The difference between leasing and licensing is the difference between two different legal concepts that relate to a person`s obligations and rights in a contract. A lease is a contract between a tenant and a landlord that grants the tenant an exclusive interest in the property. A license, on the other hand, exists when the owner grants a licensee permission to perform an act on the owner`s property. The main difference is then that leases give a person the right to control the property, while licenses only give a person the right to respond to it. The distinction between a lease and a license is important because only the former is an appropriate subject for a summary ejection action, while the latter can be terminated in an instant without justification. Perhaps the most important principle for distinguishing the two is that the special interest does not depend on the type of land: one person can keep a cow in a pasture belonging to another, either according to a lease or a permit. It boils down to this instead of the factors described above, with the answer being simple in some situations and much less certain in others. A lease is mainly a matter of value, usually referred to as real estate interest or estate in the country. This interest can be sold, inherited and charged. A lease grants tenants the right to exclusive ownership of the property, which they can use and enjoy at will, as long as they do not damage the property and their actions are not prohibited by the lease.

Wilcox v. Cherry, 123 N.C. 79, 31 PP. 369, 370 (1898). Since a lease is a matter of value that, for a limited time, belongs to the tenant, a landlord does not have the right to claim the property while the lease is in effect. Subject to the terms of the contract, a rental agreement is not revocable by the owner. If you have a one-year lease, the landlord cannot revoke your right to the land after six months without breaking the contract. However, a license is revocable. In this case, the neighbor can tell you at any time that you are no longer allowed to climb his tree. A final consideration is that a party cannot convert a lease into a licence by simply calling it that; the terms of the agreement and the nature of the control are the most important determining factors. There may be a gray area from time to time, but usually the division is easy to see if considered correctly.

Another factor that is often mentioned but used contradictorily by the courts is the terms used in the agreement. It is obvious that “when determining the actual nature of a contract, the courts will always consider its subject matter and not the name given to it by the parties”. Wilcox v. Cherry, 123 N.C. 79 (1898). A contract is not a lease simply because the parties mark it as lease. However, as part of its efforts to give effect to the intention of the parties as expressed in a written agreement, a court may consider whether the specific terms used inform the parties` understanding of the agreement, including how it is to be applied. For a number of its buildings, it has unveiled a new type of office space for small tenants who need smaller spaces. According to his design, a tenant would have a specific office and would share a photocopier, fax machine, kitchen, and conference rooms. Furniture, carpets, phones, computers and coffee would be provided by the owner. The rooms would be pre-built.

The tenant would only have to bring a pencil to be able to work. The Advocate General asked whether it was possible to use a license agreement in which he could change the locks or, in this case, turn off the key cards in the event of a tenant`s default. Our firm`s mission was to draft an enforceable license agreement that provides for self-help without having to resort to litigation. This article explains the license agreement, its limits, and its powers. It also dissects and explains when and how to use a license agreement, and the ability to properly perform self-help. Learn more about how landlords can use licenses instead of leases here A lease is an agreement between a landlord and a tenant that gives the tenant an exclusive interest in a property. A license is the owner`s permission to a licensee to do something on the owner`s property. As with all legal issues, the distinction is never easier. The coworking space offers businesses of all sizes the conveniences of a large, sophisticated office without having to buy furniture, secure utilities, or buy coffee.

The advantage of spaces popularized by companies like “WeWork” is that they are turnkey. No hassle, no hassle, just show up and work. This new way of using space may be good for some, but we must first assess the form in which this space enterprise is often provided – through a license. How is a license to use a room different from renting the same room? What legal concerns should a potential company have before joining this new way of working? We focus on four questions: (1) What rights does a company receive as a licensee compared to a tenant? (2) a permit holder may transfer his right to use a room; (3) under what circumstances may a licence be revoked; and (4) is your liability as a corporation under a licence different from a lease? Since you have an interest in the property, you can transfer your lease to another person. This happens when people sublet an apartment. Typically, a lease transfers exclusive ownership of a particular property against payment of rent and transfers ownership to the tenant for the duration of the lease. There may be situations where commercial property owners can eliminate the traditional landlord-tenant relationship by using licensing agreements instead of leases. .