Leave and Licence Agreement: Legal Definition , Format & Online Process

What is a Leave and Licence Agreement and Why is it Important?

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What is a Leave and Licence Agreement and Why is it Important?

2 min 01 Apr 2025

Highlights:

What is a Leave and Licence Agreement?
Advantages of a Leave and Licence Agreement
Documents Needed to Register a Leave and Licence Agreement
How to Register a Leave and Licence Agreement Online

When it comes to renting out property in India, landlords often have two options — a rental agreement or a leave and licence agreement. A leave and licence agreement allows property owners to grant another party the right to use their premises without transferring ownership or any tenancy rights.

This article explains leave and licence agreement meaning, its legal basis, and the process for registering the agreement online.

What is a Leave and Licence Agreement?

A leave and licence agreement is a legally binding document where the property owner (licensor) permits another party (licensee) to occupy the premises for a specified period, without creating any ownership interest or tenancy rights.

Advantages of a Leave and Licence Agreement

Leave and licence agreement provides following benefits:

Flexibility for Landlords: The landlord can reclaim the property easily after the agreed period without the complexities associated with lease terminations
No Transfer of Interest: Since it does not involve transferring possession, it reduces the chances of legal disputes over ownership or tenancy
Legally Recognised: Provides legal documentation for both parties, making the arrangement enforceable in court if required

Documents Needed to Register a Leave and Licence Agreement

To register a leave and licence agreement online, the following documents are typically required:

Aadhaar Card or other valid ID proof of both parties
PAN Card of the property owner
Passport-size photographs of both parties
Proof of ownership of the property (such as a sale deed)
Electricity or maintenance bill as address proof
Digital signatures (if registering online)

How to Register a Leave and Licence Agreement Online

Several states offer the facility to register a leave and licence agreement online, for instance, Maharashtra through the IGR (Inspector General of Registration) portal. Here is a process to register online:

Visit the state’s official registration portal (e.g., e-Registration in Maharashtra).
Log in or create a new account.
Fill in the agreement details — licensor and licensee names, property address, duration, and agreed rent.
Upload the required documents.
Schedule biometric verification, if applicable.
Pay the registration fee and stamp duty online.
Once verified, the digitally signed agreement can be downloaded.

A leave and licence agreement a legal document that allows temporary property access without transferring any ownership or tenancy rights. For property owners seeking a Home Loan, having a properly registered leave and license agreement online can also help validate ongoing rental income during the loan application process.

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