Leave and License Agreement for Housing Society
A leave and license agreement is a legal document under Section 52 of the Indian Easements Act, 1882, where a flat owner (licensor) permits another person (licensee) to temporarily occupy their housing society flat without transferring ownership or tenancy rights. It is revocable, typically for 11 months, and does not create a landlord-tenant relationship.
Why Is a Leave and License Agreement Always for 11 Months?
Agreements of 12 months or more must be compulsorily registered under the Registration Act, 1908, which attracts higher stamp duty. By keeping the agreement to 11 months, both parties save on registration costs while the agreement remains legally valid. After 11 months, a fresh agreement can be executed.
Difference Between Leave and License Agreement and Rental Agreement
You can check the below points to learn how an L&L Agreement differs from a rental agreement:
| Factor | Leave & License | Rent Agreement | For Your Society Flat |
|---|---|---|---|
| Ownership | Stays with licensor | Stays with owner | Society member retains flat ownership |
| Legal relationship | Licensor-licensee | Landlord-tenant | No tenancy rights created |
| Eviction | Easy, no court order needed | Requires court process | Society can ask licensee to vacate |
| Rent control laws | Not applicable | Applicable | Protects flat owner from rent freeze |
| Duration | Usually 11 months | 11 months to years | Fresh agreement after each term |
| Registration | Optional below 12 months | Mandatory above 12 months | Recommended even for 11 months |
Advantages of a Leave and License Agreement
Now that you know how an L&L agreement differentiates from a rental agreement, let’s delve into the benefits of this agreement:
- Flexibility: Both parties can customise this agreement to meet their specific needs.
- Ease of Eviction: It offers licensors more flexibility to terminate the agreement.
- Avoidance of Rent Control Laws: An L&L agreement can help both involved parties avoid the complexities of rent control laws.
- Tax Benefits: There might be tax benefits for both the licensor and licensee under specific circumstances.
Components of a Leave and License Agreement
You will find the following clauses inserted in a properly designed leave and license agreement:
- Involved Parties: The licensor’s and licensee’s name address, and contact details are included.
- Property Description: A detailed description of the property is provided along with the address, dimensions, and other features.
- License Period: It clearly mentions the start and end date of the agreement.
- License Fee: The total license that the licensee fee needs to pay is mentioned along with the inclusion of payment terms and escalation clauses.
- Security Deposit: A security deposit is paid by the licensee to the licensor. So the security deposit amount with conditions for its refund are mentioned.
- Use of Property: A licensee can only use a property as mentioned in the leave and license agreement. Therefore, every restriction and obligation is stated as well.
- Maintenance and Repairs: The responsibilities of the licensor and licensee regarding property maintenance are explained clearly in an L&L agreement.
- Dispute Resolution: Problems may arise between involved parties. Thus, mechanisms for resolving disputes such as arbitration or mediation are included in the agreement.
- Termination Clause: Conditions are explained briefly which can result in the termination of the agreement by either party.
- Governing Law: The law governing the agreement is stated for validation.
Leave and License Agreement Format for Housing Society
This Agreement is executed at [City] on this ___ day of , 20.
BETWEEN
[Licensor Full Name], residing at Flat No. ___, Wing ___, Floor ___, [Society Name] Co-operative Housing Society Ltd., Survey/CTS No. ___, [Area], [City] — hereinafter referred to as the LICENSOR.
AND
[Licensee Full Name], residing at [current address] — hereinafter referred to as the LICENSEE.
WHEREAS the Licensor is the lawful owner/allottee of Flat No. ___, Wing ___, Floor ___, admeasuring ___ sq. ft., situated at [Society Name] Co-operative Housing Society Ltd., and has obtained the necessary NOC from the society to grant leave and license.
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. License Period: From ___ to ___ (11 months)
2. License Fee: Rs. ___ per month, payable by the ___ of each month
3. Security Deposit: Rs. ___ (refundable, interest-free)
4. Use: Residential purpose only, for self and immediate family
5. Maintenance: Monthly charges of Rs. ___ to be paid by [Licensor/Licensee]
6. Nominal Membership: Licensee to apply for Form 29 within ___ days
7. Subletting: Not permitted without written consent of Licensor and Society
8. Termination: Either party may terminate with ___ days’ written notice
9. Governing Law: Courts at [City] shall have sole jurisdiction
LICENSOR: _____________ Date: _______
LICENSEE: _____________ Date: _______
Witness 1: _____________ Witness 2: _____________
Stamp Duty and Registration Charges
In Maharashtra, stamp duty on a leave and license agreement is 0.25% of the total license fee for the entire period, plus refundable deposit. Registration is done online via the MahaOnline portal or at the nearest Sub-Registrar’s office. Both licensor and licensee must be present with Aadhaar cards. The registered agreement serves as valid address proof for the licensee.
