Which rent agreement should you sign in India: 11-month, leave and license, or lease

General information, not legal advice. Tenancy and registration rules are set by each state and change. Ask a local lawyer or the sub-registrar's office before you sign.

What are the main types of rental agreement in India?

There are three you will meet most. A short rent agreement, often written for 11 months, is the everyday choice for homes. A leave and license agreement gives the occupier permission to use the home without creating a tenancy, and is common in some states, especially in the west of India. A registered lease is a longer, formal agreement, more often used for commercial space or long residential terms. Which names and forms are used depends on the state.

Why is an 11-month agreement so common?

In general, a lease of a year or more must be registered, which brings registration charges and stamp duty into it. A term below that can often be done on stamp paper without registering, so many owners and tenants use 11 months and renew. Check the rule in your state, and see stamp duty and registration charges for how the charges work.

What is the difference between rent, leave and license, and lease?

• Rent agreement: a tenancy for a stated period, usually with a rent, a deposit and a notice period. Some tenant protections under local rent laws may apply.
• Leave and license: a licence to occupy for a fixed period. The licensor keeps possession in law, and the tenant-protection rules may not apply in the same way.
• Lease: a longer transfer of the right to use the property for a stated term, normally registered.

What should any rental agreement contain?

1. The full names and addresses of the owner and the tenant, and the address of the property.
2. The start date, the term and how it can be renewed or ended.
3. The rent, the due date, how it is paid and how it can change at renewal.
4. The deposit, what can be deducted and when it is returned.
5. Who pays for maintenance, repairs, utilities and society charges.
6. The notice period and the lock-in, if any, for both sides.
7. Rules on sub-letting, use of the home and the number of occupants.
8. Signatures of both sides and, where needed, witnesses.

Should I register the agreement?

Registration gives a stronger record if there is a dispute and is required for longer terms. Even an unregistered short agreement is worth having, because it records what you both agreed. Read rental agreement questions and security deposit in India, and start your search with homes for rent.