Leave & License vs Lease Agreement: Which One Should You Sign?
The two look similar on paper, but they create very different legal rights — especially around eviction. Here's what actually separates them.
- Act
- Transfer of Property Act, 1882 (1882)
- Act number
- Act No. 4 of 1882
- Enacting authority
- Governor-General of India in Council — remains in force under Article 372 of the Constitution of India
- Transfer of Property Act, 1882 — full text (India Code)
- Indian Easements Act, 1882 — full text (India Code)
This article is for general information only and does not constitute legal advice. Always verify current provisions against the official source before relying on them.
The core legal difference
A lease, governed by Section 105 of the Transfer of Property Act, creates a transferable interest in the property. A leave and license agreement, governed by Section 52 of the Indian Easement Act, grants only permission to occupy — no interest in the property itself.
Why it matters for eviction
Because a lease creates a legal interest, evicting a lessee usually requires formal legal proceedings and can fall under stricter Rent Control Act protections. A licensee has no such interest, which makes eviction comparatively straightforward if the license is properly terminated per the agreement.
Why 11 months is the default
Most Indian rental agreements — whether structured as lease or leave-and-license — run for 11 months specifically to stay outside the compulsory registration requirement under the Registration Act and to avoid the tenancy protections that can kick in with longer, registered leases.
Which to choose
For most residential landlords renting out a single flat, a leave and license agreement is the standard choice — it's simpler, doesn't create a transferable interest and gives the owner more control if they need the property back. A registered lease makes more sense for longer-term commercial arrangements where both parties want the security of a fixed-term legal interest.