Using A License Agreement Instead Of A Lease

So what is a court going to try to steal the nature of the relationship between the parties? As a general rule, there is a lease agreement when the owner agrees to transfer the exclusive property to another for a specified period of time. On the other hand, a license is an agreement that authorizes the purchaser to use the land only at the owner`s discretion. A licence is revoked freely and does not offer the licensee protection against the licensee`s interventions. The essential difference between a lease agreement and a licence is that a lease agreement gives the tenant an interest in laudable premises that manifest themselves in the right to exclusive ownership (see Radich/Smith [1959] HCA 45. Licensed: A license is suitable for sharing (so that it is adapted to a number of agreements concluded by our ecclesiastical clients). However, the use of a licensing agreement instead of a lease agreement does not completely exclude all possibilities of a dispute between the owner-conedantle and the licensee. Whether the “self-help” used was peaceful (and therefore legal) or forced (and therefore illegal) is always a possible contentious issue. However, if there is a valid licensing agreement, the owner licensee is not required to reinstate the deposed licensee on the premises, even if it turns out that the self-help used is binding and un pacified. In New York, the licensee`s only recourse is the triple damages that RPAPL 853 provides for violent ejection. In the meantime, the owner`s licensee is free, before a court ruling, to re-elect the use of the premises to another licensee. Unlike leases, licenses are not transferred and owners never revoke them. Owners must also judge the commercial feasibility of the takers who agree to accept licensing agreements with “at will” retraction clauses.

Whether potential tenant licensees are willing to sign such agreements may depend on the type of space available to the owner for licensed use, for example. B whether the authorized space is a warehouse, an office suite for multiple users or a single disk space. In order to attract licensees who are concerned about making a significant investment in space under the issue of a retractable licence, owners may create new financing incentives or put in place a mechanism in the agreement to compensate a non-insolvent taker for the unpre amortized value of their investment, as soon as the licensee calls the “at will” clause of the agreement. Most important The right to license ownership is the right to revoke the licence “as it sees fit” and to use “self-help” to remove a defaulting licensee from the licensed premises, without months or years of long and frustrating litigation to recover possession of valuable real estate. Wendy represents clients in Illinois and Wisconsin in a variety of commercial real estate transactions and real estate finance. In addition to acquisitions, provisions and leasing contracts, Wendy advises lenders on credit transactions, loan training sessions, credit restructurings, leniency and pre-auctions. If you need help with a related case, contact Wendy. Licensing, on the other hand, does not always need a written agreement to be binding.

A licence may be granted to a party without any party ever meeting.