Rent / leave-and-licence agreement for a shop (11 months)

Template for general guidance; not legal advice. Check stamp duty and registration rules in your state. LEAVE AND LICENCE AGREEMENT FOR A SHOP (11 MONTHS) This agreement is made at Place of signing on Date of agreement between: Owner (licensor): full name, son/daughter of Owner: father's or mother's name, living at Owner: address, the owner of the shop (called "the Owner"); and Shopkeeper (licensee): full name or firm name, son/daughter of Shopkeeper: father's or mother's name (for an individual), of Shopkeeper: address (called "the Shopkeeper"). The Owner is the lawful owner of the shop at Full address of the shop, about Area of the shop (sq ft) sq ft (called "the Shop"). The Shopkeeper has asked to use the Shop, and the Owner has agreed, on the terms below. 1. Permission to use. The Owner gives the Shopkeeper permission (licence) to use the Shop only for Shop will be used for. Possession in law stays with the Owner. 2. Period. The period is 11 months, from Start date to End date (11 months later). The agreement ends on its own at the end of this period unless both sides sign a fresh agreement. 3. Monthly fee. The Shopkeeper will pay ₹Monthly rent / licence fee (₹) per month, in advance, by the Rent due by (day of each month)th day of each month, by Mode of payment. The Owner will give a receipt for every payment. 4. Security deposit. The Shopkeeper has paid ₹Security deposit (₹) as an interest-free security deposit. The Owner will return it when the Shopkeeper hands back the Shop, after deducting only unpaid rent, unpaid bills and the cost of repairing damage beyond normal wear and tear, with a written account of any deduction. 5. Bills. Electricity, water and maintenance charges will be paid by Electricity, water and maintenance paid by. Property tax will be paid by the Owner. 6. Use and care. The Shopkeeper will: (a) use the Shop only for the purpose in clause 1 and follow all laws, including getting any trade licence the business needs; (b) not store anything illegal, dangerous or inflammable beyond normal shop stock; (c) keep the Shop clean and in good condition, and do minor day-to-day repairs at his or her own cost; (d) not make any structural change without the Owner's written consent; (e) not sublet, share or give the Shop to anyone else. 7. Repairs by the Owner. Major repairs to the structure, roof and main wiring will be done by the Owner. 8. Inspection. The Owner may inspect the Shop at a reasonable time after giving one day's notice. 9. Lock-in and early ending. Neither side may end this agreement in the first Lock-in period (months) months. After that, either side may end it by giving Notice to end early (days) days' written notice. 10. Ending for breach. If the Shopkeeper does not pay the monthly fee for two months in a row, or breaks clause 6, the Owner may end this agreement by giving 15 days' written notice. 11. Handing back. On the last day, the Shopkeeper will remove his or her goods and hand back the Shop with these fittings in good condition: Fittings handed over with the shop. 12. Renewal. If both sides wish to continue, they will sign a fresh agreement. The monthly fee on renewal will be increased by Increase in rent on renewal (%)% unless agreed otherwise. 13. Stamp duty and registration. The stamp duty and any registration charges for this agreement will be paid by Stamp duty and registration cost paid by. 14. Disputes. Any dispute will be subject to the courts at Place of signing. Signed on the date and at the place written above. Owner: ______________________ (Owner (licensor): full name) Shopkeeper: ______________________ (Shopkeeper (licensee): full name or firm name) Witnesses: 1. Witness 1: name and address Signature: ______________________ 2. Witness 2: name and address Signature: ______________________

Know before you sign

Why 11 months: section 17(1)(d) of the Registration Act, 1908 makes registration compulsory for leases of immovable property from year to year, for any term exceeding one year, or reserving a yearly rent (as quoted by the Supreme Court in Siri Chand v. Surinder Singh, 2020). An agreement of 11 months keeps the term under one year.

Calling a document a 'licence' does not decide what it is. A court looks at the real terms, so do not rely on the title alone.

Some states have their own rules for short agreements too. For example, Maharashtra's Department of Registration and Stamps runs online e-registration for leave-and-licence agreements. Check what your state requires before you sign.

Stamp duty is set by each state and is often worked out on the rent and deposit. Buy stamp paper or an e-stamp of the right value in the name of one of the parties.

Both parties sign every page; two witnesses are usual. Keep a copy each, with the owner's ID and proof of ownership (sale deed, property tax receipt or latest electricity bill in the owner's name).

See a lawyer if the shop is in a building with a dispute, a bank mortgage or more than one owner, or if you plan to spend a lot on interiors.

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