Leave And License Agreement Template and How to Draft One (2026)

What is a leave and license agreement, and when do you need one? A leave and license agreement lets a licensor (the owner) allow a licensee to use premises for a fixed period, in return for a fee, without transferring any interest in the property. It gives permission to occupy, not a tenancy. That distinction matters: a license does not create the kind of possessory rights a lease or tenancy can, which is why owners across India, and especially in Maharashtra, prefer it for residential and commercial lettings. You need a leave and license agreement whenever you let someone occupy your flat, office or shop for a set term while keeping legal possession yourself. It is the standard document for renting homes and offices in cities such as Mumbai and Pune, and it is commonly made for 11 months, though the term can be longer. A leave and license is different from a lease. A lease under the Transfer of Property Act, 1882 transfers an interest in the property and can give the tenant stronger protection. A license only grants permission to use. Courts look at the substance of the arrangement, not just its title, so an agreement must genuinely operate as a license, not a disguised lease. This article is general guidance, not legal advice. Letting of premises engages state rent-control, stamp duty and registration law, which vary by state, so have a qualified advocate review any agreement before you rely on it. ## Leave and license agreement template Copy the block below and fill the bracketed fields. ```

LEAVE AND LICENSE AGREEMENT This Leave and License Agreement ("Agreement") is made on [DATE] at [PLACE] BETWEEN: [OWNER NAME], [address] ("Licensor") AND [OCCUPANT NAME], [address] ("Licensee") 1. LICENSE The Licensor grants the Licensee permission to use the premises at [full address] ("Premises") for [residential / commercial] use only. This Agreement grants a license to use and does not create any tenancy, lease or interest in the Premises. 2. TERM The license runs for [11 months / period] from [START] to [END]. Renewal, if any, requires a fresh agreement, fresh stamp duty and fresh registration. 3. LICENSE FEE The Licensee shall pay [AMOUNT] per month as license fee, in advance by the [Nth] of each month, by [mode]. [Annual increase of [X]%.] 4. SECURITY DEPOSIT The Licensee shall pay a refundable interest-free deposit of [AMOUNT], refundable within [N] days of handover, less lawful deductions for damage or dues. 5. USE AND HOUSE RULES The Licensee shall use the Premises only for the stated purpose, keep it in good condition, not sublet or part with possession, not make structural changes, and follow society / building rules. 6. UTILITIES AND MAINTENANCE The Licensee pays electricity, water, gas and [internet] on actuals. The Licensor pays property tax and major structural repairs; the Licensee handles minor day-to-day upkeep. 7. ENTRY AND INSPECTION The Licensor may inspect the Premises on [reasonable] notice. 8. TERMINATION AND NOTICE Either party may end this Agreement on [N] months written notice. The Licensor may end it immediately if the fee is unpaid for [N] months or the Licensee breaches a material term. 9. HANDOVER On termination the Licensee shall vacate and hand over the Premises in the same condition, normal wear excepted, and return all keys. 10. REGISTRATION AND STAMP DUTY The parties shall register this Agreement and pay stamp duty as required by the applicable state law. [In Maharashtra registration is the Licensor's responsibility.] 11. INVENTORY The fixtures and fittings handed over are listed in Annexure 1. 12. GOVERNING LAW This Agreement is governed by the laws of [state] and the courts at [place]. Signed Licensor: __________ Signed Licensee: __________ Witness 1: __________ Witness 2: __________

- **Term and renewal (clause 2).** The 11-month term is a convention, not a magic number. Say clearly that renewal needs a fresh agreement with fresh stamp duty and registration. Automatic renewal without fresh registration is not reliable.
- **License fee and deposit (clauses 3 and 4).** Fix the monthly fee, due date, any annual increase, and the deposit amount, and set a clear refund period and the deductions allowed. Deposit disputes are the most common fight at the end of a tenancy.
- **Use and house rules (clause 5).** Limit use to the stated purpose, require the occupant to follow society rules, and ban structural changes.
- **Utilities and repairs (clause 6).** Split running costs from the owner's structural obligations so neither side is surprised.
- **Termination (clause 8).** Set a clear notice period for both sides and immediate termination for non-payment or material breach. ## Common mistakes to avoid - Writing an agreement that operates as a lease while calling it a license.
- Skipping registration in states such as Maharashtra where it is compulsory regardless of the 11-month term.
- No clear deposit refund period or list of allowed deductions.
- No inventory of fixtures, so the end-of-term condition is disputed.
- Allowing subletting or structural changes by silence.
- Relying on an automatic renewal clause instead of a fresh registered agreement. ## A note on registration, stamp duty and jurisdiction Whether a leave and license agreement must be registered, and how much stamp duty it attracts, varies by state. The common belief that an 11-month agreement never needs registration is not reliable everywhere. In Maharashtra, Section 55 of the Maharashtra Rent Control Act, 1999 requires every leave and license or letting agreement to be in writing and registered, regardless of the term, and the responsibility to register falls on the licensor, who can face penalties for not doing so. If a registered agreement is absent, the law can treat the occupant's version of the terms as prevailing. <!-- [VERIFY: current registration threshold and stamp duty rate in the specific state, and the 11 vs 12 month point under Section 55 as sources differ] --> In many other states, registration is required where the term crosses the threshold set by the Registration Act, 1908. Confirm the current registration requirement and stamp duty with the state's registration department or an advocate before signing. Last verified October 2026. ## Where a contract workspace helps A template gets you a sound leave and license agreement. The ongoing work is everything after: keeping fee, deposit and notice terms consistent across many tenants, checking each agreement for a clause that turns a license into a tenancy, remembering renewal and registration dates, and keeping versions straight as the portfolio grows. Drafting a leave and license agreement, reviewing it so it does not read as a disguised tenancy or drop a deposit-refund term, tracking the renewal and registration dates and governing a growing set of tenants can all sit in one AI workspace tuned to how you let property. A tool like [Adira](https://adiralaw.com) works along these lines. This template alone is enough to put a fair leave and license agreement in place; a single workspace just makes the drafting, review and tracking one connected job rather than several scattered ones.