What is a leave and license agreement?
A leave and license agreement is a written agreement under which the owner (the licensor) gives another person (the licensee) permission to occupy premises for a fixed period in return for a licence fee. The legal concept comes from Section 52 of the Indian Easements Act, 1882: a licence is a personal permission to use property and does not transfer any interest in it.
The Maharashtra Rent Control Act, 1999 recognises leave and license arrangements. Section 55 requires every such agreement to be in writing and registered under the Registration Act, 1908, and places the responsibility for registration on the landlord. Section 24 gives the licensor the right to recover possession once the licence period ends.
Leave and license vs rent agreement (lease) in Maharashtra
| Leave and license agreement | Lease / rent agreement | |
|---|---|---|
| Governing law | Indian Easements Act, 1882 (s. 52) and Maharashtra Rent Control Act, 1999 | Transfer of Property Act, 1882 (s. 105) |
| What it gives | Permission to occupy - no interest in the property | Transfers a right to enjoy the property (an interest) |
| Registration in Maharashtra | Mandatory under s. 55 of the Rent Control Act, regardless of duration | Mandatory for terms of a year or more under s. 17 of the Registration Act; stamp duty applies |
| End of term | Licensor can seek possession on expiry (s. 24) | Tenant protections can make recovery of possession slower |
| Common use | Most residential and many commercial rentals in Pune | Long-term commercial or special arrangements |
This is why almost every “rent agreement” made in Pune today is actually a leave and license agreement. For a deeper explanation, read leave and license vs rent agreement.
Residential leave and license agreements
For flats, independent houses, rooms and shared accommodation, the agreement normally covers the licence period, monthly fee, deposit, lock-in, notice period, society rules, utilities and furnishings. Society NOCs or additional formalities may apply in some housing societies - check with your society office.
Commercial leave and license agreements
Shops, offices, clinics and other commercial premises can also be licensed. Commercial agreements usually need extra attention to:
- Permitted business use and any licences the business needs to operate from the premises.
- Fit-out periods, rent-free periods and who owns improvements on exit.
- Escalation clauses and GST, where applicable.
- Authorised signatory and board or partner authorisation for companies and firms.
We prepare the agreement based on the commercial terms you have agreed. For complex commercial leases, we recommend a review by your advocate.
Leave and license registration in Pune
Registration can be completed either through the online e-registration facility of the Department of Registration and Stamps (IGR Maharashtra) or at a Sub-Registrar office. Online registration is the more convenient route for most people: the document is prepared electronically, government charges are paid online, and the parties authenticate their identity through the prescribed method.
- Agree on the terms and share the details with us.
- Review and confirm the draft.
- Pay stamp duty and registration fee (government charges at actuals).
- Owner, tenant and witnesses complete identity authentication - we can arrange a doorstep visit where biometric capture is required.
- Receive the registered agreement.
Agreement period and renewal
The parties choose the licence period - 11 months is common by habit, but in Maharashtra an 11-month agreement must still be registered. The online system supports agreements up to a maximum period set by the department; we'll confirm what applies when drafting. When the period ends, a fresh agreement must be executed and registered to continue. See how to renew a rent agreement.
Tenant information to the police
Separately from registration, landlords in Pune are generally expected to share tenant details with the police. Requirements and the online process are set by Pune City Police and Pimpri-Chinchwad Police; check the latest instructions on the official police website.
Frequently asked questions
Is a rent agreement the same as a leave and license agreement?
Not legally. A lease (often called a rent agreement) transfers an interest in the property to the tenant, while a leave and license agreement only gives permission to occupy it. In Maharashtra, most rentals are documented as leave and license agreements.
A lease is governed by Section 105 of the Transfer of Property Act, 1882; a licence by Section 52 of the Indian Easements Act, 1882. In everyday language people in Pune say “rent agreement” for both. Read the full comparison in our guide on leave and license vs rent agreement.
Is a registered rent agreement necessary in Maharashtra?
Yes. Under Section 55 of the Maharashtra Rent Control Act, 1999, a leave and license agreement must be in writing and registered under the Registration Act, 1908. The Act places the responsibility for registration on the landlord.
This applies regardless of whether the agreement is for 11 months or longer. If the agreement is not registered, the Act provides that the tenant's version of the terms is taken as correct unless proved otherwise, and it prescribes a penalty for non-compliance.
Who pays the stamp duty on a rent agreement?
The owner and tenant can agree who pays, and the agreement should say so. In practice, the tenant (licensee) usually bears the stamp duty and registration fee in Pune, but it is a matter of agreement between the parties.
Whoever pays, the agreement must be adequately stamped - an under-stamped document can attract penalty. The stamp duty amount is calculated on the rent, deposit and period under Article 36A of the Maharashtra Stamp Act.
Can a rent agreement be renewed online?
A leave and license agreement is not extended automatically. To continue, the parties execute and register a fresh agreement for the new period, with stamp duty and registration fee payable again. This can be done through the same online process.
Start the renewal before the current agreement ends to avoid a gap. Read how to renew a rent agreement in Maharashtra.
What documents are required for a rent agreement?
Typically: identity proof of the owner, tenant and witnesses (Aadhaar is generally used for authentication), PAN where applicable, a property ownership or address proof such as a tax receipt or Index II, and the agreed rent, deposit and period.
Exact requirements depend on the agreement type and the current registration procedure. See the full documents checklist. Please do not send identity documents through website forms - we will tell you the secure way to share them.
Last reviewed 9 November 2026. This page is general information, not legal advice.