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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 is the difference between rental agreement with leave & license agreement?

- by Premraj, Davanagere

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 & license, you retain both the ownership and the possession, but merely permitting somebody to use property for certain specific purpose on certain condition. Here the possession continuous to be with the owner of the property, unlike in case of lease or rental agreement. The licensee will not get any tenancy rights. What is most important here is the intention of the parties and not the documents. The difference between lease/rent or leave and license is very thin.

In case of any dispute, the court will rely more on intention of the parties, than on what is exposed in the documents.

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

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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?