FAQ’s

It’s mandatory to register Leave and License in Maharashtra and Tenants not registering their Leave and License may not get Police Clearance now on. As per directives issued by department of registration and stamps, Police Clearances certificates will not be issued to unregistered agreements.

Any kind of immovable property, including land, flats etc. may be taken on lease or leave and license unless there is a restriction on the transferability of the rights of such property.

The following are some of the differences between lease and a license: A lease is a transfer of an interest in specific property, while license is a mere permission to use the property, without any transfer of any interest in the property. Licensee only acquires a right to occupy the property and the legal ownership and the possession of the property remains with the licensor. In case of a lease, the legal possession of such property is also deemed to be transferred to the lessee. A licensee cannot sub-license the property to a third party under any circumstances. On the other hand, a lessee can sub-lease the property to a third party, unless the lease agreement expressly provides otherwise. Lease is an inheritable right. A license is personal and exclusive to the licensee i.e. on death of the licensee it automatically stands terminated.

It’s not mandatory to register Rent Agreement for 11 months. Renewable/extendable agreements for three to five years can also be made and registered. However, the stamp duty and registration charges for longer duration may differ.