Though often used interchangeably, lease, rent, and license have distinct legal meanings—and knowing the difference protects your rights.
Lease
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A legal transfer of interest in property for a fixed term
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Grants exclusive possession to the tenant (lessee)
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Governed by Section 105 of the Transfer of Property Act, 1882
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Not easily revocable—offers tenure security
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Can be inherited or transferred, unless restricted
Rent
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Common term used for payment made under a lease or license
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Not a legal category by itself—refers to the financial consideration
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Can apply to both lease and license agreements
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Amount, frequency, and terms are defined in the agreement
License
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A permission to use property without transferring possession
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No legal interest or estate is created
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Governed by Section 52 of the Indian Easements Act, 1882
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Usually revocable and non-transferable
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Used for short-term or flexible arrangements (e.g., kiosks, stalls)
