The Licensor And Licensee In Rent Agreement is a crucial legal document used in the Indian property market when a property owner (licensor) grants permission to another party (licensee) to use their property for a specified period in exchange for a license fee. This arrangement is particularly common in commercial and residential property transactions across India, offering more flexibility than traditional lease arrangements. The agreement must comply with various Indian laws including the Transfer of Property Act, 1882, state-specific rent control acts, and registration requirements. It typically includes detailed terms about property usage, payment terms, maintenance responsibilities, and termination conditions. This format is often preferred in situations where parties want to avoid creating tenancy rights while maintaining a formal property usage arrangement.
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1. Parties: Identification and details of the Licensor and Licensee, including full names, addresses, and contact information
2. Background: Brief context about the property and the parties' intention to enter into a rental arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Details: Complete description of the licensed premises including address and specific areas covered
5. Term and Renewal: Duration of the license, commencement date, and renewal terms
6. License Fee and Payment Terms: Amount of rent, payment schedule, mode of payment, and late payment consequences
7. Security Deposit: Amount, payment terms, conditions for refund, and deductions
8. Utilities and Maintenance: Responsibility for utility payments, maintenance obligations of both parties
9. Permitted Use: Specified purpose for which the property can be used
10. Licensee's Obligations: Key responsibilities and restrictions on the licensee
11. Licensor's Obligations: Key responsibilities and commitments of the licensor
12. Termination: Grounds for termination, notice periods, and consequences
13. Return of Property: Conditions for property handover at the end of the term
14. Governing Law: Specification of Indian law as governing law and jurisdiction
15. Notices: Process and addresses for serving official notices
16. Execution: Signature blocks and witness details
1. Lock-in Period: Defines minimum commitment period, used when parties want to ensure stability
2. Fit-out Works: Terms for any modifications or improvements, relevant for commercial properties
3. Sub-licensing: Terms regarding sub-licensing rights, if permitted
4. Insurance: Insurance requirements, particularly relevant for commercial properties
5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant post-COVID
6. GST Compliance: Required for commercial rentals where GST is applicable
7. Parking Rights: Details of parking arrangements if relevant to the property
8. Building Rules: Reference to society/building regulations, relevant for apartments
1. Schedule 1 - Property Description: Detailed description of the property including floor plan and boundaries
2. Schedule 2 - Inventory List: List of furniture, fixtures, and fittings provided with the property
3. Schedule 3 - Payment Schedule: Detailed breakdown of all payments including rent escalation schedule
4. Schedule 4 - House Rules: Specific rules and regulations regarding property usage
5. Appendix A - Property Photographs: Documentation of property condition at time of handover
6. Appendix B - Required Documents: Copies of necessary ID proofs, ownership documents, and other required certificates
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Residential Property
Commercial Property
Retail
Hospitality
Corporate Office Space
Co-working Spaces
Industrial
Education
Healthcare
Relevant Teams
Legal
Real Estate
Facilities Management
Operations
Administration
Compliance
Finance
Property Management
Asset Management
Business Development
Relevant Roles
Property Manager
Real Estate Manager
Facilities Manager
Legal Counsel
Corporate Real Estate Director
Operations Manager
Administrative Officer
Compliance Officer
Real Estate Agent
Property Administrator
Business Development Manager
Asset Manager
Chief Financial Officer
Real Estate Portfolio Manager
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