Leave and License Agreement during Lockdown

The COVID-19 pandemic has caused widespread disruptions in various aspects of life, including real estate and legal agreements. One such agreement that has come into the limelight during these trying times is the leave and license agreement. In this article, we will discuss the key aspects of the leave and license agreement during the lockdown.

What is a Leave and License Agreement?

A leave and license agreement is a legal document that governs the relationship between the licensor (owner) and the licensee (tenant). In this agreement, the licensor allows the licensee to occupy the property for a specified duration in exchange for a fee. The licensee is granted a license to use the property and not a lease or ownership rights in the property.

Leave and License Agreement during Lockdown

The COVID-19 lockdown has posed challenges for both the licensor and the licensee in carrying out their obligations under the leave and license agreement. Here are some key points to consider:

Rent Payment

One of the most significant challenges during the lockdown is rent payment. Several tenants have lost their jobs or are facing salary cuts, making it difficult for them to pay rent. In light of this situation, the government has issued an advisory to landlords to be considerate while collecting rent from tenants during the lockdown period.

Some landlords have come forward to help their tenants by waiving off a part of the rent or by allowing them to pay in installments. In such cases, it is advisable to record such an arrangement in writing, with both parties agreeing to the modified terms.

Extension of the Agreement

If the leave and license agreement is due to expire during the lockdown period, the licensor and the licensee may face challenges in renewing or vacating the property. In such cases, it is advisable to extend the agreement on mutually agreed terms. It is important to ensure that the extension is recorded in writing and signed by both parties.

Access to the Property

During the lockdown period, it may not be possible for the licensee to access the property due to travel restrictions or other challenges. In such cases, the licensor may consider allowing the licensee to vacate the property without incurring any penalties.

Conclusion

In conclusion, the leave and license agreement during the lockdown period requires flexibility and understanding from both parties. While landlords need to be considerate in their rent collection, tenants must honor their payment obligations to the best of their abilities. It is essential to document any changes to the agreement to avoid any disputes in the future.