Leave and License Agreement in Pune [2026 Guide]

A leave and license agreement in Pune is the standard document used to let a residential or commercial property in the city. Unlike a rental lease that creates tenancy rights, a leave and license arrangement gives a licensee the right to use the property without transferring any interest in it. Because Pune is one of Maharashtra's busiest real estate markets, with strong demand from IT employees, students, and startups, the leave and license agreement has become the default way to document most short to medium term rentals.

This guide explains how a leave and license agreement works in Pune, the stamp duty and registration rules under Maharashtra law, and the clauses that every tenant and landlord should check before signing in 2026.

What is a leave and license agreement?

A leave and license agreement is a contract under which the owner of a property, called the licensor, grants another person, called the licensee, permission to occupy and use the property for a defined period. The licensee does not acquire any interest in the property itself. When the license period ends, the licensee must vacate.

This is different from a lease, which creates an interest in the property and can bring the tenant under protective rent control laws. Licensors prefer leave and license agreements because they keep control of the property and avoid long term tenancy claims.

Why Pune uses leave and license agreements

Pune is home to a large migrant population of IT professionals, students, and families. Most landlords in Kothrud, Baner, Hinjewadi, Wakad, Viman Nagar, Aundh, and Hadapsar prefer the leave and license structure because:

• It gives them a clear right to take back the property at the end of the term.
• It keeps them outside most of the restrictive provisions of older rent control laws.
• It is fully recognised under the Maharashtra Rent Control Act 1999.
• It is quick to register and enforce.

For tenants, a leave and license agreement is a clear, time bound arrangement that is easy to understand.

Legal framework in Maharashtra

The leave and license agreement in Pune is governed primarily by the Maharashtra Rent Control Act 1999. Section 55 of the Act makes it mandatory for the licensor to register the leave and license agreement. Failure to register can attract a fine of up to INR 5,000 and imprisonment up to three months, and the terms stated by the licensor become unenforceable if the tenant later disputes them.

The Indian Easements Act 1882 also recognises the concept of a license. Stamp duty on leave and license agreements in Maharashtra is governed by Article 36A of the Maharashtra Stamp Act.

Stamp duty on leave and license agreements in Pune

Stamp duty in Maharashtra is calculated using a formula that factors in the monthly rent, the refundable security deposit, the term of the agreement, and the location of the property. For leave and license agreements up to 60 months (5 years), the stamp duty is 0.25 percent of the total rent for the period plus a notional interest component on the deposit.

A simplified version of the calculation is:

Stamp duty = 0.25 percent of (total rent for the period + 10 percent of refundable deposit x number of years)

In addition to stamp duty, a registration fee applies. The registration fee in urban areas like Pune is INR 1,000, and in rural areas it is INR 500.

These rates are updated from time to time by the Maharashtra government. Always confirm the latest rates on the official IGR Maharashtra portal before paying.

Registration of leave and license agreements in Pune

In Pune, leave and license agreements are registered through the Sub Registrar office under the jurisdiction in which the property is located. Maharashtra also allows online registration through the e registration facility provided by the Department of Registration and Stamps. Under the e registration system, the licensor, licensee, and two witnesses can complete the registration from home using biometric authentication through a citizen service centre or authorised service provider.

Documents required for registration typically include:

• Draft leave and license agreement on stamp paper of the correct value (or e stamp).
• Identity and address proof of licensor, licensee, and witnesses (Aadhaar, PAN, passport).
• Property documents such as index II, 7/12 extract, or property tax receipt.
• Photographs of both parties.
• Biometric fingerprint capture.

Under the Registration Act 1908, a leave and license agreement exceeding 11 months must be registered. Even agreements of 11 months or less must be registered in Maharashtra because of the Maharashtra Rent Control Act requirement mentioned above.

Key clauses in a Pune leave and license agreement

A well drafted leave and license agreement should contain the following clauses:

1. Parties

Full names, addresses, PAN, and Aadhaar numbers of the licensor and licensee.

2. Property description

Full address, carpet area, number of rooms, and any annexures such as parking space or furniture list.

3. License period

Usually 11 months or 33 months, with renewal options if the parties want to continue.

4. License fee

The monthly amount payable, due date, and the mode of payment. Most agreements now specify bank transfer.

5. Security deposit

The refundable amount, usually two to ten months of rent depending on the area, and the conditions under which the deposit can be withheld or adjusted.

6. Maintenance and utilities

Who pays society maintenance, electricity, water, and internet. In most Pune societies, the licensee pays utilities while the licensor pays society maintenance, but practice varies.

7. Permitted use

Residential or commercial. If residential, the number of people who can occupy the property.

8. Restrictions

No subletting, no structural alterations, and no illegal use.

9. Lock in period

A minimum period during which neither side can terminate, often three or six months.

10. Termination and notice

How much notice either side must give, usually 30 to 60 days. The consequences of early termination within the lock in period.

11. Condition and inspection

How the property will be handed over at the start and returned at the end. A photograph based inventory is good practice.

12. Dispute resolution

Jurisdiction in Pune courts, with an option for arbitration under the Arbitration and Conciliation Act 1996.

13. Governing law

Indian law, specifically the Maharashtra Rent Control Act 1999.

Practical tips for 2026

• Verify property documents. Ask for the latest index II and property tax receipt before signing.
• Check society NOC. Some housing societies in Pune require a no objection certificate before a licensee can move in.
• Match names with Aadhaar. Name mismatches can block e registration.
• Pay by bank transfer. It creates a clean paper trail for both sides.
• Keep a copy. Store a PDF of the signed and registered agreement on your phone.

Frequently asked questions

Is a leave and license agreement different from a rental agreement?

Yes. A leave and license agreement gives the licensee permission to use the property without creating a tenancy interest. A rental agreement can create tenancy rights and bring the parties under rent control.

Is registration mandatory in Pune?

Yes. Under the Maharashtra Rent Control Act 1999, every leave and license agreement in Maharashtra, including Pune, must be registered. Failure to register can attract penalties.

What is the typical stamp duty in Pune?

Stamp duty is 0.25 percent of the sum of total rent for the period plus 10 percent of the refundable deposit times the number of years. Always verify the current rate with the IGR Maharashtra portal.

Can a leave and license agreement be signed online?

Yes. The agreement can be executed electronically using Aadhaar eSign under Section 3A of the IT Act 2000. Registration can be done through the Maharashtra e registration system.

What happens if the licensee does not vacate?

The licensor can apply to the Competent Authority under Section 24 of the Maharashtra Rent Control Act 1999 for a summary eviction, which is faster than a civil suit.

Execute your Pune leave and license agreement on SignSetu

Drafting is the easy part. Getting both sides to sign should not hold up your move in date. SignSetu lets licensor, licensee, and witnesses sign the leave and license agreement online with Aadhaar eSign, with full legal validity across Maharashtra.

Start at SignSetu Leave and License Agreement eSign.