Difference Between Lease And License Agreement

It is not important that an agreement containing these conditions be the default lease. The classification of the agreement for rent is based on the fact that the taker must have control of the property and not the original owner. A lease agreement and a licence are the two types of contractual agreement between the lessor or the licensee and the taker/tenant or licensee. This contract binds the two parties under the terms of the agreement. On the other hand, the licenses allow the party who accepts the payment to have much more control over the use of its assets. With respect to the example above, licences cannot be transferred to third parties because the licensing company controls certain aspects of your behaviour in the field; Allowing another party to use the property rather than itself would be a violation of that agreement. This is why licensing agreements are mainly used for short-term contracts with storage, office and small areas. “If a document confers only the right to use the property in any way or under certain conditions, as long as it remains in the owner`s possession and remains in control of the owner of the property, it is a licence. The legitimate property therefore remains due to the owner of the property, but the licensee may use the premises for specific purposes.

But for the authorization, its occupation would be illegal. It does not create any real estate or interest in the property in its favor. There is therefore a clear distinction between the two concepts. The line is clear, although it is sometimes very fine, even blurred. In the past, it was assumed that the review of sole detention was infallible and, if a person were to become solely owned by a business, he would conclusively establish that it was a tenant. The definition of the licence makes it clear that a licence issued by the owner gives the licensee the right to do or continue to do certain things in or on a property. On the other hand, the law on the transfer of ownership also provides for the definition of the lease. [2] The rent can be easily recognized by a person, if there is some kind of transfer of interest, there are parties to rent, there is an object of rent and so on.