Leave and License Agreement in India: Stamp Duty, Rules & Legal Guide (2025)
Are you moving into a new house or renting out your own property? In India’s rental market, the Leave and License Agreement is one of the most commonly used legal documents—especially in metropolitan cities.
This agreement defines the relationship between a property owner and a tenant while offering better protection than informal rental arrangements and more flexibility than a traditional lease agreement in India.
What Is a Leave and License Agreement?
A Leave and License Agreement is a legal contract between a property owner (the licensor) and an occupant (the licensee) that grants permission to use the property for residential or commercial purposes for a specific period.
Unlike a lease, this agreement does not transfer any interest in the property. It merely allows usage—making eviction and recovery easier for owners under Indian property law.
This structure is widely preferred in states like Maharashtra and Karnataka because it avoids long-term tenancy risks associated with rent control laws.
Leave and License Agreement vs Rental or Lease Agreement
The key legal difference is ownership interest. A lease creates an interest in the property, whereas a license only permits use.
Property owners often prefer Leave and License agreements over long-term rental arrangements due to easier termination and reduced litigation risk. For comparison, you may also review a standard rental agreement in India.
Key Clauses in a Leave and License Agreement
Duration and Renewal
Most Leave and License agreements are drafted for 11 months to avoid mandatory registration, though renewal clauses are commonly included.
Security Deposit
The agreement should clearly specify the deposit amount, refund timeline, and deductions for damages or unpaid dues.
Maintenance Obligations
Routine maintenance is usually the responsibility of the licensee, while structural repairs remain with the licensor.
Termination Clause
Notice periods typically range from 30 to 60 days. Clear exit clauses reduce disputes related to early termination.
Is an 11-Month Leave and License Agreement Legal?
Yes. An 11-month Leave and License Agreement is legally valid. While registration is not mandatory for agreements under 12 months, payment of stamp duty is compulsory.
However, registering the agreement strengthens enforceability and is strongly recommended—especially in disputes involving eviction or deposit recovery.
Stamp Duty on Leave and License Agreement in India
Stamp duty varies by state. For example, in Maharashtra, stamp duty is typically calculated as a percentage of total rent plus deposit.
Failure to pay stamp duty can render the agreement inadmissible as evidence in court, similar to other property contracts such as a sale deed or gift deed.
Online Registration Process
Most states now support online registration:
- Maharashtra: IGR Maharashtra
- Karnataka: KAVERI Portal
- Delhi: Delhi e-Registration
Online registration simplifies documentation and provides digital records for future reference.
Common Mistakes to Avoid
- Not registering the agreement despite long occupancy
- Vague termination or lock-in clauses
- No property condition report at move-in
- Ignoring society bylaws and rules
- Side verbal agreements not reflected in writing
How GetLawyer Helps With Leave and License Agreements
Drafting property agreements without legal guidance often leads to disputes over deposits, termination, and access rights.
GetLawyer provides online legal services for property owners and tenants, including:
- Professionally drafted Leave and License Agreements
- Stamp duty and registration support
- Legal review of existing agreements
- Dispute resolution assistance
If you’re unsure whether a Leave and License or lease structure is right for you, our legal experts can guide you.
Book a consultation and get your agreement drafted or reviewed by a legal professional.
Conclusion
A Leave and License Agreement is more than a formality—it is a legal safeguard that protects both licensors and licensees.
With proper drafting, stamp duty compliance, and registration, you can avoid disputes and ensure peaceful occupancy. Investing in legal clarity today prevents costly litigation tomorrow.