Explainer - India

Leave & License vs Lease - what landlords should know

Choosing the wrong agreement type creates compliance risk. This guide compares leave & license and lease agreements in plain language so you can pick the right format for your term.

11-month termsRegistration rulesStamp duty

Key points

Best forResidential rentals
Key differencePossession rights
RegistrationDepends on term

What this page covers

Leave & License

Permission to occupy without transferring interest in the property.

Lease

Transfers an interest in property; usually longer terms.

What to choose

11-month rentals usually use Leave & License. Verify local rules.

How it works

Confirm your term
If you need 12+ months, registration is likely required.
Check stamp duty
Use the state portal or calculator for exact payable.
Sign correctly
Both parties Aadhaar eSign for validity.

FAQs

Is a leave & license agreement legally valid?

Yes, when properly stamped and signed. Consult a professional for legal interpretation.

Does a lease require registration?

Lease agreements of 12 months or more typically require registration under the Registration Act.

Which format is common for 11 months?

Leave & License is widely used for 11-month residential rentals.