Leave and License Agreement

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What is

Leave and License Agreement

A license as per the Indian Easement Act 1882, is the right granted to a person to do an activity on the property of another person, which in the absence of a grant of such right would be illegal. 

A leave and license agreement is a legally binding agreement that allows the licensee to use the property of the licensor for conducting certain activities, however, it does not create any interest in the property being licensed. This Agreement is more like granting permission for carrying out certain activities on the property. 

The popularity of leave and license agreement has increased as opposed to a lease agreement in the light of control of rights favoring the licensor. 


1. What is the difference between a lease deed and a leave and license agreement?


Lease Deed

Leave and License Agreement

Creation of interest in the property

Creates interest in the property 

Does not create an interest in the property


Can be transferred or assigned to another person unless specifically prohibited

Cannot be transferred to another person.


Cannot be revoked unless in accordance with section 111 of the Transfer of Property Act. 

Can be revoked at any time by the licensor at his will

Regulated under the state rent control Act 

Is always regulated by the State rent control Act and hence falls under rent control

may or may not be regulated by the rent control act depending on the state.

Subrogation of rights

Allows the lessee to sublease the property

No sublicensing is allowed under such an agreement. 

2. What should be included in a leave and license agreement?

A leave and license agreement should contain the following:

  1. Activity for which the property is being licensed
  2. License fee
  3. Termination and revocation
  4. Restrictions on use
  5. Security deposit

3. Should the leave and license agreement be registered?

Leave and License Agreement is necessary to be registered under section 55(1) of the Maharashtra Rent Control Act 1999. Section 55(2) places this responsibility clearly on the landlord.