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Create a Leave and Licence Agreement
What this document does
Grants the Licensee bare permission to use and occupy premises for a period, WITHOUT creating a tenancy or any interest in the property — juridical possession stays with the Licensor (Section 52, Indian Easements Act). The standard instrument for residential flats in Maharashtra, where registration is compulsory whatever the term (Section 55, Maharashtra Rent Control Act, 1999), and commonly chosen elsewhere to keep the occupant a licensee rather than a tenant. If the arrangement is meant to create a tenancy — an interest in the property, with a lessor-lessee relationship and tenancy-law consequences — use the Lease / Rental Agreement instead.
Terms
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Leave and Licence Agreement
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What else is in it — 15 clauses, 3 optional
- 01
Parties & Recitals
The preamble: date and place, the Licensor and Licensee with the recital wording their entityType selects, and the recitals stating that what follows is leave and licence only — no tenancy, no interest in the premises.
- 02
Definitions
The four defined terms every other clause relies on: Licensed Premises, Licence Fee, Licence Period, Security Deposit.
- 03
Licensed Premises
Identifies the premises use of which is licensed — address, furnishing, and any parking or floor particulars. The description is what the police intimation and any registration will carry, so it should match the property records.
- 04
Licence Period
When the licence begins and how long it runs. The period is stated as a fixed term; nothing in the clause creates a right of renewal — any extension needs a fresh written agreement, which keeps the licence a licence.
- 05
Licence Fee
The monthly compensation for use of the premises — deliberately called a licence fee, not rent, because rent presumes a tenancy. Carries the due day, payment mode, and any agreed escalation.
- 06
Security Deposit
The interest-free refundable deposit, the period within which it comes back after the premises are handed over, and what may lawfully be deducted from it.
- 07
Licence Only — No Tenancy or Interest
The clause that makes this instrument what it is: a bare licence under Section 52 of the Indian Easements Act, 1882. No tenancy, sub-tenancy or lease is created; no interest or estate in the premises passes; juridical possession remains with the Licensor; the permission is personal and non-transferable.
- 08
Use of the Premises
What the premises may be used for — reads the shared licenseUse — plus the conduct obligations: no nuisance, no unlawful use, no structural alterations, compliance with society and building rules, and any occupancy limit.
- 09
Licensor's Obligations
What the Licensor carries: property tax and outgoings of ownership, structural and major repairs, undisturbed use while the licence subsists and the Licensee performs, and any society permission needed for the arrangement.
- 10
Licensee's Obligations
What the Licensee carries: paying the fee and usage charges, keeping the premises in good condition, permitting inspection on notice, and returning the premises as received.
- 11
Termination & Revocation
How the licence ends before its date: termination for convenience on notice (outside any lock-in), revocation for unremedied breach, and automatic determination on expiry.
- 12
Vacation & Consequences of Overstay
What happens when the licence ends: immediate vacation and handover, removal of the Licensee's belongings, the Licensor's resumption of full use — possible without dispossession proceedings precisely because possession never passed — and per-day compensation for overstay.
- 13
Stamp Duty, Registration & Police Intimation
The compliance clause: stamp duty in every case; in Maharashtra, compulsory registration under Section 55 of the Maharashtra Rent Control Act, 1999 (the Licensor's duty, with penal consequences for default) and intimation of the Licensee's particulars to the police where required; elsewhere, registration as the parties elect and the general law requires.
- 14
Governing Law and Dispute Resolution
Applicable law, jurisdiction, and dispute resolution mechanism (courts or arbitration under Indian law).
- 15
General Provisions
The closing machinery: entire agreement, written amendments, notices, severability, no waiver by indulgence, counterparts, and the relationship of the parties confined to licensor and licensee.
After it is drafted
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