Response

A leave and license agreement is valid in the State of Telangana. However, it is better to go for a rent agreement. Licence is defined in section 52 of the Indian Easements Act, 1882 which states that 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.

A licence granted by the owner enables a licensee a right to do or continue to do certain specified things in or upon an immovable property. The tenure is mostly fixed for 11 months and it is to be mentioned clearly.

The HonÕble Supreme Court has held that if a document gives only a right to use the property in a particular way or under certain terms, while it remains in the possession and control of the owner thereof, it will be a license. Basically, no interest in the property is transferred to the tenant. You have to get the agreement registered.

Reference:

20210027202100246594

LAWAYZ-2023-391