Online Leave & License

  1. What is a Leave and License Agreement?

A Leave and License Agreement is a legal contract wherein the licensor (property owner) grants the licensee (tenant) the right to occupy and use the property for a defined period, under specific terms and conditions. Unlike a lease, this agreement does not transfer any interest or ownership rights in the property.

In India, this type of agreement is governed by the Indian Easements Act, 1882, and is commonly used for:

  • Residential rentals
  • Commercial property use
  • Short-term accommodation

 

  1. Why Choose an Online Leave and License Agreement?

The traditional method of drafting, notarizing, and registering rental agreements can be time-consuming and inconvenient, especially in metropolitan cities. With digital transformation and Aadhaar-enabled services, many Indian states — most notably Maharashtra — have introduced online portals that allow you to complete the entire process digitally.

Benefits of Going Online:

  • No physical visits to government offices
  • Time and cost-efficient
  • Legally valid and court-admissible
  • Secure, transparent, and trackable
  • Eco-friendly and paperless
  • Facilitates remote execution (useful for NRIs and outstation parties)

 

  1. Key Components of a Leave and License Agreement

Whether registered online or offline, the agreement must include:

  • Details of the Licensor and Licensee (Name, Aadhaar, PAN, Address)
  • Property Description (location, type, size, etc.)
  • Purpose of Usage (residential or commercial)
  • Duration of the License (typically 11 months, extendable)
  • Rent and Security Deposit
  • Payment Terms and Due Dates
  • Notice Period for Termination
  • Responsibilities for Maintenance and Utilities
  • Conditions of Renewal or Exit
  • Penalty Clauses (if any)

 

  1. Online Registration of Leave and License Agreements

Is Online Registration Mandatory?

Under Section 17 of the Registration Act, 1908, any lease or license exceeding 11 months must be compulsorily registered. In Maharashtra and some other states, even 11-month agreements are encouraged to be registered online for legal safety.

 

  1. Step-by-Step Process: Online Leave and License Agreement (Maharashtra Model)

Maharashtra is a pioneer in online registration, offering a robust platform at https://efilingigr.maharashtra.gov.in. Here’s how you can register an agreement:

Step 1: Visit the Official Portal

  • Go to the Department of Registration & Stamps, Maharashtra.
  • Choose the option for “Online Leave and License Registration.”

Step 2: Enter Details

  • Fill out the form with the details of:
    • Licensor and licensee
    • Property address
    • Rent amount
    • Duration of agreement
    • Payment cycle
    • Terms and conditions

Step 3: Upload Documents

  • Aadhaar Card (for Authentication)
  • PAN Card
  • Passport-sized photo (digital)
  • Property ownership proof (like electricity bill or index II)

Step 4: Pay Stamp Duty and Registration Fee

  • Stamp Dutu is calculated according to the period of Agreement, Rent and Deposit Amount
  • Registration charges are nominal (typically ₹1,000 for online).

Step 5: Biometric or Aadhaar-based Authentication

  • Biometric data collection through a licensed vendor, or
  • Aadhaar authentication for both parties

Step 6: Generate and Download Registered Agreement

  • Once verified, the agreement is digitally signed and stored securely.
  • You can download the digitally registered agreement for your records.

 

  1. Legal Validity of Online Leave and License Agreements

Online agreements, once registered, hold the same legal standing as physically registered documents. They are:

  • Admissible in courts
  • Legally enforceable
  • Accepted by banks, courts, and government bodies

Always ensure the registration is done through authorized portals and not through unverified third parties.

Author: Nyaya Setu Legal Association
Disclaimer: This article is intended for informational purposes only and does not constitute legal advice. For specific legal assistance regarding online leave & license, please consult us for more option.

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