Templates / Rent Agreement

Rent Agreement (11-Month Leave & Licence)

11-month Leave & Licence agreement template for India. Free PDF with essential clauses. eSign with Aadhaar for ₹15.

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What is a Rent Agreement?

A rent agreement (or Leave & Licence agreement) is a legal contract between a property owner (Licensor) and a tenant (Licensee) that grants the right to use a property for a specified period in exchange for periodic payment. In India, most residential rental arrangements use an 11-month Leave & Licence format rather than a lease deed. This is because under the Transfer of Property Act, 1882, a lease of 12 months or more must be registered with the Sub-Registrar, which involves additional cost and documentation. A Leave & Licence agreement, governed by the Indian Easements Act, 1882, does not create a tenancy interest in the property — the licensee gets permission to use the property but no legal right to possess it, making eviction simpler for the owner.

Essential Clauses in a Rent Agreement

Names and addresses of Licensor (landlord) and Licensee (tenant)
Property description and address
Monthly rent/licence fee amount and payment date
Security deposit amount and refund terms
Duration of agreement (typically 11 months)
Purpose of use (residential/commercial)
Maintenance and repair responsibilities
Termination notice period (typically 1–2 months)
Restrictions on subletting, alterations, and use
Renewal terms and rent escalation clause

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Stamp Duty & Registration

Stamp duty for rent agreements varies significantly by state. Maharashtra charges 0.25% of the total consideration, Karnataka charges ₹200 (fixed) for 11-month agreements, Delhi charges ₹50 (fixed), and most other states have their own rates. E-stamp paper is available in all major states through SHCIL-authorised vendors. The stamp duty must be paid even if the agreement is eSigned — the eSign authenticates the parties, while the stamp duty makes the document admissible as evidence under the Indian Stamp Act, 1899.

Registration: Mandatory in Maharashtra for all durations. In most other states, mandatory only for leases of 12 months or more. 11-month agreements avoid mandatory registration in most states.

Can a Rent Agreement Be Signed with Aadhaar eSign?

Yes. Rent agreements can be signed using Aadhaar eSign under Section 3A of the IT Act, 2000. The electronic signature is legally valid and the signed PDF serves as the executed agreement. However, the agreement must still be executed on e-stamp paper of the correct denomination as per your state's stamp duty rules. The eSign covers the authentication of the parties — stamp duty is a separate requirement for the document to be admissible as evidence.

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Common Mistakes to Avoid

✗Using a lease deed format when a Leave & Licence format is appropriate — they have different legal implications under the Transfer of Property Act
✗Not specifying whether the deposit is refundable and under what conditions
✗Omitting the notice period for termination by either party
✗Not getting the agreement on proper stamp paper — unstamped agreements are inadmissible as evidence
✗Using a generic template without state-specific clauses (Maharashtra requires registration even for 11-month agreements)
✗Not clearly distinguishing between rent, maintenance charges, and other payments

Frequently Asked Questions

Why are most rent agreements for 11 months?

Under the Registration Act, 1908, leases of 12 months or more must be registered with the Sub-Registrar. An 11-month agreement avoids this mandatory registration requirement in most states (except Maharashtra, where registration is mandatory for all durations). The agreement can be renewed after expiry.

Is an eSigned rent agreement legally valid?

Yes. Under Section 3A of the IT Act, 2000, documents signed with Aadhaar eSign have the same legal validity as physically signed documents. However, the agreement should also be on proper stamp paper to be admissible as evidence.

What is the difference between a rent agreement and a lease deed?

A rent/Leave & Licence agreement grants permission to use a property without creating a tenancy interest — the licensee has no legal right to possess the property. A lease deed under the Transfer of Property Act creates a tenancy interest and must be registered if for 12 months or more. Most residential rentals in India use the Leave & Licence format.

Do I need witnesses for a rent agreement?

While not strictly mandatory for validity, having two witnesses is strongly recommended and required for registration in most states. Witnesses strengthen the evidentiary value of the agreement.

Can I use this template for commercial property?

Yes, with modifications. Commercial leases may need additional clauses covering permitted business activities, signage rights, fire safety compliance, and different stamp duty rates in some states.

Disclaimer

This template is for informational and reference purposes only and does not constitute legal advice. Laws and regulations change periodically. This template may need modification based on your specific circumstances and state laws. Consult a qualified legal professional before executing any legal document. For stamp duty requirements, verify current rates with your state's registration department. SignSetu is not responsible for any consequences arising from the use of this template. Last updated: April 2026.

Governing Law: Transfer of Property Act, 1882 & Indian Stamp Act, 1899 (Section 105–117 (Leases))

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What is a Rent Agreement?

Essential Clauses in a Rent Agreement

Names and addresses of Licensor (landlord) and Licensee (tenant)

Property description and address

Monthly rent/licence fee amount and payment date

Security deposit amount and refund terms

Duration of agreement (typically 11 months)

Purpose of use (residential/commercial)

Maintenance and repair responsibilities

Termination notice period (typically 1–2 months)

Restrictions on subletting, alterations, and use

Renewal terms and rent escalation clause

Stamp Duty & Registration

Registration: Mandatory in Maharashtra for all durations. In most other states, mandatory only for leases of 12 months or more. 11-month agreements avoid mandatory registration in most states.

Can a Rent Agreement Be Signed with Aadhaar eSign?

Common Mistakes to Avoid

✗Using a lease deed format when a Leave & Licence format is appropriate — they have different legal implications under the Transfer of Property Act

✗Not specifying whether the deposit is refundable and under what conditions

✗Omitting the notice period for termination by either party

✗Not getting the agreement on proper stamp paper — unstamped agreements are inadmissible as evidence

✗Using a generic template without state-specific clauses (Maharashtra requires registration even for 11-month agreements)

✗Not clearly distinguishing between rent, maintenance charges, and other payments