Understanding the Critical Distinction Between License and Lease
Property owners in Pune often ask why residential properties are almost universally leased under a "Leave and License" agreement rather than a "Lease Deed." The distinction is profound in property jurisprudence: a lease creates a transfer of interest in the immovable property, whereas a license merely permits temporary permissive occupancy without conferring property rights.
KOKJAGUAR Consultancy structures tenancy contracts to provide maximum legal security for owners and tenants. Consult our legal tenancy desk or view our registered rent agreement guide.
Head-to-Head Legal Comparison
| Parameter | Leave and License (Sec 24) | Lease Deed (Transfer of Property Act) |
|---|---|---|
| Interest in Property | No interest created; purely personal privilege to occupy. | Demise of property; transfers legal interest and possession. |
| Eviction Remedy | Summary eviction proceedings before the Competent Authority. | Protracted civil court trial for possession. |
| Subletting Rights | Strictly prohibited; license cannot be assigned or transferred. | Lessee may sublet unless explicitly barred in the deed. |
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