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  7. a specimen of leave and license agreement

A Specimen of Leave and License Agreement

Counselvise
Published on 02/01/2025
₹ 500/-
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A Specimen of Leave and License Agreement

Counselvise
Other Legal Agreements / Miscellaneous

Template Description

This "Leave and License Agreement" template is a legally binding document that grants permission from the owner (licensor) to another party (licensee) to occupy and use a property for a specified period. The template is a 4-page MS Word document and is ideal for landlords, property managers, and legal professionals looking to formalize such arrangements. Unlike a lease, this agreement does not transfer any interest in the property to the licensee but only provides the right to occupy the premises temporarily.

 

Understanding a Leave and License Agreement

 

Key Terminologies:


  1. Leave and License: A legal arrangement under which a property owner (licensor) permits another party (licensee) to use and occupy the property for a temporary period without transferring any interest or ownership rights.
  2. Licensor: The individual or entity that owns the property and grants permission to the licensee to occupy the premises.
  3. Licensee: The individual or entity that receives permission from the licensor to occupy the premises temporarily.


Distinction Between Lease and License:


A fundamental distinction between a lease and a license is that a lease involves the transfer of an interest in the property, giving the tenant legal possession, while a license merely grants permission to occupy without transferring any interest.

 

Why Choose Leave and License Over Lease?


Many property owners prefer Leave and License Agreements over traditional leases or tenancy agreements because these agreements offer more flexibility and protection to the licensor. The eviction process under a lease or tenancy agreement can be lengthy and legally complex, often favouring the tenant. In contrast, a Leave and License Agreement can be terminated more easily, and the licensor retains judicial possession of the property.

 

Procedure for Using the Leave and License Template:


  • Drafting the Agreement: The agreement should be prepared on non-judicial stamp paper as required by the relevant state laws and it should Clearly specify the names, addresses, and other details of the licensor and licensee, along with the terms of occupancy, including the duration and any fees or deposits.


  • Execution of the Agreement: licensor, licensee and witnesses must sign the agreement to make it legally enforceable.


  • Possession and Termination: The licensor is deemed to remain in legal possession of the property, while the licensee has constructive possession. The agreement can be terminated as per the terms outlined, allowing the licensor to reclaim the property easily.


  • Municipal and Tax Considerations: The licensor is responsible for paying any applicable municipal taxes and income tax on the rental income. Some municipalities may also charge a notional interest on security deposits.


Conclusion

A "Leave and License Agreement" is a flexible and legally secure option for property owners who wish to allow temporary occupancy without transferring any interest in the property. This template provides a clear and straightforward format to ensure that both the licensor and licensee are legally protected, making it an ideal choice for residential and commercial property arrangements.