Leave and Licence Agreement (11 Months)
An eleven-month residential leave and licence agreement with a defined deposit refund timeline and a repairs split.
A leave and licence agreement lets an owner permit someone to occupy residential premises for a fixed period and fee, without creating a tenancy. Eleven-month terms are common, but stamping and registration rules depend on your State.
What to watch when you use this
- Eleven months keeps the term below the threshold at which registration becomes compulsory for leases from year to year or exceeding one year.
- Tenancy is a State subject, so deposit limits, notice and eviction grounds vary; confirm the position for your State.
- Stamp duty on this instrument is State-specific and is not addressed here.
- The deposit clause states a refund timeline and itemised deductions, which is what prevents most end-of-tenancy disputes.
Stamping and registration. Stamp duty is a State subject, and an unstamped or insufficiently stamped instrument is generally inadmissible in evidence under Section 35 of the Indian Stamp Act, 1899 until the duty and penalty are paid. Registration requirements are separate and depend on the instrument and the State. Confirm both for your State before executing this document.
LEAVE AND LICENCE AGREEMENT
This Agreement is made on [DATE] at [CITY] between:
[LICENSOR NAME], [ADDRESS], [PAN] ("Licensor"); and
[LICENSEE NAME], [ADDRESS], [PAN] ("Licensee").
1. PREMISES
The Licensor permits the Licensee to occupy the premises at [FULL ADDRESS INCLUDING FLAT NUMBER, BUILDING, LOCALITY, CITY, PIN] ("Premises"), admeasuring approximately [AREA], together with the fixtures listed in the Schedule.
2. TERM
The licence is granted for eleven months commencing on [DATE] and ending on [DATE].
3. LICENCE FEE
3.1 The Licensee will pay [AMOUNT] per month, on or before the [DAY] day of each month, by bank transfer to the account notified by the Licensor.
3.2 Electricity, water, gas and internet charges are payable by the [Licensee / Licensor].
3.3 Society maintenance charges are payable by the [Licensor / Licensee].
3.4 Municipal taxes are payable by the Licensor.
4. SECURITY DEPOSIT
4.1 The Licensee has paid a refundable deposit of [AMOUNT], receipt of which the Licensor acknowledges.
4.2 The deposit does not carry interest unless required by applicable law.
4.3 The Licensor will refund the deposit within [NUMBER] days of the Licensee vacating and handing over the Premises, after deducting only: unpaid licence fee; unpaid utility charges; and the cost of repairing damage caused by the Licensee beyond fair wear and tear.
4.4 The Licensor will provide an itemised written statement of any deduction, with supporting documents.
5. USE
The Premises are to be used for residential purposes only, by the Licensee and the persons listed in the Schedule.
6. REPAIRS
6.1 The Licensee is responsible for day-to-day maintenance and for repairs costing up to [AMOUNT] individually.
6.2 The Licensor is responsible for structural repairs and for repairs to the building systems, including plumbing, electrical wiring, waterproofing and the water tank.
6.3 The Licensee will notify the Licensor in writing of any repair falling under clause 6.2. If the Licensor does not carry out the repair within [NUMBER] days of notice, the Licensee may carry it out and deduct the documented cost from the licence fee.
7. ENTRY
The Licensor may enter the Premises on [NUMBER] hours' prior written notice, at a mutually convenient time, for inspection or repairs. In an emergency the Licensor may enter without notice.
8. ALTERATIONS AND SUBLETTING
The Licensee will not make structural alterations to the Premises, or part with possession of the Premises, without the Licensor's prior written consent.
9. TERMINATION
9.1 Either party may terminate this Agreement by giving [NUMBER] months' written notice.
9.2 There is a lock-in period of [NUMBER] months from the commencement date, applicable to both parties.
9.3 On termination the Licensee will hand over the Premises in the same condition, fair wear and tear excepted, together with all keys and access devices.
10. RENEWAL
The parties may renew this Agreement by mutual written agreement. Any revision of the licence fee on renewal will not exceed [PERCENTAGE]%.
11. GOVERNING LAW
This Agreement is governed by the laws of India and the tenancy legislation applicable in [STATE]. The courts at [CITY] shall have jurisdiction.
Signed:
_______________________ _______________________
[LICENSOR] [LICENSEE]
Witness 1: _______________ Witness 2: _______________
SCHEDULE: FIXTURES, FITTINGS AND OCCUPANTS
[List fixtures with condition, and name the permitted occupants. Attach dated photographs.]
---
This free template is provided by ClauseAudit as general information, not legal advice, and using it does not create an advocate-client relationship. Replace every [BRACKETED] placeholder. Stamp duty and registration requirements vary by State and are your responsibility. Have the final document reviewed by a qualified advocate before use.When to use this template
- When letting out a flat or house for residential use for less than a year.
- When moving into rented premises and you want the deposit refund and repairs dealt with in writing.
- When renewing an expiring arrangement on revised terms.
- When the owner's draft has one-sided terms on deposit deductions, entry or lock-in and you want a balanced alternative.
