Licensing Agreement Vs Lease

In the case of a rental agreement, there is a relationship between the user, usually designated as a tenant or tenant, and the owner of the land. A rental agreement allows the exclusive use, exclusively to the tenant, for a specified period of time. During this period, the tenant takes control of the property and pays for the living and maintenance of the property. The licensing agreement is simple and does not need a lawyer every time to prepare, as is the case with a complex lease, and therefore must be put in place at a lower cost. Both parties sign a standard contract that gives the landlord the right to enter the premises at any time and the tenant is not entitled to renew the licence at the expiry of the licence. The benefits of a license for a lessor and tenant are that the licenses cover a relatively short period, usually up to six months, whereas leases can usually last a few or many years and have difficult conditions. Leaseholder: A long-term lease (for more than 3 years) in Queensland must be listed on the title to “transfer or interest the lot.” See sections 181 and 182 of the Land Title Act 1994 (Qld). In the Queensland context, registration for short-term leases of 3 years or less is optional. After registration, it enjoys the protection of impracticality, which means that the tenant`s interest in the land takes precedence over other unregistered instruments. Learn more about how lenders can begin to use licenses rather than leases The fundamental characteristics of a lease agreement that distinguish it from a licence are: In these circumstances, the court considers the substance to take precedence over terminology, the courts that examine the true nature of the agreement and not their language to determine the actual intentions of the parties , the priority. Leaseholders: a lease of part of a piece of land (which is not part of a building) for a stay of more than 10 years (including renewal options) constitutes a “reconfiguration of a lot” that requires a subdivision authorization from the local authority. There are a number of important ways to know how rentals differ from licenses, but the main one refers to the issue of control. Leases as agreements are contracts that have much less control than the licenses of the party making the payments.

If you enter into a contract in which you essentially have the freedom to do what you want to do on land, you probably enter into a lease agreement. 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.