Also called: Leave and license, L&L agreement, Licence agreement
An agreement that lets someone occupy a property for a period without creating a tenancy. It is the standard form of residential rental in Maharashtra, where such agreements must be registered.
How it works and what to check
A licence is a permission to use, not a transfer of any interest in the property. Owners prefer it because it gives the occupant fewer protections than a tenancy under rent control laws.
In Maharashtra, leave and licence agreements must be registered, and online e-registration is available. Elsewhere the label alone does not decide the matter: what the agreement actually gives decides whether it is a lease or a licence.
Common questions
Is leave and licence registration compulsory in Maharashtra?
Yes. Maharashtra requires leave and licence agreements to be registered.
What is the difference between a lease and a licence?
A lease transfers an interest in the property to the tenant; a licence only permits occupation and creates no interest.