Lease vs. License vs. Rent: Unveiling the Best Option for Your Property pen_spark

Disputes between landlords and tenants have long been a concern across the country. While minor issues like amenities provision are manageable, the possession of the property remains a critical issue. Landlords have turned to rent agreements, yet disputes over possession persist. To address this, landlords are increasingly opting for lease and licence agreements, which have slight modifications in their clauses.

Property expert Pradeep Mishra elaborates on the process and benefits of creating a lease and licence agreement. These agreements, whether for rent or lease, are designed to protect the landlord's interests and prevent unauthorized occupation by tenants. They specify the purpose and duration of property use, typically ranging from 11 months to several years. Residential properties cannot be used for commercial purposes, and tenants must vacate if the agreement is not renewed.

In a lease and licence agreement, the landlord is termed the licensor, and the tenant, the licensee. Such agreements can range from as short as 10-15 days to as long as 10 years and can be made on stamp paper through a notary. Registration becomes mandatory for terms exceeding 12 years due to state jurisdiction, with registration fees typically ranging from one to two per cent of the rent.

The key distinction lies in the assertion of rights over the property. A lease and licence agreement explicitly states that the tenant will not claim any rights, ensuring the landlord's ownership remains intact even during temporary occupation. Additionally, in case of a party's demise, their successor can continue the agreement with mutual consent.

April 29, 2024 10:21 p.m. 126

#trending #latest #BUSINESSPROPERTY#REAL ESTATE