3) A rental deed must be stamped and registered. The amount to be paid for the stamp duty of the rental deed is more than that to be paid for the Leave and License. For a period of more than three years, stamp duty is the same for both contracts. Leasing creates interest on the rented property in favor of the tenant. (b) Under no circumstances may a licensee transfer the leased premises to third parties. On the other hand, a tenant may sublet the premises to a third party, unless the rental agreement expressly stipulates otherwise. So there is no big difference between them, the choice is yours. A finding of whether the person is in the possession of a lessee or licensee is a finding of fact. In order to determine whether a document creates a lease agreement or a license, the content of the document should be preferred to its form. When it creates an interest in the property, it is a lease; However, if it allows only one other to exploit the property whose legitimate ownership and control with the owner is maintained, it is a license. A licence does not create a reduction or interest in the property to which it relates. Whether an instrument serves as a financial lease or a licence is therefore not a question of the words contained in the instrument it has created, but of its content. The decisive reflection is the intention of the parties, but the intention must be gathered on a real construction of the agreement and not only from the description of the parties.
If the document is ambiguous with respect to intent, the issue must be transsable in relation to the circumstances and the evidence of probation that flows from it. A document expressing the intention of both parties or a party to establish a license will nevertheless create a lease agreement if the rights and obligations that have been granted and imposed comply with the legal requirements of the lease. The mere use of appropriate words for a rental agreement does not preclude it from being in possession of a licence; So even a document that concerns the “rent”, maybe a license. The transfer of sole ownership usually indicates the intention to create a lease agreement, although the sum is called a “royalty”, but this is no longer a conclusive test and there may be cases where the buyer in an excusable position is a licensee. If the tenant is still in possession at the end of the initial rental period and the lessor accepts a premium for the subsequent period, this is a lease and the tenant could not be evicted without the termination of the newly created lease. From the previous discussion, it would not be difficult to understand the different points related to leasing and licensing. Ann now, it wouldn`t be much harder to understand the difference between these two concepts. The lease is much larger than the license and gives the buyer a large number of rights that cannot be erased as easily. A person issuing a certificate cannot unilaterally invalidate it, but in the case of a licensor, he or she could terminate the licence.
This would be easier to understand if one looks at some of the Supreme Court`s decisions/jurisprudence. The actual intention of the parties is the basis for interpreting whether or not the agreement between the parties is a lease. This was decided by the Supreme Court in C.M. Beena v P.N. Ramachandra Rao, who stated that “the difference between a lease agreement and a license must be determined by the fact that the actual intent of the parties is decipherable from a full reading of the document, if any, between the parties and the surrounding circumstances.” . . .