This is an agreement wherein the licensor temporarily allows the licensee to use and occupy licensor's immovable property full or a portion of it, for the purpose of carrying business activity or residential use. For this, the licensor shall be paid by the licensee a fixed amount also known as the rent. The leave and license are usually granted to the licensee for a period of 11 months. The agreement must be registered before the sub-registrar at the place of jurisdiction (the place where the immovable property is located).

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