A leave and license agreement is a legal document under which a property owner (Licensor) gives another person (Licensee/tenant) temporary, personal permission to use a property for a fixed period — without creating any tenancy rights. It is the only valid tenancy format in Maharashtra and must be registered with the SRO through IGR Maharashtra under Section 55 of the Maharashtra Rent Control Act 1999.
Leave and License Agreement — Meaning & Definition
The term “leave and license” comes from the Indian Easements Act 1882, which defines a license as a right to do something on someone else’s property that would otherwise be unlawful. When a property owner “leaves” (gives permission) to a person to “use” (license) the property, it creates a Leave and License arrangement.
In simple terms: the landlord gives you permission to stay in their property for a fixed time. That permission can be revoked when the period ends. No permanent right is created.
📄 Legal Definition under Indian Easements Act 1882
“Where one person grants to another, or to a definite number of other persons, a right to do, or continue to do, in or upon the immovable property of the grantor, something which would, in the absence of such right, be unlawful, and such right does not amount to an easement or an interest in the property, the right is called a License.”
— Section 52, Indian Easements Act 1882
Key Parties in a Leave and License Agreement
| Party | Role | Also Called |
|---|---|---|
| Licensor | Property owner who grants permission | Landlord / Owner |
| Licensee | Person who gets permission to use the property | Tenant / Occupant |
| Witness 1 & 2 | Two adults who attest to the signing | Witnesses |
Leave and License Agreement vs Rental Agreement — Key Difference
This is the most important distinction to understand. Many people use the terms interchangeably, but they are legally very different:
| Feature | Leave and License | Rental Agreement |
|---|---|---|
| Legal basis | Indian Easements Act 1882 | Transfer of Property Act 1882 |
| Rights created | Personal, temporary license to use | Tenancy rights (can be hard to revoke) |
| Eviction after period ends | Easy — licensee must vacate | Difficult — may require court order |
| Rent Control Act applies? | Limited application | Full application — tenant has strong rights |
| Used in Maharashtra? | ✅ Standard format for all rentals | ❌ Avoided due to tenant protection risk |
| Registration mandatory? | Yes — Section 55 MRCA | Yes (if over 1 year) — Registration Act |
| Pagdi system | Does not apply | May apply to old tenancies |
Under old-style rental agreements, the Maharashtra Rent Control Act gave tenants near-permanent occupancy rights — including the right to pass the tenancy to their children (the Pagdi system). This made it nearly impossible for landlords to reclaim possession. Leave and License avoids this entirely because no tenancy rights are created. When the license period ends, the owner can reclaim the property without any legal complications.
What is a Registered Leave and License Agreement?
A registered leave and license is a leave and license agreement that has been formally stamped and filed with the Sub-Registrar’s Office (SRO) through the IGR Maharashtra portal. Registration is what makes the document legally valid.
Without registration, the agreement:
- Cannot be admitted as evidence in any court (Section 49, Registration Act)
- Is not accepted as address proof for Aadhaar, passport, or bank KYC
- Cannot be used for tenant police verification
- Exposes both parties to a fine up to ₹5,000 and imprisonment under Section 55 of the Maharashtra Rent Control Act
A notarized agreement is NOT the same as a registered agreement. Notarization has no legal standing for tenancy purposes in Maharashtra.
Is Leave and License Registration Compulsory in Maharashtra?
Yes. Registration is mandatory under Section 55 of the Maharashtra Rent Control Act 1999 for all Leave and License agreements, regardless of:
- The rent amount (even ₹1,000/month must be registered)
- The duration (even a 1-month arrangement must be registered)
- Whether the property is residential or commercial
The only practical exception is verbal arrangements between family members, but even these are legally vulnerable without registration.
Which Act Governs Leave and License in Maharashtra?
Three laws work together:
| Law | What it covers for L&L |
|---|---|
| Indian Easements Act 1882 | Defines what a “license” is legally |
| Maharashtra Rent Control Act 1999 | Makes registration mandatory (Section 55), governs rent, deposit, and eviction |
| Registration Act 1908 | Governs the registration process through SRO / IGR Maharashtra |
Standard Terms in a Leave and License Agreement
- Period: Usually 11 months (to keep stamp duty lower). Can be renewed.
- License fee: Monthly rent amount agreed between parties
- Refundable deposit: Typically 2–3 months rent in Mumbai (no statutory cap)
- Lock-in period: Period during which neither party can terminate (usually 6 months)
- Notice period: Required notice before vacating (usually 1–3 months)
- Maintenance: Specifies who pays for society maintenance
- Permitted use: Residential or commercial — other use is not allowed
Read our full guide on 13 important clauses in a leave and license agreement.
How to Register a Leave and License Agreement Online
The entire process can be done online through propdeed — no SRO visit required:
Fill the form at propdeed.in
Enter landlord, tenant, witness, and property details. Takes 10 minutes.
Send 3 documents on WhatsApp
Aadhaar (front + back), PAN, and property proof (landlord only).
Pay online
Stamp duty auto-calculated + ₹1,000 registration fee + ₹300 DHC + ₹899 service fee.
Doorstep biometric
Fingerprints captured at your location for all parties — landlord, tenant, 2 witnesses.
Get registered PDF
Delivered on WhatsApp and email as per SRO processing timeline.
Available across Mumbai, Thane, Pune, Navi Mumbai, and Palghar.
Register Your Leave and License Agreement Online
Fill the form in 10 minutes. Send 3 documents on WhatsApp. Doorstep biometric. Registered PDF delivered.
Get Started →₹899 + stamp duty + ₹1,000 registration + ₹300 DHC · Mon–Sat 10 AM–7 PM