11-Month Rental Agreement Format — Leave and License India

# 11-Month Rental Agreement Format — Leave and License India

The 11-month rental agreement — formally called a Leave and License Agreement — is the most commonly used format for residential property rentals in India. The 11-month term is chosen deliberately to keep the agreement outside the purview of the Rent Control Acts of most states, which typically apply to tenancies of 12 months or more. Under an 11-month Leave and License, the property owner retains a stronger legal position and can seek recovery of possession through a relatively faster process compared to traditional tenancy.

Under Maharashtra law, Leave and License agreements are governed by Section 24 of the Maharashtra Rent Control Act, 1999, and must be registered under the Registration Act, 1908. In Maharashtra, both the licensor (owner) and licensee (tenant) can face penalties for using an unregistered agreement.

This page provides an educational guide. This is for informational purposes only and does not constitute legal advice. Have the agreement reviewed by a qualified advocate before execution.

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When to Use This Template

An 11-month Leave and License Agreement is used when:

- You are renting out a residential apartment, flat, house, or room to a new tenant

- You want a standard agreement that is easy to renew or terminate at the end of 11 months

- You are a tenant and want a clear written agreement protecting your rights and formalising the tenancy

- You want to clearly document the rent amount, security deposit, maintenance responsibilities, and other terms

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Sample Format

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LEAVE AND LICENSE AGREEMENT

THIS LEAVE AND LICENSE AGREEMENT is entered into at [CITY] on this [DATE IN WORDS] (DD/MM/YYYY: [DATE]) between:

LICENSOR:

[LICENSOR'S FULL NAME], [Age: XX years], [Occupation], [PAN No.: XXXXXXXXXX], residing at [LICENSOR'S PERMANENT ADDRESS], hereinafter referred to as "the Licensor" (which expression shall include his/her heirs, legal representatives, administrators, executors, and assigns);

AND

LICENSEE:

[LICENSEE'S FULL NAME], [Age: XX years], [Occupation/Employer: NAME OF EMPLOYER], [PAN No. / Aadhaar No.: XXXXXXXXXX], residing at [LICENSEE'S PERMANENT ADDRESS / HOMETOWN ADDRESS], hereinafter referred to as "the Licensee" (which expression shall include his/her heirs, legal representatives, and assigns).

WHEREAS the Licensor is the absolute and lawful owner of the premises bearing [FLAT / HOUSE NO., BUILDING NAME, FLOOR, COMPLETE ADDRESS INCLUDING SOCIETY NAME, AREA, CITY, PIN CODE] (hereinafter referred to as "the Licensed Premises"), and is desirous of granting leave and license to the Licensee to use and occupy the said Licensed Premises on the terms and conditions set out herein.

NOW THEREFORE, this Agreement witnesses as follows:

1. GRANT OF LICENSE

The Licensor hereby grants leave and license to the Licensee, and the Licensee accepts the same, to use and occupy the Licensed Premises for residential purposes only, for a period of [11 (Eleven)] months commencing from [START DATE: DD/MM/YYYY] and ending on [END DATE: DD/MM/YYYY], subject to the terms and conditions herein.

2. LICENSE FEE (RENT)

a. The Licensee shall pay to the Licensor a monthly license fee (rent) of Rs. [MONTHLY RENT IN FIGURES] (Rupees [IN WORDS] only) per month.

b. The license fee shall be payable on or before the [DAY — e.g., 5th] day of each English calendar month.

c. The license fee shall be paid by [PAYMENT MODE — e.g., "NEFT/IMPS/UPI transfer to the Licensor's bank account — Bank: [BANK NAME], Account No.: [ACCOUNT NUMBER], IFSC: [IFSC CODE], Account Holder: [NAME]"].

d. A delay of more than [NUMBER — e.g., 7] days in payment of the monthly license fee shall attract a late payment charge of Rs. [LATE FEE AMOUNT] per day of delay.

