Leave and Licence Agreement (11-Month Notarized)

A Leave and Licence Agreement (11-Month Notarized) in India governs the use of the rights granted, fixing the royalties payable and the conditions attached to the licence.

The Maharashtra Rent Control Act 1999 (Section 24) expressly distinguishes a Leave and Licence from a tenancy and provides a efficient procedure under Section 24(1) for the licensor to recover possession of the property from a licensee who refuses to vacate after the licence period expires — through an application to the Executive Magistrate or Competent Authority rather than a full civil suit. This procedural advantage makes the Leave and Licence the preferred arrangement for Mumbai, Pune, Nagpur, and all other Maharashtra cities. Similar provisions exist under the Delhi Rent Control Act 1958 and the Karnataka Rent Act 1999 for their respective jurisdictions.

Section 52 of the Indian Easements Act 1882 defines a licence as a right granted by one person (the licensor/grantor) to another person (the licensee/grantee) to do or continue to do something in or upon the immovable property of the grantor that would otherwise be unlawful — and which does not amount to an easement, servitude, or interest in the property. Because no interest passes to the licensee, a Leave and Licence falls outside the Transfer of Property Act 1882 (Sections 105–117 of which govern leases) and the licensee acquires no right to exclusive possession recognised by law.

The 11-month Leave and Licence is typically notarized before a Notary Public under the Notaries Act 1952 using non-judicial stamp paper of the appropriate denomination under the applicable State Stamp Act. In Maharashtra, the Maharashtra Rent Control Act 1999 (Section 55) requires registration of Leave and Licence agreements exceeding one month's term — making Sub-Registrar registration mandatory for Maharashtra agreements even at the 11-month term. Stamp duty on Maharashtra Leave and Licence agreements is calculated on 10% of the security deposit plus the average annual licence fee, at a rate significantly lower than sale deed stamp duty.

The licence fee (rent) is payable monthly in advance or as agreed, and the agreement specifies a refundable security deposit — typically two to six months' licence fee in Mumbai and Pune, and three to six months in Bengaluru. At the end of the 11-month term, the agreement either expires naturally (and the licensee is bound to vacate) or is renewed through a fresh agreement — multiple renewals do not transform the arrangement into a tenancy provided each renewal is documented through a new agreement.

A Leave and Licence Agreement (11-month) is required whenever a residential or commercial property owner in India wishes to permit another person to occupy the property for a fixed short-term period while retaining full ownership rights and the ability to recover possession without protracted litigation.

Property owners in Mumbai, Pune, Navi Mumbai, and other Maharashtra cities renting out residential flats, row houses, or bungalows to working professionals, corporate employees, or students must execute a registered Leave and Licence under the Maharashtra Rent Control Act 1999. Registration at the Sub-Registrar's office — through the Maharashtra government's online Leave and Licence registration portal — is mandatory for Maharashtra residential properties. Without registration, the licensor cannot avail the Executive Magistrate recovery procedure under Section 24(1) of the Maharashtra Rent Control Act.

Property owners in Bengaluru, Hyderabad, Chennai, and Delhi NCR renting out apartments, independent houses, or studio units to IT sector employees, migrants, or students typically execute notarized Leave and Licence agreements on non-judicial stamp paper. The Karnataka Rent Act 1999 and the Delhi Rent Control Act 1958 both provide for Leave and Licence arrangements distinct from tenancies. Notarization before a Notary Public authorised under the Notaries Act 1952 gives the document a legal presumption of genuineness.

Corporate employers leasing residential accommodation for employees through Accommodation-on-Hire arrangements with flat owners use the Leave and Licence format — the company becomes the licensee, and individual employees are permitted to stay as sub-licensees (subject to the licensor's consent). Information technology companies in Bengaluru, Hyderabad, and Pune, and financial services firms in Mumbai and Delhi routinely execute large volumes of Leave and Licence agreements for employee accommodation.

