Know the difference between a rental agreement and a leave and license agreement, what it contains, and how you can go about getting one registered for a hassle-free tenancy.

You might have often heard the term leave and license agreement while looking up information on renting a house. While it is an important document, it is often used interchangeably with the term rental agreement. In terms of an understanding between the owner of the property and the tenant, the leave and license agreement grants the tenant permission to temporarily occupy and use the property for commercial or residential purposes, in return for a fixed sum of money.

Why is a leave and license agreement needed?

Leave and license agreements are important in securing the rights of both the landlord and the tenant. The two parties can meet face-to-face and agree on a variety of conditions for the tenancy period. However, it is vital that these conditions be put down on legal stamp paper and legally registered by government authorities – the Sub-Registrar’s Office – to protect the interests of both parties. In this way, when either party wants to register a grievance, it can be resolved in a court of law with valid proof.

Ensuring a leave and license agreement is made and registered prevents the transfer of interest of the property from the licensor (the owner) to the licensee (the tenant). It remains an agreement of temporary occupancy alone.

What should it contain?

The leave and license agreement or rental agreement can be made for a minimum of 11 months to a maximum of 60 months. After this period, a new leave and license agreement will have to be made, either for the same tenant if they wish to continue, or for a new one.

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The rental agreement or leave and license agreement can host a range of conditions agreed upon by both the owner and tenant. First and foremost is the amount of rent and security deposit. The owner of the property can also specify all the amenities he/she will provide to the tenant, such as fixtures, furnishings, appliances and society maintenance, etc. Furthermore, the owner can stipulate certain conditions about the upkeep of the property and routine inspections if desired. The tenant can also add clauses to the agreement, such as landlord limits to tenant’s privacy, demand for repairs and control over rent increment.

The lock-in period

An important clause in the rental agreement is that for the lock-in period. This benefits both parties – neither can the tenant vacate the premises until the completion of the lock-in period, nor can the owner ask them to leave prematurely. A violation of this lock-in period results in the demand for reimbursement of losses incurred by the grievous party; this is why this period is considered sacred and is usually not tampered with. Typically, the lock-in period lasts for the entire tenure of the leave and license agreement – from 11 months up to 60 months.

What is the format?

Since there are many legal clauses to be included in the rental agreement, the government of India specifies a format to be followed while drafting it. The easiest way to create a leave and license agreement is to opt for a last mile service provider who can not only draft the entire rent agreement but also help you get it registered, with doorstep service to complete the necessary formalities.

Anulom’s team of executives help owners and tenants through the entire online rent agreement registration process – right from collecting data to draft the agreement to setting up appointments for doorstep visits to conduct biometric verification. The entire process takes only 3-5 days, ending with a copy of your registered rent agreement sent to your email ID.

Log on to www.anulom.com or call +91 9595380945 to see how easy and hassle-free the process to get your leave and license agreement registered is.

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