A draft of a leave and license agreement is a legal document that defines the terms and conditions between the licensor (property owner) and the licensee (tenant) for the rental of a property. Whether you are a property owner or a tenant, it is essential to have a clear understanding of the clauses mentioned in the draft of the agreement.
Here are some of the essential clauses that one must carefully consider while drafting the agreement.
Identification of the Parties Involved
The agreement should clearly identify the parties involved, including the name, address, and contact details of both the licensor and the licensee. This information helps to establish the legal relationship between the two parties.
Duration of the Agreement
The lease agreement should clearly outline the duration of the agreement. This includes the lease start date, the duration of the lease, and the end date of the lease. If the tenant wishes to extend the agreement, the lease agreement should contain provisions allowing for the renewal of the agreement.
Payment and Security Deposit
The lease agreement must include a clause specifying the rent amount, due date, and mode of payment. It should also include the amount of the security deposit, which is usually equivalent to one or two months` rent. This deposit acts as security for the licensor in case of any damage to the property or non-payment of rent.
Maintenance and Repairs
The agreement should clearly specify the responsibilities of the licensor and licensee for maintenance and repairs of the property. The licensor is responsible for structural repairs, while the licensee is responsible for minor repairs.
Usage and Subletting
The lease agreement should clearly specify the permissible usage of the property and whether subletting is allowed. If subletting is allowed, the agreement should contain provisions for a subletting agreement.
Termination of the Agreement
The agreement should contain provisions for termination of the agreement by either party. It should include the notice period required for termination and the consequences of breaking the agreement before the expiry date.
Conclusion
A draft of a leave and license agreement is a legally binding document that outlines the terms and conditions of the rental agreement between the property owner and the tenant. This document should be drafted with great care and attention to detail to ensure the rights and obligations of both parties are protected. By including the essential clauses mentioned above, both the licensor and the licensee can ensure a smooth and hassle-free rental experience.