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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.

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

QUESTIONS

Q:- If there are both agreements to Sell and Sale deed with regard to a common property and sale deed has been executed, then which of the two, i.e. sale deed or agreement to sell should be given weight age?

Q:- I am resident of Bangalore and I have few questions on real estate in Bangalore. I heard there is a GO passed by Karnataka government, banning all the registrations process by CMC. Is this GO applicable only in the city of Bangalore or whole of Karnataka? Has this been lifted or still in place? Do I have to pay VAT and Service Tax if I book apartment from a builder? The apartment builder told me that there will be a construction agreement and a land agreement. Since, the construction agreement more is like a service rendered by builder to the buyer, can I just buy Service tax on the construction cost?

Q:- Is it possible to execute a sale deed on the basis of a Power of Attorney executed in foreign country before the India Embassy and duly adjudicated by the Collector of Stamps in India? 

Q:- I purchased a property and the vendor has executed the Sale Deed in favour of me. Kindly enlighten me whether I have to preserve the agreement entered with the Vendor as a document along with the sale deed?

Q:- I have entered into an agreement to purchase a property at Hongasandra which falls under the area of Bommasandra CMC.  The party is having CMC Katha, tax paid receipts. I have paid 50% of the sale price. Now, the Sub-registrar has refused to register the property. My agreement is going to lapse within one month.  What should I do in this situation?