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eSign Your Leave and License Agreement Online

Landlord and tenant sign with Aadhaar OTP from anywhere in India. Legally valid under Section 3A of the IT Act 2000. ₹15 per signature.

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By Vikram Reddy, Real Estate Legal Advisor·Last updated April 2026
eSign your leave and license agreement
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What is a Leave and License Agreement?

A leave and license agreement is the most common residential rental document in India. Unlike a lease (which transfers an interest in the property), a license only grants the licensee (tenant) permission to occupy and use the premises for a defined period without creating any tenancy rights. This distinction matters enormously in Indian law because it determines whether state Rent Control Acts apply, and whether the occupier can claim protection against eviction.

The structure is simple: the owner of the property (the licensor) allows another person (the licensee) to stay in the premises for an agreed period in exchange for a monthly license fee. Because no tenancy interest is created, the owner retains full rights and can reclaim the property at the end of the term without the usual eviction hurdles. This is why almost every urban residential rental in Mumbai, Pune, Bangalore, Delhi, and other metros is structured as a leave and license rather than a lease.

Traditionally these agreements are drafted on stamp paper, signed by both parties in physical presence, and sometimes witnessed. With Aadhaar eSign, the entire signing process moves online. The landlord and tenant each receive a link, sign with an Aadhaar OTP, and the final signed PDF is delivered to both parties within minutes. The underlying stamp duty and registration requirements do not change, but the signing friction disappears.

Who needs a leave and license agreement?

Individual landlords

Rent out your flat or house without asking the tenant to come over for signing. Both parties sign from their own city in under 10 minutes.

Tenants

Review and sign your rental agreement from your phone. No need to print, scan, or visit the landlord for signatures.

Property managers and agents

Handle multiple rental agreements for different clients from one dashboard. Speed up closings without juggling printouts.

PG and co-living operators

Onboard residents quickly with standardized agreements. Each new tenant signs digitally before move-in.

Legal framework

Legally valid under Indian law

Leave and license agreements are fully eligible for Aadhaar eSign under Section 3A of the IT Act, 2000. They are not conveyances of immovable property, so they do not fall under the Schedule I exclusions of the IT Act. The agreement becomes legally binding the moment both parties sign. However, two important state-level requirements remain unchanged by digitization. First, stamp duty must be paid on the appropriate stamp paper (or e-stamp) before or at the time of signing. Stamp duty varies by state: Maharashtra charges 0.25% of the total rent plus deposit, Karnataka charges around 0.5%, Delhi uses a slab system. Second, for agreements in Maharashtra exceeding 11 months, Section 55 of the Maharashtra Rent Control Act, 1999 mandates registration at the Sub-Registrar's office within 4 months of execution. Registration is a physical process and is not replaced by eSigning. The standard workaround used across India is to keep the term at 11 months exactly and then renew, which legally avoids the registration requirement while still giving both parties a documented arrangement. The eSigned PDF remains valid evidence in court under Section 65B of the Indian Evidence Act.

Primary reference: Section 3A IT Act 2000 + Maharashtra Rent Control Act 1999 (Section 55)

Important note

Stamp duty and, where applicable, registration are state-law requirements that eSign does not replace. For terms longer than 11 months in Maharashtra, registration with the Sub-Registrar is mandatory under Section 55 of the Maharashtra Rent Control Act 1999. Most landlords use an 11-month term to avoid this.

Essential clauses

  • Names, addresses, and Aadhaar / PAN of the licensor and licensee
  • Complete description of the licensed premises with address and area
  • License period (start and end date, commonly 11 months)
  • Monthly license fee, due date, and mode of payment
  • Security deposit amount and refund conditions
  • Permitted use of the premises (residential or commercial)
  • Maintenance, utility, and society charges responsibility
  • Lock-in period and termination notice requirements
  • Rules on alterations, subletting, and handover condition

Ready to eSign your leave and license agreement?

Drop your PDF and get it signed with Aadhaar in 2 minutes. Landlord + tenant = ₹30 total.

Upload PDF now

Common mistakes

Using a term longer than 11 months without registering the agreement, which in Maharashtra makes the document unenforceable under Section 55
Skipping the lock-in period, leaving both parties exposed to early termination without compensation
Forgetting to pay stamp duty or using a ₹20 stamp paper when the state requires a percentage calculation
Not clearly stating the security deposit refund timeline, which causes the vast majority of end-of-tenancy disputes
Writing the agreement as a lease instead of a license, accidentally invoking Rent Control Act protection for the tenant
Missing a handover clause describing the expected condition of the premises at the end of the term

How to eSign online

  1. 1

    Upload the agreement PDF

    Draft the agreement on appropriate stamp paper or e-stamp, save as PDF, and upload it to SignSetu.

  2. 2

    Add the landlord and tenant by email

    Enter the name and email for both parties. Each receives a secure signing link instantly.

  3. 3

    Both parties verify with Aadhaar OTP

    Landlord and tenant each sign independently with an Aadhaar OTP. The fully signed PDF is delivered to both inboxes.

FAQs

Is an eSigned leave and license agreement legally valid in India?
Yes. Under Section 3A of the IT Act 2000, Aadhaar eSign is legally equivalent to a handwritten signature. Leave and license agreements are not excluded under Schedule I, so they can be fully executed online.
Why is the term usually 11 months and not one year?
Under Section 55 of the Maharashtra Rent Control Act 1999 and similar state laws, any leave and license agreement exceeding 11 months requires compulsory registration at the Sub-Registrar's office. Keeping the term at 11 months legally avoids this requirement.
Do I still need to pay stamp duty if I eSign?
Yes. Stamp duty is a state-level tax and is independent of how the document is signed. Pay stamp duty via e-stamp (from SHCIL or state portals) before signing, then upload the stamped PDF.
Does eSign replace physical registration at the Sub-Registrar?
No. Registration is a separate physical process where both parties appear before the Sub-Registrar. eSign handles only the signatures. For 11-month agreements, registration is not required, so eSign is a complete solution.
Can I use SignSetu for a commercial rental?
For purely commercial premises, use our commercial lease agreement page. Leave and license is typically used for residential rentals and some small commercial arrangements.
What if the tenant does not have an Aadhaar card?
Aadhaar eSign requires the signer to have an Aadhaar number linked to an active mobile. Tenants without Aadhaar cannot use this method, but can still sign a physical copy of the same agreement.

On this page

What is a Leave and License Agreement?Who needs a leave and license agreement?Legal frameworkEssential clausesCommon mistakesHow to eSign onlineFAQs

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Every signature is processed via eMudhra, a CCA-licensed eSign Service Provider (ESP) authorized under the IT Act, 2000.

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