Leave and license for 3 years
Querist :
Anonymous
(Querist) 02 January 2012
This query is : Resolved
I want to give my shop on Leave and License basis for 3 years.
1.Is it safe as many people are suggesting atherwise. 2.What precautions should I take to ensure that it is safe?
Deepak Nair
(Expert) 02 January 2012
There is no harm in giving the shop for Leave and License.
You can put a clause in the Leave and License Agreement that this agreement is for using the premises for __ period for commercial use and the agreement does not crate any right, interest or claim over the premises on the Licensee.
If you are not confident enoug to give the premises on L&L for 3 years, you can give the same for 11 months which can be renewe on expiry of 11 months.
V R SHROFF
(Expert) 02 January 2012
but the Agreement of LL must be on proper stamp duty paid and Registered.
3 years period is allowed in Mumbai(Mah State)
Devajyoti Barman
(Expert) 02 January 2012
1. No agreement is safe of the other party is hell bent upon violating its terms.
Still leave and license is better than other form of lease.
2. Nothing except a good drafting of the agreement,
M.Sheik Mohammed Ali
(Expert) 02 January 2012
all experts pls confirm me, the leave and license is applicable to house rental.
Deepak Nair
(Expert) 03 January 2012
Dear mr.Sheik, do you want to ask that whether L&L is applicable for houses for residential purpose?
If yes, then my answer is YES.
prabhakar singh
(Expert) 03 January 2012
If you are in Maharashtra then registration for 3 years may be possible but if you are in some other state you need to check the law of your state.As general section 52 of easement act applies.But since such an agreement does not create any interest in property,how the licensee would be able to get shop registration and other utilities may have a bearing on the decision.
prabhakar singh
(Expert) 03 January 2012
The definition in Maharashtra Rent control Act is as under:
(5) "Licensee", in respect of any premises or any part thereof, means the person who is in occupation of the premises or such part, as the case may be, under a subsisting agreement for license given for a license fee or charge; and includes any person in such occupation of any premises or part thereof in a building vesting in or leased to a co-operative housing society registered or deemed to be registered under the Maharashtra Co-operative Societies Act, 1960; but does not include a paying guest, a member of a family residing together, a person in the service or employment of the licensor, or a person conducting a running business belonging to the licensor or a person having any accommodation for rendering or carrying on medical or Para-medical services or activities in or near a nursing home, hospital, or sanatorium or a person having any accommodation in a hotel, lodging house, hostel, guest house, club, nursing home, hospital, sanatorium, dharmashala. home for widows, orphans or like premises, marriage or public hall or like premises, or in a place of amusement or entertainment or like institution, or in any premises belonging to or held by an employee or his spouse who on account of exigencies of service or provisions of residence attached to his or her post or office is temporarily not occupying the premises, provided that he or she charges license fee or charge for such premises of the employee or spouse not exceeding the standard rent and permitted increase for such premises, and any additional sum for service supplied with such premises or a person having accommodation in any premises or part thereof for conducting a canteen, creche, dispensary or other services as amenities by any undertaking or institution; and the expressions "license", "licensor" and "premises given on license" shall be construed accordingly;
And the eviction procedure is as under:-
24. Landlord entitled to recover possession of premises given on license on expiry.
(1) Notwithstanding anything contained in this Act, a licensee in possession or occupation of premises given to him on license for residence shall deliver possession of such premises to the landlord on expiry of the period of license; and on the failure of the licensee to so deliver the possession of the licensed premises, a landlord shall be entitled to recover possession of such premises from a licensee, on the expiry of the period of license, by making an application to the Competent Authority, and, the Competent Authority, on being satisfied that the period of license has expired, shall pass an order for eviction of a licensee.
(2) Any licensee who does not deliver possession of the premises to the landlord on expiry of the period of license and continues to be in possession of the licensed premises till he is dispossessed by the Competent Authority shall be liable to pay damages at double the rate of the license fee or charge of the premises fixed under the agreement of license.
(3) The Competent Authority shall not entertain any claim of whatever nature from any other person who is not a licensee according to the agreement of license.
