The agreement of leave and license is a legal document that is commonly used in India when renting out a property. It is a crucial agreement that outlines the terms and conditions of the lease between the landlord and the tenant. In this article, we will discuss what this agreement entails, how it works, and everything in between.
What Is a Leave and License Agreement?
In India, the leave and license agreement is a legally binding contract between the property owner (the licensor) and the tenant (the licensee). This agreement allows the tenant to occupy the property for a specified period, usually up to 11 months, in exchange for payment of rent. The agreement grants the tenant the right to use and occupy the property for the agreed-upon time and purpose.
How Does It Work?
The agreement of leave and license begins with the licensor preparing a draft agreement that outlines the terms and conditions of the lease. Once the tenant agrees to the terms and signs the agreement, the licensor provides possession of the property to the licensee. The licensee is then obligated to pay the rent on the agreed-upon date, maintain the property according to the terms of the agreement, and vacate the property at the end of the lease period.
The agreement of leave and license is typically used in situations where the tenant needs temporary accommodation, such as students, professionals, or people on short-term assignments. Since the duration of the agreement is limited, the tenant is not given any ownership rights to the property. However, the agreement can be renewed if both parties agree to it.
What Does Leave and License Agreement Cover?
The agreement of leave and license covers several aspects, including:
1. Rent: The agreement outlines the rent that the tenant must pay to the licensor and when it is due.
2. Security Deposit: It also specifies the amount of security deposit that the licensee must pay before occupying the property.
3. Duration: The agreement defines the duration for which the tenant is allowed to occupy the property.
4. Maintenance: The agreement outlines the responsibilities of the licensee in maintaining the property, such as payment of utility bills, repair costs, and cleaning the property.
5. Termination: The agreement outlines the terms and conditions for termination of the agreement by either party.
6. Renewal: The agreement also specifies the conditions for renewing the agreement for another term.
Conclusion
The agreement of leave and license is an important legal document that protects both the licensor and licensee`s interests. It is essential to read and understand the terms and conditions of the agreement before signing it. The agreement ensures a smooth relationship between the two parties and helps avoid any potential legal disputes. Therefore, it is crucial to have this agreement in place when renting out your property in India.