| State | Stamp Duty | Online Registration |
|---|---|---|
| Maharashtra | 0.25% of total licence fee | MahaOnline portal |
| Karnataka | Fixed ~Rs. 500 (up to 11 months) | Kaveri Online portal |
| Delhi | 2% of annual rent | DORIS portal |
| Telangana | 0.5% of total rent | Registration & Stamps Department |
Documents Required
Keep these ready before signing and registering:
- PAN card and Aadhaar of both parties
- Society share certificate or allotment letter (licensor)
- NOC from housing society
- Passport-size photographs of both parties
- Proof of ownership (index II or property card)
- Completed Form 29 for nominal membership application
Factors Affecting Online Rent Agreement Registration Charges
The process of registering a leave and license agreement online has gained popularity due to its convenience. The charges for online registration varies location to location and depend on the following factors:
- State-Specific Stamp Duty: Location primarily influences the registration cost.
- Agreement Value: The registration charge increases if the agreement value is higher.
- Property Location: Urban areas typically involve higher registration charges when compared to rural areas.
- Additional Services: Some online platforms offer additional services such as document verification, legal assistance, etc. These services may require you to pay extra charges.
Advantages of Leave and License Agreement Online
You will find several online platforms offering services for creating and registering leave and license agreements. Using these platforms can provide you with the following benefits:
- Convenience: Online platforms provide you with easy access to the agreement and simplify the document generation process.
- Time-Saving: Traditional methods are time-consuming. Thus, online L&L agreements save your time and ensure a hassle-free experience.
- Legal Compliance: Online platforms follow all the legal requirements ensuring zero error while preparing the agreement.
- Security: It provides both parties with safe and secure storage for the documents.
How NoBrokerHood Manages Your Leave and License Agreement
NoBrokerHood manages everything that a leave and license agreement commits to on paper – from society NOC approval and nominal membership onboarding to maintenance payments, visitor management, and amenity access – all within one platform used by the flat owner, licensee, and society committee together.
| L&L Agreement Clause | NoBrokerHood Feature |
|---|---|
| Society NOC for subletting | Committee approves and records NOC digitally |
| Nominal membership (Form 29) | Licensee added as tenant profile in the system |
| Maintenance charges | Online billing and payment tracked per flat |
| Amenity usage by licensee | Licensee books amenities via resident app |
| Parking slot assignment | Vehicle registered against allotted slot |
| Visitor management | Licensee manages gate entry via app |
| Domestic staff entry | Staff registered under licensed flat |
| Complaint and repairs | Licensee raises complaints directly in app |
| Vacation and handover | Flat profile updated when licensee exits |
All Solutions by NoBrokerHood:
Frequently Asked Questions
It is not mandatory to register an L&L agreement but you should consider doing so. This is because it provides you with legal protection and serves as proof of the agreement. The specific rules regarding registration differ in every state, so it is essential to know the local regulations.
The society cannot reject a valid L&L agreement, but it can refuse to grant NOC in cases where the proposed licensee has a criminal background or the flat has outstanding dues. Check your society’s bye-laws before proceeding.
An L&L agreement grants permission to occupy a property for a specific period without transferring ownership rights. While a rental agreement creates a landlord-tenant relationship with the tenant acquiring temporary property interest. When compared to rental agreements, L&L agreements offer more flexibility for the property owner.
Yes, rent can be increased during the term of an L&L agreement. However, terms for rent increases should be clearly outlined while developing the document.
The licensor has the right to take legal action in case a licensee fails to pay the rent as per the agreement. However, the actionable step depends on the terms of the agreement and applicable laws. So, it is essential to have clear provisions for rent default in the agreement.
Generally, subletting is not allowed under an L&L agreement unless explicitly permitted in the contract. Subletting without permission can lead to the termination of the agreement.
Yes. A registered leave and license agreement is accepted as valid address proof across India for bank accounts, Aadhaar update, and other KYC purposes.
The owner “leaves” the property for temporary use and “licenses” that use to another person. Since no tenancy is created, the owner retains full legal possession. The term comes directly from Section 52 of the Indian Easements Act, 1882.