Explanation- For the purposes of this section,-
(a) the expression "landlord" includes a successor-in-interest who becomes the landlord of the premises as a result of death of such landlord; but does not include a tenant or a sub-tenant who has given premises on license;
(b) an agreement of license in writing shall be conclusive evidence of the fact stated therein.
V R SHROFF
(Expert) 03 January 2012
Mr sheik,
in case you have rental residential accommodation, you have no right to give it in LL Basis. You loose tenant ship also.
If you own house, then yes, but in few states.
If you try in Gujarat State, you loose the house, as rent act apply there.
So if you provide details. can confirm yr requirements .
prabhakar singh
(Expert) 03 January 2012
The definition in Easement Act is as under:
52. "License" defined.- Where one person grants to another, or to a definite number of other persons, a right to do, or continue to do, in or upon the immovable property of the grantor, something which would, in the absence of such right, be unlawful, and such right does not amount to an easement or an interest in the property, the right is called a license.
53. Who may grant license.- A license may be granted by any one in the circumstances and to the extent in and to which he may transfer his interests in the property affected by the license.
54. Grant may be express or implied.- The grant of a license may be express or implied from the conduct of the grantor, and an agreement which purports to create an easement, but is ineffectual for that purpose, may operate to create a license.
55. Accessory licenses annexed by law.- All licenses necessary for the enjoyment of any interest, or the exercise of any right, are implied in the constitution of such interest or right. Such licenses are called accessory licenses.
Illustration
A sells the trees growing in his land to B. B is entitled to go on the land and take away the trees.
56. License when transferable.- Unless a different intention is expressed or necessarily implied, license to attend a place of public entertainment may be transferred by the licensee; but, save as aforesaid, a license cannot be transferred by the licensee or exercised by his servient or agents.
Illustrations
(a) A grants B a right to walk over A's field whenever he pleases. The right is not annexed to any immovable property of B. The right cannot be transferred.
(b) The Government grant B a license to erect and use temporary grain-sheds on Government land. In the absence of express provision to the contrary, B's servants may enter on the land for the purpose of erecting sheds, erect the same, deposit grain therein and remove grain therefrom.
......................................................................................
60. License when revocable.- A license may be revoked by the grantor, unless
(a) it is coupled with a transfer of property and such transfer is in force;
(b) the licensee, acting upon the license, has executed a work of a permanent character and incurred expenses in the execution.
61. Revocation express or implied.- The revocation of a License may be express or implied.
Illustrations
(a) A, the owner of a field, grants a license to B, to use a path across it. A with intent to revoke the license, locks a gate across the path. The license is revoked.
(b) A, the owner of a field, grants a license to B to stack hay on the field. A lets or sells the field to C. The license is revoked.
62. License when deemed revoked.- A license is deemed to be revoked
(a) when, from a cause preceding the grant of it, the grantor ceases to have any interest in the property affected by the license;
(b) when the licensee releases it, expressly or impliedly, to the grantor or his representative;
(c) where it has been granted for a limited period, or acquired on condition that it shall become void on the performance or non-performance of a specified act, and the period expires, or the conditions is fulfilled;
(d) where the property affected by the license is destroyed or by superior force so permanently altered that the licensee can no longer exercise his right;
(e) where the Licensee becomes entitled to the absolute ownership of the property affected by the license;
(f) where the license is granted for a specified purpose and the purpose is attained or abandoned, or becomes impracticable;
(g) where the license is granted to the licensee
63. Licensee’s rights on revocation.- Where a license is revoked, the licensee is entitled to a reasonable time to leave the property affected thereby and to remove any goods which he has been allowed to place on such property.
64. Licensee’s rights on eviction.- Where a license has been granted for a consideration, and the licensee, without any fault of his own, is evicted by the grantor before he has fully enjoyed, under the license, the right for which he contracted, he is entitled to recover compensation from the grantor.
prabhakar singh
(Expert) 03 January 2012
Mr sheik!
One need to be owner to grant license.
A tenant can not grant it.
Maharashtra law is not applicable to.
You need to check your state law.
IF your state does not have law like maharashtra,easement act shall apply.
provisions given above.
