Leave and Licence (Rent) Agreement Template (India) — Free Format
A leave and licence agreement lets a licensor allow a licensee to occupy residential premises for a fixed period and fee, without creating a tenancy interest in the property. It is the format most commonly used for 11-month rent agreements in India and must usually be stamped, and in some states registered.
Stamp, registration and e-sign at a glance
The three things to settle before anyone signs this agreement in India.
Payable under the stamp law of the state where it is signed; rates vary by state. Unstamped, it cannot be used as evidence until duty and penalty are paid. Duty on rent agreements is usually calculated on rent, deposit and term, so use the state calculator.
Check your state's rateRegistration is mandatory in some states regardless of term, and for any lease over one year. Check your state.
A leave and licence agreement is not a sale or conveyance of immovable property, so it is generally treated as capable of e-signature. Where the state requires registration, follow the state's e-registration process, which may involve Aadhaar-based authentication.
What cannot be e-signedWhat is a Rent Agreement?
A licence gives permission to use premises; a lease transfers an interest in them. A leave and licence agreement records the licence fee, security deposit, term, lock-in, maintenance, permitted use and handover. Whether it is truly a licence depends on substance, not title.
When to use it
- Renting out a flat or house to an individual or family
- Company-leased accommodation for employees
- Renewing an existing 11-month arrangement on fresh terms
Key clauses checklist
Make sure your draft covers each of these. Linked clauses open a sample wording with drafting tips.
- Licence fee and escalation Sample clause
- Security deposit and refund
- Lock-in and termination Sample clause
- Maintenance and repairs
- Stamp duty and registration Sample clause
- Notice Sample clause
Indian law notes
Why 11 months?
Under Section 17 of the Registration Act, 1908, leases for more than one year must be registered. Many people use 11-month terms to avoid registration, but some states — for example Maharashtra under Section 55 of its Rent Control Act, 1999 — require registration of leave and licence agreements of any duration.
Police verification
Many cities require landlords to submit tenant details for police verification. Check your local police rules.
Model Tenancy Act
The Model Tenancy Act, 2021 is a central model law that states may adopt with changes. Where a state has enacted it, rules on deposits and rent authorities may apply.
LEAVE AND LICENCE AGREEMENT This Leave and Licence Agreement is made at [City] on [Date] between: [Licensor Name], aged [Age], residing at [Address] (the "Licensor"); and [Licensee Name], aged [Age], residing at [Address] (the "Licensee"). WHEREAS the Licensor is the owner of the premises at [Full Address of Premises], admeasuring [Area] (the "Premises"), and has agreed to allow the Licensee to use the Premises on leave and licence basis on the terms below. 1. GRANT OF LICENCE The Licensor grants the Licensee a licence to occupy the Premises for residential use only, for [11] months from [Start Date] to [End Date]. This Agreement creates a licence only and no tenancy or interest in the Premises. 2. LICENCE FEE The Licensee shall pay a monthly licence fee of Rs. [Amount] in advance by the [5th] day of each month by bank transfer to the Licensor's account [details]. 3. SECURITY DEPOSIT The Licensee has paid an interest-free refundable security deposit of Rs. [Amount]. The Licensor shall refund it within [7] days of the Licensee handing over vacant possession, after deducting any unpaid dues and the cost of damage beyond normal wear and tear, with a written statement of deductions. 4. LOCK-IN AND TERMINATION Neither party may terminate during the first [3] months (lock-in). After that, either party may terminate by giving [1] month's written notice. 5. CHARGES Electricity, water, gas and internet charges are payable by the Licensee. Society maintenance and property tax are payable by the [Licensor]. 6. USE AND CARE The Licensee shall use the Premises carefully, follow society rules, not sublet or part with possession, not make structural changes, and permit the Licensor to inspect on reasonable notice. 7. REPAIRS Minor repairs are the Licensee's responsibility. Structural and major repairs are the Licensor's responsibility. 8. HANDOVER On expiry or termination the Licensee shall hand over vacant and peaceful possession with all fittings listed in Annexure A in good condition. 9. STAMP DUTY AND REGISTRATION Stamp duty and registration charges shall be borne [equally]. The parties shall register this Agreement where required by law. 10. GOVERNING LAW This Agreement is governed by the laws of India and the courts at [City] have jurisdiction. Annexure A – Fittings and fixtures: [list] Licensor: ____________ Licensee: ____________ Witness 1: Name, address, signature Witness 2: Name, address, signature
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How to execute it
From blank template to a signed, stamped and stored contract.
Check whether your state requires registration for leave and licence agreements.
Calculate stamp duty on rent, deposit and term with the state calculator.
Buy e-stamp paper or pay online duty, and fill in the details.
Sign in front of two witnesses, or complete e-registration where available.
Submit tenant details for police verification if your city requires it.
Frequently asked questions
Is an 11-month rent agreement valid without registration?
In many states an 11-month leave and licence agreement does not need registration, but some states, such as Maharashtra, require registration of every leave and licence agreement. Check your state.
What is the difference between a lease and leave and licence?
A lease transfers an interest in the property to the tenant; a licence only permits use. Licensees typically have fewer statutory protections, but courts look at the substance of the arrangement.
Can a rent agreement be signed online?
Yes, rent agreements can be signed with Aadhaar eSign once stamp duty is paid. Where registration is required, follow the state's registration process.
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Stop emailing Word files around
Turn this format into an approved template, collect approvals, buy e-stamp paper, send it for Aadhaar eSign and get reminded before it renews.