Please explain terms like lease, leave, license agreement.

Q: I want to get into real estate business but I'm confused about few terms like lease, leave, license agreement, etc. Could you please explain them to me? Thank you.

Anuj Gupta, Mumbai

1st October 2011

Other in Mumbai

lease

leave

license agreement.

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A lease is a contractual agreement on immoveable property for the buyer to pay to the owner and use it for the time being. It is is defined under Section 105 of The Transfer of Property Act,1882. A stamp duty and registration fees has to be paid for lease deed. The stamp duty payable on lease is more than on Leave and Licence for a period upto three years. License agreement is a legally bound contract between owner and buyer to use a property for a capital. A licence is defined in Section 52 of the Indian Easement Act,1882.