Differences Between Leases and Licenses of Real Property

Parties entering into an agreement for the use of real property should consider whether they intend to create a lease or a license because the nature of the arrangement may significantly affect the rights and remedies of the partiest,

мая 28, 2024 at 11:08 AM

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Owners of real property seeking to give a third party the right to use all or a portion of their property may do so through the grant of a leasehold interest or a license. Leases are generally viewed as more appropriate for a longer-term occupancy on an exclusive basis, and licenses are generally viewed as more appropriate for shorter-term arrangements and for non-exclusive uses. In many cases, however, the distinction between the two interests can be blurred.

A lease typically grants to the lessee an exclusive right to specific property of the lessor for a set term of years, in consideration of the payment of rent. The lessee receives an interest in the property for that set term, and such interest is not revocable at will by the lessor (unless expressly provided for in the lease).

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