Non-Resident Indians (NRIs) who own residential property in India and wish to rent it out during periods of absence use the Leave and Licence format to retain full control over their Indian property. The agreement's 11-month structure and automatic expiry make it easy for NRI owners to manage remotely through power of attorney holders. Rental income received by NRI property owners is taxable under Section 24 of the Income Tax Act 1961, with standard deduction and home loan interest deductions available.

Paying Guest (PG) accommodation providers operating in major cities under the Paying Guest model — where multiple licensees occupy rooms in a single property — use individual Leave and Licence agreements for each occupant. Each agreement covers the specific room, shared facilities, and the monthly PG charges. The 11-month term allows the PG provider to revise charges and manage turnover efficiently.

A Leave and Licence Agreement (11-month) must contain the following key provisions to be legally effective, to protect the licensor's ownership rights, and to be admissible as evidence in recovery proceedings under the Maharashtra Rent Control Act 1999 or equivalent state legislation.

The parties clause identifies the licensor (property owner) by full legal name, father's or husband's name, age, residential address, and PAN. For corporate licensors (companies or LLPs), the registered name, CIN, registered address, and authorised signatory details with Board resolution authority must be recorded. The licensee's corresponding details — full name, father's name, age, employer, residential address in home city, and PAN — are equally important for identification and for computing TDS on rent under Section 194-IB of the Income Tax Act 1961 (applicable where monthly rent exceeds ₹50,000).

The property description section precisely identifies the licensed premises — apartment number, floor, wing/block, building name, society name, CTS/survey number, taluka, district, and state. For Maharashtra properties, the BBMP khata number (in Karnataka) or CTS number (in Mumbai) provides the official record reference. The description should distinguish between the exclusive-use area (the flat itself) and common areas (lift, staircase, parking) to which the licensee has access.

The licence period clause states the commencement date and the expiry date in DD/MM/YYYY format, with the total period being eleven calendar months. The clause must be unambiguous — the licence terminates automatically on the expiry date and the licensee must vacate without further notice unless the parties execute a fresh agreement. Any holdover after the expiry date without a fresh agreement makes the licensee a trespasser, not a tenant.

The licence fee (rent) clause states the monthly licence fee in Indian Rupees (in both figures and words), the due date for payment each month (typically first to fifth of the month), and the mode of payment (NEFT/RTGS/UPI with bank details). Annual escalation at a specified percentage (typically 5–10% per year) should be stated if the parties intend for it to apply on renewal.

The security deposit clause records the refundable security deposit amount — typically two to six months' licence fee — and specifies the licensor's rights to deduct for unpaid dues, damages beyond fair wear and tear, and outstanding utility bills. The refund timeline (typically 7–30 days after vacation and key handover) and the no-interest clause are standard provisions.

The maintenance and utility obligations section allocates responsibility for electricity (BESCOM/MSEDCL/BSES), water supply, gas (PNG or cylinder), cable TV, internet, and society maintenance charges. Typically, the licensee pays electricity, water, and internet while the licensor pays society maintenance charges and property tax. The clause should specify meter numbers for BESCOM or MSEDCL accounts to avoid billing disputes.

The restrictions and permitted use clause limits the licensee to residential use only — no commercial activity, no subletting, no structural modifications, no pets (if prohibited by society), no loud music during restricted hours per the Noise Pollution (Regulation and Control) Rules 2000, and compliance with the Residential Society's bye-laws under the applicable State Co-operative Societies Act (Maharashtra Co-operative Societies Act 1960 / Karnataka Co-operative Societies Act 1959).

The notice period and termination clause specifies the notice required for early termination by either party — typically one month's notice in writing sent to the registered address or by WhatsApp/email with delivery confirmation. The licensor's right to terminate on breach of agreement, non-payment of rent, or unlawful use of the premises must be stated expressly.

For Maharashtra agreements, the stamp duty computation reference, Sub-Registrar office name and registration date, and document registration number complete the agreement. Both parties and two witnesses (with Aadhaar numbers and signatures) must be present at registration. The Notary Public's seal, registration number, and signature complete the notarization for non-Maharashtra agreements. The forms-legal.com Leave and Licence Agreement (11-Month Notarized) template covers the mandatory elements under Transfer of Property Act, 1882.