Leave and License Agreement (India)
This agreement allows a licensee to occupy and use a property for business purposes for a specific short-term period, typically 11 months. It clarifies that the arrangement is a license rather than a lease, ensuring the owner retains legal possession while the user pays a monthly fee.
A Specimen of Leave and License Agreement
THIS AGREEMENT is made at...... this...... day of ……......., 2018,
Between
Mr. A hereinafter referred to as ‘the Licensor’ of the One Part and Mr. B of …………… hereinafter referred to as the ‘Licensee’ of the Other Part, as follows;
WHEREAS the Licensor is the owner of a piece of land at………………………... bearing Survey No ... with a building consisting of …………. floor ...... having built up area of about ..... square feet. AND WHEREAS the Licensee has approached the licensor with a request to allow the Licensee to temporarily occupy and use a portion of the...... floor of the said building, admeasuring about ...... square feet for carryingon his ...... business, on leave and license basis until the Licensee gets other more suitable accommodation.
AND WHEREAS the Licensor has agreed to grant leave and license to the Licensee to occupy and use the said ground floor portion of the said building and which portion is shown on the plan hereto annexed by red boundary line on the following terms and conditions agreed to between the parties hereto; NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS..
1. The Licensor hereby grants leave and license to the Licensee to occupy and use the said portion of the ground floor/....... floor of the said building of the Licensor (hereinafter referred to as the Licensed Premises) for a period of eleven months from ...... The Licensee agrees to vacate the said premises even earlier if the Licensee secures any other accommodation in the locality where the said premises are situated.
2. The Licensee shall pay to the Licensor a sum of Rs………..... per month (calculated at the rate of Rs………..... per square foot) as License fee or compensation to be paid in advance for each month on or before the...... day of each month.
3. All the Municipal taxes and other taxes and levies in respect of the licensed premises will be paid by the Licensor alone.
4. The electric charges and water charges for electric and water consumption in the said licensed premises will be paid by the Licensee to the authorities concerned and the Licensor will not be responsible for the same. For the sake of convenience a separate electric and water meter if possible will be provided in the said premises.
5. The Licensee will be allowed to use the open space near the entrance to the Licensed premises and shown on the said plan by green wash for parking cars during working hours of the Licensee and not for any other time and no car or other vehicle will be parked on any other part of the said plot.
6. The licensed premises will be used only for carrying on business and for no other purpose.
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