Leave & Licence Agreement (Word draft)
The licence-based alternative to a rent agreement, used widely in Maharashtra and elsewhere, drafted so the distinction from a tenancy is preserved.
A leave and licence grants permission to occupy without creating a tenancy interest in the property. It is the standard residential arrangement in Maharashtra and is used elsewhere too, precisely because the legal position on recovering possession differs from a lease.
The distinction is not decorative. If the document reads like a lease — exclusive possession, tenancy language, a transferable interest — a court may treat it as one regardless of the title on the first page.
This draft keeps the licence language consistent throughout, which is the single thing most downloaded formats get wrong.
What is in the file
- Licence-consistent drafting throughout — licensor, licensee, compensation rather than rent, and no grant of exclusive possession
- Interest-free refundable security deposit with a defined return timeline
- Licence fee, escalation, term and renewal
- Revocation, lock-in and notice as mutual obligations
- Maintenance split, society compliance and access
- Inventory and joint inspection schedules
- Registration block, since several states require registration of leave and licence agreements
Keep the language consistent
Licensor and licensee, not landlord and tenant. Compensation or licence fee, not rent. Permission to use and occupy, not a demise of the premises. A document that mixes the two vocabularies is the easiest thing in the world for the other side to attack.
Do not grant exclusive possession in the drafting
A licence is permission to occupy alongside the licensor's retained control. The access clause here is deliberately drafted to preserve that, which is why it reads differently from the equivalent clause in a lease.
Register it where required
Several states require registration of leave and licence agreements, with a specific stamp duty formula based on the compensation and the deposit. Maharashtra in particular has a well-established online registration process.
Confirm the requirement and the formula locally — an unregistered agreement where registration was mandatory is a weak position to be in.
Questions
What is the difference between a rent agreement and a leave and licence?
A lease transfers an interest in the property to the tenant; a licence only grants permission to occupy. The practical consequence is in how possession is recovered at the end, which is why the distinction is worth preserving carefully in the drafting.
Is a leave and licence agreement safer for a landlord?
It is widely preferred by owners for that reason, but the label alone does not decide it — a court looks at the substance of the arrangement. Inconsistent drafting is what turns an intended licence into a tenancy.
Does it need to be registered?
In several states, yes, with duty calculated on a formula involving the compensation and the deposit. Confirm the position and the process locally before executing.
This is a working template, not legal, tax or financial advice. Requirements differ by state and by transaction — have a lawyer and a chartered accountant confirm anything that matters before you or a client rely on it.
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