3. SECURITY DEPOSIT (REFUNDABLE)

a. The Licensee has paid to the Licensor, and the Licensor acknowledges receipt of, a refundable security deposit of Rs. [DEPOSIT AMOUNT IN FIGURES] (Rupees [IN WORDS] only) (equivalent to [NUMBER] months' rent).

b. The security deposit shall be refunded to the Licensee within [30/45/60] days of the Licensee handing over vacant and peaceful possession of the Licensed Premises to the Licensor, after deducting any amounts due towards:

i. Arrears of license fee or any other dues under this Agreement

ii. Costs of repair for any damages caused to the Licensed Premises by the Licensee (other than normal wear and tear)

iii. Any unpaid electricity, water, or other utility bills.

c. The Licensor shall not be obliged to refund the deposit until vacant possession is obtained and the final bill reconciliation is completed.

4. PURPOSE AND USE

a. The Licensed Premises shall be used exclusively for residential purposes. The Licensee shall not use it for commercial, industrial, or any other non-residential purpose.

b. The Licensee shall not carry on or permit any unlawful activity, nuisance, or disturbance in the Licensed Premises or the building/society.

5. OCCUPANCY

a. The Licensed Premises shall be occupied by [LICENSEE'S NAME] and his/her [immediate family members / specify — "spouse and children" / "and family not exceeding [NUMBER] persons"].

b. The Licensee shall not permit any other person to occupy or sub-license the Licensed Premises without the prior written consent of the Licensor.

6. MAINTENANCE AND UTILITIES

a. The Licensee shall pay and bear the cost of electricity charges as per the electricity meter readings, on a monthly basis directly to [MSEDCL / BEST / applicable utility].

b. The Licensee shall pay society maintenance charges of Rs. [AMOUNT] per month [OR: "as applicable from time to time"] directly to the Housing Society [OR: "through the Licensor as billed"].

c. [Cooking gas / piped gas / water charges — specify responsibility.]

d. The Licensor shall be responsible for major structural repairs, if any, required to the Licensed Premises.

e. The Licensee shall be responsible for day-to-day maintenance, minor repairs (not exceeding Rs. [AMOUNT] per incident), and upkeep of the Licensed Premises in a clean and habitable condition.

f. The Licensee shall not make any structural alterations, additions, or modifications to the Licensed Premises without the prior written consent of the Licensor.

7. CONDITION OF PREMISES

The Licensed Premises is handed over with the following fittings and fixtures: [List all items provided — e.g., AC units (Number, Brand, Capacity), Fans (Number), Geysers (Number), Wardrobe, Kitchen Cabinets, Flooring type, etc.]. The Licensee acknowledges that the above items are in good working condition as on the commencement date.

8. TERMINATION AND NOTICE PERIOD

a. This Agreement shall automatically expire on the end date stated in Clause 1, i.e., [END DATE].

b. Either party may terminate this Agreement before the expiry date by giving not less than [1/2] month's prior written notice to the other party.

c. If the Licensee fails to vacate on the date of expiry or on the date specified in the termination notice, the Licensor shall be entitled to initiate legal proceedings to recover possession without further notice.

d. On termination or expiry, the Licensee shall hand over vacant and peaceful possession of the Licensed Premises to the Licensor, along with all keys, in the same condition as received, fair wear and tear excepted.

9. RENEWAL

This Agreement may be renewed for a further period on mutually agreed terms by executing a fresh Leave and License Agreement before or at the time of expiry. Renewal shall NOT be presumed — it requires a fresh written agreement.

10. GENERAL CONDITIONS

a. The Licensee shall comply with all rules and by-laws of the Housing Society / Building Management.

b. The Licensee shall not keep pets / [specify if pets are allowed].

c. The Licensor and/or his/her authorised representative shall be permitted to inspect the Licensed Premises at a mutually convenient time after giving [24/48] hours' prior notice.

d. The Licensor shall bear property tax and major structural maintenance costs.

e. If the Licensee abandons the premises or does not pay rent for 2 or more consecutive months, the Licensor shall be entitled to terminate this Agreement forthwith.

11. DISPUTE RESOLUTION

Any dispute arising out of or in connection with this Agreement shall first be attempted to be resolved through mutual negotiation. If unresolved, disputes shall be referred to a sole arbitrator under the Arbitration and Conciliation Act, 1996, or adjudicated before the competent courts at [CITY] which shall have exclusive jurisdiction.

12. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with respect to the Licensed Premises and supersedes all prior negotiations, representations, and agreements.

