Lease Or Leave And License: Dynamics For Commercial Decisions

The query regarding the feasibility of a lease and leave and license is often answered through commercial feasibility in terms of the applicable stamp duty, particularly in Maharashtra. However, it is necessary to comprehend the intention of the parties vis-à-vis a property to arrive at the necessary documentation.

Lease and leave and license are the two broad types of contractual relationships that can exist between the owner i.e landlord of the property and the person who desires to use such property or premise for residential or commercial use.

 A lease is defined under the Transfer of Property Act, 1882 and gets its validity thereunder. Whereas a license, is essentially a license to use a premise as governed under the Indian Easement Act, 1882. In the State of Maharashtra, a leave and license is recognized as a contractual relationship between two parties in respect of a property and is regulated under the Maharashtra Rent Control Act, 1999.