any other right, title, interest in the premises and shall always be construed as permissive user as license only.
- The licensee shall deposit Rs. ——– and keep deposited the said amount as security deposit /money advance / money to be advanced for the due observance and performance of this Agreement with and to the licensor.
- The licensee shall pay to the licensor the license fee of Rs. ___________(in words rupees________________) per month/per year, during the aforesaid period of Leave and License Agreement.
- The licensee during the subsistence of this present agreement shall pay all outgoing expenses, and charges including for repairs, electricity and water charges for electric and water consumption.
- The licensee shall cease to use and occupy the licensed premises and hand over licensed premises without demur, protest or objection to the licensor on expiry of the above period of _______month/years, from the date of executing this present Agreement for Leave and License.
- The licensee hereby agree and covenants with and to the licensor that the licensee under no circumstances whatsoever, transfer or assign in any manner, whatsoever benefit of this present to any other person and accepts and acknowledges that licensor has allowed licensee to use and occupy the licensed premises only and in no manner has granted any right interest in the licensed premises or any right to transfer or heritable right in respect of the licensed premises.
- The licensee shall use and occupy the licensed premises for purpose of —-_________only and in no manner cause nuisance, damage, disturbance, annoyance, inconvenience or interference to the occupiers of neighbouring premises.
- The licensee shall not use the licensed premises for any illegal or immoral purpose or carry out any activity or do anything, which constitute breach of any law.
- The licensee agrees and undertakes to the licensor to indemnify and to keep indemnified of any obligations, covenants, and conditions thereof.
- All notices, communications shall be sent on following addresses –
Licensor Licensee
………………………….. ……………………………….
- The licensee on termination of the agreement or in case of breach of the conditions hereinabove shall hand over peaceful possession of the licensed premises to the licensor, in normal wear and tear condition.
IN WITNESS WHEREOF THE PARTIES HAVE SUBSCRIBED, SIGNED AND HEREUNTO SET THEIR HANDS THE DAY AND YEAR FIRST HEREINABOVE WRITTEN.
LICENSOR LICENSEE
WITNESS
1.
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Word Format draft to download
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