Property Plus
Bangalore
Chennai
Hyderabad
Kochi
Malabar
Thiruvananthapuram
Lease, rental, leave and licence
The lease or rental agreement of any residential or commercial building is the key document of tenancy which outlines important issues of occupancy, such as the length of tenancy, amount of rent and deposits the tenant must pay, responsibility towards payment of utilities, whether the tenant may sub-let the property, the landlord’s access to the property and the fixtures which the tenant may have right to alter.
Often, the terms are misunderstood. An agreement must necessarily be in written, as oral agreements may often result in a dispute.
The biggest difference in a rental and a lease agreement is the period of occupancy. A written rental agreement is usually for a very short duration, and is automatically renewed after the end of the period, unless the landlord or the tenant ends it by giving a written notice, typically within a period of 30-60 days. If the rent is being paid monthly, the landlord can change the terms of the agreement through a proper written notice, subject to any rent control laws.
A written lease agreement, on the other hand, gives the right to occupy a rental unit for a set term, if the tenant pays the rent and complies with other lease provisions. Unlike a rental agreement, a lease agreement does not get automatically renewed when the lease period expires. Also, during the fixed term of the lease, the landlord cannot increase the rent or change other terms agreed upon in the lease.
Leave and licence is just a licence to make use of the premises of a rented accommodation. The licensee is not a tenant. Thus the protection which is available to a lessee is not available to a landlord as he does not have much hold on the lessee. If there is no written or registered agreement, the contention of the licensee with regard to the terms and conditions of the agreement on which the licence is granted shall prevail unless it is proved otherwise. It is, however, mandatory that the licensee, on expiry of the licence, vacate the premises. ‘Leave and licence’ and ‘lease’ are not the same thing. In the case of a ‘lease’, the rights in the property and right to enjoy the property are transferred to the lessee. However, in the case of leave and licence, there is only a licence to use the property and all rights are reserved by the licensor.
R. BALAJI
Printer friendly
page
Send this article to Friends by
E-Mail
Property Plus
Bangalore
Chennai
Hyderabad
Kochi
Malabar
Thiruvananthapuram
|
