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Leave and License
What is a Leave and License Agreement?
A Leave and Licence Agreement by which rights to use and occupy a property are temporarily transferred. The property owner i.e. ‘Licensor,’ grants permission to another party i.e. ‘Licencee,’ to occupy the premises for a specified period.
Also, there is a clear difference between a lease and a leave and Licence agreement. Unlike traditional leases, the latter does not transfer ownership or create a landlord-tenant relationship. Instead, it confers a limited right to use the property. This distinction is crucial, as it allows for easy eviction in case of disputes.
What are the essential clauses of a Leave and License Agreement?
- Property details, including area, address, furniture etc. if provided are mentioned in the agreement.
- Duration for use, minimum lock in period, its validity and provision for its renewal etc.
- Rent, maintenance, security deposit to be paid by the Licensee and the due date. Other important provisions, such as interest and penalty on delayed payment. It should also be mentioned that the details of payment to be made by the Licensee on a monthly basis, such as electricity charges, water bills or any other utility costs.