How to fill it in
- Insert both parties' names, addresses and PAN, and the full address of the premises with flat number and PIN code.
- Fill in the eleven-month term, the monthly licence fee and due date, and how utilities, society maintenance and municipal taxes are split.
- Fill in the deposit amount and the refund period in clause 4.3. Check whether your State caps deposits under its own law or an adopted version of the Model Tenancy Act, 2021.
- Fill in the repair threshold, entry notice, termination notice, lock-in period and renewal cap.
- Complete the Schedule with fixtures and their condition, attach dated photographs, and list the permitted occupants.
- Pay stamp duty under your State's stamp law. In Maharashtra, every leave and licence agreement must be registered whatever its term. Elsewhere, an agreement under one year usually need not be registered, but some States require tenancies to be reported to a Rent Authority.
- Sign before two witnesses, give each party an original, and complete tenant police verification where your city requires it.
Key clauses explained
- Term (clause 2)
- An eleven-month licence avoids compulsory registration under Section 17 of the Registration Act, 1908 in most States, but not in Maharashtra, where all leave and licence agreements must be registered.
- Security deposit and refund (clause 4)
- Sets a refund deadline, limits deductions to unpaid fees, utilities and damage beyond fair wear and tear, and requires an itemised statement. This prevents most end-of-tenancy disputes.
- Repairs (clause 6)
- Splits minor upkeep from structural and building-system repairs, and lets the licensee carry out an urgent owner-side repair and deduct the documented cost if the owner does not act.
- Entry (clause 7)
- The owner may enter only on written notice at a convenient time, except in an emergency. This protects the occupant's privacy while allowing inspection and repairs.
- Termination and lock-in (clause 9)
- Sets a notice period and a lock-in that binds both parties equally, and requires the premises to be returned in the same condition, fair wear and tear excepted.
- Renewal cap (clause 10)
- Limits any increase in the licence fee on renewal to an agreed percentage, so the occupant knows the maximum increase in advance.
Frequently asked questions
Why are rent agreements usually for eleven months?
Section 17 of the Registration Act, 1908 makes registration compulsory for leases from year to year, for more than one year, or reserving a yearly rent. An eleven-month term keeps many agreements outside that rule. It does not work everywhere: Maharashtra requires every leave and licence agreement to be registered, and some States require tenancies to be reported to a Rent Authority.
What is the difference between leave and licence and a lease?
A lease transfers an interest in the property to the tenant. A licence, as defined in Section 52 of the Indian Easements Act, 1882, is only a permission to use the premises, and no interest passes. Courts look at the substance rather than the label, so an arrangement that in reality gives exclusive possession on lease-like terms may be treated as a lease.
Is there a legal limit on the security deposit?
It depends on your State. The Model Tenancy Act, 2021 suggests a cap of two months' rent for residential premises, but it is only a model and applies only where a State has adopted it. Many cities have no statutory cap, and market practice varies widely. Whatever the amount, the refund timeline and itemised deductions in clause 4 matter most.
What if the agreement is not stamped or registered?
An unstamped or under-stamped agreement cannot be admitted in evidence until the duty and penalty are paid, under the Indian Stamp Act, 1899 or the State's equivalent provision. An agreement that had to be registered but was not can generally be relied on in court only for limited purposes. In Maharashtra, failing to register a leave and licence agreement can also attract a penalty.
Can the licensee deduct repair costs from the licence fee?
Only where the agreement allows it. Clause 6.3 lets the licensee carry out a structural or building-system repair and deduct the documented cost if the licensor does not act within the notice period. Without such a clause, deducting money on your own can be treated as non-payment. Keep the written notice, invoices and photographs.
Is notarising the agreement enough?
No. Notarisation is common but does not replace stamp duty or registration. A notarised agreement that should have been registered is still unregistered. Where registration is not required, notarisation adds some evidence of execution, but correct stamping and witnesses matter more. In Maharashtra, leave and licence agreements are registered with the sub-registrar, and an online registration facility is available.
Been handed the other side's version instead?
Upload it and get every clause checked against Indian law, with the provision each finding rests on.
Review a rent agreement contractRead before you sign
- Why Is Your Rent Agreement 11 Months?The eleven-month rent agreement exists because of the registration threshold in the Registration Act and the Transfer of Property Act.
- Lock-In Periods That Bind Only the TenantLock-in clauses in Indian rent agreements are often one-sided. Here is what to check and how forfeiture is treated.
- Security Deposit Deductions: What Your Landlord Can and Cannot KeepDeposit disputes are the most common problem at the end of an Indian tenancy. Tenancy is a State subject, so the rules vary.
- Your Landlord Cannot Simply Lock You OutCutting utilities, changing locks or removing belongings to force a tenant out is not how eviction works, whatever the agreement says.
Related templates
This free template is general information about Indian law as at 2026-10-10, not legal advice, and using it does not create an advocate–client relationship. Replace every bracketed placeholder and have the final document reviewed by a qualified advocate before use.