Document background
The License Rental Agreement serves as a crucial legal instrument in the Indian real estate market, providing a flexible alternative to traditional lease arrangements. This document type is particularly useful when property owners wish to retain greater control over the property while granting occupancy rights to users. Under Indian law, a license creates no interest in the property, unlike a lease, making it preferable for temporary or conditional arrangements. The agreement typically covers commercial terms, permitted use, duration, payment schedules, and operational guidelines, while ensuring compliance with the Transfer of Property Act, 1882, and state-specific property laws. It's commonly used for commercial spaces, co-working facilities, and short-term occupancy arrangements where the licensor wishes to maintain ultimate control over the property.
