Leave and License Agreements: Convenience Today, Litigation Tomorrow?
The Leave and License Agreement is often treated as a convenient workaround—quick to execute, easy to exit, and comfortably outside the rigours of tenancy law. That comfort, more often than not, is misplaced. In law, labels are decorative. Substance is decisive. A license, in its pure form, is nothing more than a permission to use premises without transferring any interest or legal possession . It is personal, limited, and revocable. But the moment the arrangement begins to resemble exclusive possession, long-term occupation, or tenancy-like control, the document starts drifting—quietly but significantly—into the territory of a lease. And that is where disputes begin. The Legal Distinction: License vs Lease The distinction is fundamental, but frequently misunderstood. A lease creates an interest in the property. It transfers a right to enjoy the premises, often with exclusive possession, and invites statutory protections—particularly under rent control laws. A license , on the...