Difference between Licence & Lease
Monish Nilwant
(Querist) 22 November 2008
This query is : Resolved
can any 1 explain to me what are the differences between a licence & a lease of immovable propery with respect to the following
1) the minimum and maximum period prescirbed for both licence and lease
2) if they are required by law to be compulsorily registered.
3) with whom is the possession in each case4) what rights are transfered in each case
plz provide the supporting provisions of law with it
Adv.Shine Thomas
(Expert) 23 November 2008
(1)The lease of immovable property must be made for a certain period ie,for a definite number of years,or for life,or even permanently.But in licence agreement there is no stipulation as to total time period.However it generally doesnot exeed 5years.
A lease is defined u/s 105 of TP Act 1882 where as a licence is defined in sec.52 of the Indian Easement Act 1882.
(2)According to sec.107 of TP Act,a lease from year to year or for any term exeeding one year can be made only by a registered doccument.According to sec.17(1)d of Registration Act,both lease or licence agreement made for lessthan one year is not required to be registered.
(3)According to sec.105 of TP Act,a lease of immovable property is a transfer of a right to enjoy property ie,the possession is always given to the transferee.A licence does not transfer any interest in the property and the licencee has no right to possession.
J K Agrawal
(Expert) 23 November 2008
Sir
Both the laws different as explained by my friend. in simple lease means you get a property on rent and you tenant. In case of a license you are permitted to do some thing on property. Registration of agreement is not required in case of license. Lease agreement is subject to provisions of rent control act of your state and T P Act where is license is regulated by the law of Contracts.
