Leasing is preferable to licensing in the following circumstances: Tenants under a rental agreement: As agreed, a rental agreement gives the tenant the right to „exclusive ownership“ of the premises, including the right to designate an unauthorized visitor. This means that the tenant may have an action at fault against the landlord if he enters the property without the tenant`s consent and without authorization, according to the terms of the tenancy agreement. What is the difference between a lease and a license? In these circumstances, the court considers that content takes precedence over terminology, the courts that examine the actual nature of the agreement, not their language, to determine the actual intentions of the parties. The debate over whether a person is a licensee or a tenant has existed for many years, in 1960 the Ontario Court of Appeal in Canada at Re Br. American Oil drew up a summary of the debate in writing. The core of these elements can be summarized as follows; If there is a relationship between the landlord and the tenant, there must be a reversal in the landlord, the creation of land in the tenant and a transfer of ownership and control of the premises to the tenant. Ultimately, the transfer of an estate to the tenant is an essential feature of the relationship – there is no transfer of land on land to a licensee and this is, according to the authorities, the main distinguishing feature between the two relationships. Although the discrepancies may sometimes seem vague, there are obvious effects on the continuation of one route as opposed to the other. The fundamental differences between a lease and a license are highlighted below. The essential element of the two forms of the legal relationship is the granting of a right to use premises in a certain way. One of the main legal differences that can be mentioned here is that a rental agreement grants a tenant a stake in land giving a tenant exclusive ownership and lease security, while a license is a more adaptable agreement and cannot offer the tenant the same rental security as a lease agreement.
Lease tenants: Section 107 of the PLA authorizes the lessor to have a limited right to consult and repair rented premises (an exception to the tenant`s exclusive right). However, this may be excluded by the explicit terms of the lease. Given the reality of the facts on the ground and the fact that the parties did not have the power to negotiate on an equal footing (the college had never used legal advice), the Tribunal found it unrealistic to assume that the parties had ever contemplated that the business and occupation of the college would be interrupted by the owner (and this could have been contrary to the commercial interest of the owner). The court therefore found that the college was exclusively in possession of the premises, so that, regardless of the description of the documents, its occupation was in fact subject to a lease agreement. However, if you take a closer look, your so-called licence could turn out to be a lease that will give you an interest in the land itself as well as a tenant`s rights and obligations.