A rent agreement is a lease: it gives the tenant an interest in the property for the term. A leave and licence agreement only permits the licensee to use the property and gives no interest in it, which makes eviction simpler. Leave and licence is the standard form in Maharashtra, where it must be registered.
Side by side
Factor
Rent agreement
Leave and licence
Legal nature
Lease under the Transfer of Property Act
Licence under the Indian Easements Act
Interest in property
Yes, for the term
No, only permission to use
Where common
Most states
Maharashtra, especially Mumbai and Pune
Registration
Compulsory for terms over one year; 11-month leases are common
Compulsory in Maharashtra for any term
Rent control laws
May apply, depending on the state's law
Designed to sit outside tenancy protection
Recovering possession
Through the state's rent or civil process
Usually quicker after the licence ends
Stamp duty
Set by the state
Set by the state
When Rent agreement matters
Outside Maharashtra, a rent (lease) agreement is the usual document; read the clauses on lock-in, notice and deposit.
When Leave and licence matters
In Maharashtra, expect a registered leave and licence agreement; online registration is available.
In more detail
The name on the document does not decide its nature. Courts look at the substance: exclusive possession, rent and a fixed term can make a so-called licence a lease, and vice versa.
The Maharashtra Rent Control Act, 1999 requires leave and licence agreements to be in writing and registered. Elsewhere, a lease of more than one year must be registered; that is why 11-month agreements are common.
The Model Tenancy Act, 2021 is a central model law; it applies only where a state adopts it, and its terms then depend on the state's version.
It gives the licensee no interest in the property, which usually makes recovering possession simpler. In Maharashtra it is the standard form.
Why are rent agreements for 11 months?
A lease of more than one year must be registered. An 11-month term avoids compulsory registration in many states, though registration is still possible.
Does a leave and licence need registration in Maharashtra?
Yes. The Maharashtra Rent Control Act requires it to be in writing and registered, whatever the term.
Sources
Transfer of Property Act, 1882, sections 105 and 107
Indian Easements Act, 1882, section 52
Maharashtra Rent Control Act, 1999, section 55
Registration Act, 1908, section 17
A plain-language summary, not legal or tax advice. Rules set by states differ and change; check the current position for your property.