logo logo

I have constructed a residential complex, which I would like to let out.  My son suggests having leave and license agreement, instead of lease or rental agreement.  Please inform what difference between rental agreement and leave is and license agreement.

- by Premraj, Davangere

In case of lease or rental agreements, you would be transferring possession of the property by retaining the ownership.  The lessee or tenant will be in the possession of the property on payment of lease amount or rent.  The tenant acquires tenancy rights.

In case of leave and license, you retain both the ownership and the possession, but merely permitting somebody to use property for certain specific purposes on certain condition.  Here the possession continues to be with the owner of the property, unlike in the case of lease or rental agreement.

The licensee will not get any tenancy right.  What is most important is the intention of parties and not the documents.  The difference between lease/rent or leave and license is very thin.

Earlier, stamp duty payable on leave and license was less, but recently many states have revised at par with the lease agreement.  In Karnataka leave and license agreement attracts ad volerm.


These are all the legal questions answered by Advocate S.Selvakumar in various magazines, in various occasion including realestate reporter monthly.


Q:- I have purchased a flat in a recently constructed apartment at Kanakapura Road. The area comes under the jurisdiction of BDA. All the owners have agreed to form an association. There is some doubt, where the association is to be registered, Registrar of Firms or Registrar of Co-operative Society. Some owners mention that the association has to be registered with the Sub-Registrar. We seek your guidance?

Q:- I have a small query regarding execution of sale deed. I had purchased a commercial office property in Ranchi city during 2002. Recently I observed that in the sale deed only the seller (builder) has signed the documents and I didn’t sign the deed. Further I checked with other people also who had purchased their properties during that time and didn’t find their signature either on the sale deed. In this case, is my sale deed still valid or do I need to get executed another sale deed with my signature on it.

Q:- My friend had purchased a house in Mysore.  It has only ground floor.  He has permitted me to construct another floor (Ist Floor) and to use it for my residence or to let out.  He assures me that I would be the Owner of that floor and is willing to execute any documents in this regard.  Please suggest the proper documents to be obtained.

Q:- Who can sign as witness to a document? What is meant by Identification of sale deed? 

Q:- Certain hidden facts like pending cases, prior agreements, government notification of the property cannot be traced easily by verification of the documents.  How can these hidden factors be uncovered, and what should a purchaser do to protect himself against these factors?