Act Comparison
Lease Agreement vs Leave & License Agreement
A lease transfers an interest in the property under the Transfer of Property Act, 1882. A leave and license grants only permission to use it, under the Indian Easements Act, 1882. A lease carries higher stamp duty and stronger tenant protection — ending it needs a court order — which is why most Indian residential rentals are written as leave and license instead.
| Aspect | Lease Agreement | Leave & License Agreement |
|---|---|---|
| Legal Nature | Transfer of interest in property | Permission to use — no transfer of interest |
| Governing Law | Transfer of Property Act, 1882 | Indian Easements Act, 1882 |
| Duration | Usually 11+ months or long-term | Usually 11 months (renewable) |
| Stamp Duty | Higher — based on lease value | Lower |
| Registration | Mandatory above 12 months | Mandatory above 12 months (Maharashtra: all) |
| Tenant Protection | Higher — harder to evict | Lower — easier for licensor to terminate |
| Common Use | Commercial properties, long residential | Most residential rentals in India |
| Eviction Process | Court order required (slow) | Can terminate as per notice period |