Leave and Licence Agreement in Mumbai: Registration, Stamp Duty and the Clauses That Protect You

How leave and licence agreements work in Mumbai: mandatory registration, stamp duty, police verification, deposit, lock-in and notice. Owner and tenant guide.

Rental flats in Thakur Village, Kandivali East, Mumbai

Almost every rental in Mumbai runs on a leave and licence agreement, not a lease. The difference is not cosmetic. A licence lets the tenant occupy the flat without creating a tenancy interest in it, which is why owners prefer it. But it only protects you if it is drafted properly and registered.

This guide covers what owners and tenants need to know before signing a leave and licence agreement in Mumbai in 2026.

Leave and licence vs rent agreement: what is the difference?

A lease transfers an interest in the property for a period. A leave and licence agreement simply permits the licensee to use the premises on agreed terms, and possession legally stays with the owner. In Maharashtra, this structure is recognised under the Maharashtra Rent Control Act, 1999, which makes recovering possession at the end of the term far simpler than under an old-style tenancy.

Is registration mandatory in Maharashtra?

Yes. Leave and licence agreements in Maharashtra must be registered, whatever their length. The responsibility sits with the owner. If the agreement is not registered and a dispute arises, the tenant's version of the terms can prevail, and the owner can face penalties. An unregistered agreement is the single most expensive shortcut owners take.

How e-registration works

The agreement is drafted and registered online through the Maharashtra registration department's e-registration system, with biometric e-KYC of both parties and witnesses.
Nobody needs to visit the Sub-Registrar's office; a registration agent can come to the flat or the parties can complete it remotely.
NRI owners usually register through a power of attorney holder in India.

Stamp duty and registration fee

Stamp duty on a leave and licence agreement is a small fraction of a percent, calculated on the total rent for the term plus a notional amount on the refundable deposit. A nominal registration fee is added, ₹1,000 in most urban areas. On a typical Mumbai rental, the total usually runs to a few thousand rupees, far less than one month's rent.

Police verification of tenants

Mumbai requires owners to inform the local police station about every new tenant, with identity details. It can be done online through the Mumbai Police portal. Skipping it exposes the owner to action, and it is the first thing a society or police officer will ask about if anything goes wrong.

An unregistered leave and licence agreement is the most expensive shortcut a Mumbai landlord can take.

The clauses every Mumbai leave and licence agreement needs

Term and renewal. 11 months is common, but agreements can run longer. State how renewal works and who pays the new stamp duty.
Rent and escalation. Fix the monthly licence fee, due date and the escalation on renewal, typically 5 to 10%.
Security deposit. Amount, the conditions for deductions and the refund timeline after handover.
Lock-in and notice period. A lock-in protects the owner from an early exit; a notice period of one or two months protects both sides.
Maintenance responsibilities. Spell out who pays for what. Our tenancy responsibility policy is a good model.
Inventory and condition. Attach a fixtures list and dated move-in photographs. They decide deposit disputes.
Society rules and use. Residential use only, number of occupants, pets and society NOC.
TDS. State whether the rent is gross of TDS. If rent exceeds ₹50,000 a month the tenant deducts 2% (see our Form 141 guide); if the owner is an NRI, 31.2% applies from the first rupee (see TDS on rent to an NRI landlord).

TW Gardens residential complex in Thakur Village, Kandivali East — See current 2 and 3 BHK rentals in Thakur Village and flats for rent across Mumbai.

For tenants: what to check before you sign

The owner's ID and proof of ownership, or the POA if an agent signs for an NRI owner.
That the agreement will actually be registered, and that you receive a copy.
The deposit refund terms and the notice period, in writing.
Society rules on move-in timings, parking and pets.

Our tenant's guide to renting in Mumbai goes deeper on deposits and notice.

For owners: let TND handle it

TND Listings drafts, registers and stores every leave and licence agreement for the homes we manage, completes police intimation, records move-in condition with photographs and keeps the TDS process on track. List your property or see NRI property management.

Frequently asked questions

Is registration of a leave and licence agreement mandatory in Mumbai?

Yes. All leave and licence agreements in Maharashtra must be registered, regardless of duration, and the responsibility lies with the owner.

How much is stamp duty on a rent agreement in Mumbai?

It is a small fraction of a percent of the total rent and a notional amount on the deposit, plus a registration fee of about ₹1,000 in urban areas. It typically totals a few thousand rupees.

Why are Mumbai rent agreements usually 11 months?

Convention and convenience: short terms keep renewals and rent revisions simple. Registration is still required for an 11-month agreement.

Is police verification of tenants compulsory in Mumbai?

Yes. Owners must inform the local police about new tenants. It can be done online through the Mumbai Police portal.