IN WITNESS WHEREOF, the parties have signed this Leave and License Agreement on the day and year first above written.

LICENSOR:

Signature: _______________

Name: [LICENSOR'S NAME]

Date: _______________

LICENSEE:

Signature: _______________

Name: [LICENSEE'S NAME]

Date: _______________

WITNESSES:

1. Signature: _______________

Name: _______________

Address: _______________

2. Signature: _______________

Name: _______________

Address: _______________

[NOTARISATION / REGISTRATION STAMP — Registered at Sub-Registrar ____________, Document No. ___, Date ___]

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Key Elements Explained

**11-Month Term**

The 11-month term keeps the agreement outside most Rent Control Act protections. At the end of 11 months, the licensor can ask for vacation without needing to establish a "ground" for eviction. If the parties want to continue, a fresh agreement is signed.

**License Fee vs. Rent**

Under a Leave and License agreement, the payment is technically called a "license fee" not "rent." This linguistic distinction supports the legal position that the arrangement is a license (temporary, revocable permission to use) rather than a lease (creating a property right in the tenant).

**Security Deposit**

Security deposits in Maharashtra are typically 2–3 months' rent. The refund conditions must be clearly stated. Courts have been strict about arbitrary deductions from security deposits.

**Maintenance Clause**

Clearly allocating maintenance responsibilities prevents the most common disputes between landlords and tenants. List all fittings and fixtures with their current condition.

**Registration**

In Maharashtra, registration is compulsory and registration fees are based on a formula (typically 1% of total rent + deposit for the term, or a flat fee — check current Maharashtra IGR rates). Unregistered agreements are still valid between parties but cannot be relied upon as evidence in court without paying penalty.

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Important Notes

**Registration Is Mandatory in Maharashtra**

Under Section 55 of the Maharashtra Rent Control Act, 1999, a Leave and License agreement must be registered. Failure to register attracts a penalty (typically up to 2% of the stamp duty value). Online registration is available through the Maharashtra IGR portal (igrmaharashtra.gov.in).

**Stamp Duty**

In Maharashtra, stamp duty on a Leave and License agreement is calculated on the total license fee for the period plus the security deposit. The stamp duty rate is 0.25% of the total consideration (rent × months + deposit) for a period up to 60 months. Use the IGR stamp duty calculator for exact amounts.

**Biometric Registration**

Since 2013, Maharashtra has mandated biometric authentication (fingerprints) of both parties at the time of e-registration of Leave and License agreements. Both licensor and licensee must be present or use authorised representatives.

**Post-Expiry Occupancy**

If the licensee remains in possession after expiry without a fresh agreement, they become a "tenant at will" in some jurisdictions. The licensor should always sign a fresh agreement or initiate possession recovery promptly.

**Rent Receipt**

The licensor should issue monthly rent receipts. These are important for the licensee's HRA (House Rent Allowance) claims and for both parties' tax records.

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FAQ

**Q1. Why is the rental agreement made for 11 months and not 12 months?**

A tenancy for 12 months or more may fall under the applicable state Rent Control Act, which gives tenants stronger protection and makes eviction more difficult. An 11-month Leave and License agreement is structured to stay below this threshold, giving the licensor (landlord) the ability to recover possession at the end of the term without needing to prove a specific ground for eviction under the Rent Control Act.

**Q2. Is an unregistered 11-month rental agreement valid?**

It is valid as a private agreement between the parties (they can enforce its terms against each other), but in Maharashtra, it is legally required to be registered. An unregistered agreement cannot be produced as evidence before a court without paying a penalty. For practical and legal protection, always register the agreement.

**Q3. What is the correct process to evict a licensee who does not vacate after expiry of the 11-month term?**

Send a formal notice (registered post) demanding vacation. If the licensee does not vacate, file an application for recovery of possession before the competent Rent Authority or Civil Court. Under the Leave and License framework, the licensor can also initiate proceedings before the Sub-Divisional Magistrate (Maharashtra) for expedited possession recovery. The process is generally faster than under a traditional rent tenancy.

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*This template is provided for educational and informational purposes only. It does not constitute legal advice. Rental agreement requirements, stamp duty, and registration norms vary by state. Always consult a qualified advocate and have your agreement reviewed before execution.*