What is the difference of Lease/Rent/License Deed ?
Guest
(Querist) 04 August 2010
This query is : Resolved
I am an owner of a property ,wanna rent out it,but concerned of recovery of possession from tenants--plz. guide which is best for me Lease/Rent/License Deed ?.
Devajyoti Barman
(Expert) 05 August 2010
Leave and License is always the best as it does not create any interest in the property by the occupier.
Daksh
(Expert) 05 August 2010
Dear Anonymous,
Some points which are important are as follows:
TERMINATION:
In Lease it is either termination which happens prior to the period or on expiry of term on efflux of time, there is a pre-condition to issue notice as per Section 104 to 106 of TPA. In lease after termination if the tenant continues to occupy the tenancy premises, he is held as "tenant holding over" Section 116 TPA, and cannot be thrown out of the premises without due process of law.
In License the occupant becomes a rank tresspasser and has no right as holding over rights and becomes the occupant on sufference.
POSSESSION:
In Lease if a person creates any artifact or fixture of permanent nature, the person, only owns the same and the lease does not become irrevocable. However, in case of License, where the user right of a land is provided and the person makes some fixture of permanent nature, the License becomes irrevocable (Section 62 Easement Act).
LITIGATION:
In Lease, where possession is sought back, the court fees is paybale on the annual rent (Court Fee's Act).
In License, where right is deteremined, the court fees is payable on the market value of the property (Court Fees Act). License is a right of a person over a property.
However, in License, there is a general tendency, where licensors file a suit for permanent and manadatory injunction, seeking reliefs to the extent that the Licensee stop the user of the premises and a direction against licensee to remove its articles and artifacts from the premises.
RIGHT:
In Lease, the right is passed on to Legal Heirs.Lease is a right of a property vested in a person.
In License, it is not.License is a right of a person over a property.
As it is evident on the basis of above facts I do fully concur with the view point of my learned collegue Mr.Devajyoti Barman.
Best Regards
Daksh
niranjan
(Expert) 05 August 2010
Very good Mr. Daksh.
