A user license is a personal agreement between the licensor and the user (licensee), whereby the licensor authorizes the licensee to use the premises not exclusively for a short period, usually six or 12 months. The occupation is “not exclusive” because the licensor may also occupy the premises or grant other licenses to other users. The courts have concluded that licences are leases where one or more of these characteristics are either completely absent from the agreement or are not sufficiently integrated into the licensor`s powers. However, the less control granted to the licensee, the more likely it is that the agreement will be a licence, since a licence does not grant autonomy, but simply allows a party to “provide services within an enterprise that are provided on premises owned by another person who has the power to monitor how the services are provided”. Nevertheless, it has been found that Licensor`s continued control over the prices charged by Licensee, hours of operation in the Licensed Space, and even the choice of Licensee`s employees does not guarantee that the Agreement will be considered a license and not a lease, since such controls can no longer be considered “no longer by a reasonably diligent landlord vis-à-vis a tenant for [any] Business would be required.” A casting license is the permission to authorize the occupation. It provides a licensee (who is authorized under an agreement) with simple and easy access to the premises without the need to comply with legal procedures. Unlike a lease/rental, a license would generally not benefit from legal protection, such as.B. security of ownership (the right to stay on the premises after the expiration of the contractual period). It is not enough to call a contract a license. A court will always deal with the content of an agreement and not with how the document is called or the language used to determine the nature of the legal relationship between the parties. If the circumstances prove that the resident actually has exclusive ownership of the property, the license is considered a lease. This is true regardless of whether the document uses license terminology.

In the case of a licence for a period of more than 6 months, which is in fact a lease, there is another risk that the resident will live on the property under a lease with certainty of protection of the property. In such a case, it will be much more difficult, time-consuming and expensive for an owner to evict the resident. Similar to a lease, a licence agreement allows a landlord to allow another party to use their property for specific purposes and for a certain period of time. However, there are significant differences between a lease and a license agreement. In some circumstances, a licence is more appropriate than a lease. This article describes the key: As explained below, the two main differences between leases and licenses concern: The right to exclusive ownership can only be granted through a lease, not a license. It is the right of a party to use and occupy the premises exclusively. A common way to determine this is whether the occupied area has physical boundaries (for example.

B four walls). If this is the case, you will usually need a rental agreement. On the other hand, if the area has no boundaries (for example. B the center of a shopping mall), you usually need a license. The owners` lawyers neglected or were too careful to suggest the use of license agreements to their clients. However, licensing agreements allow owners of commercial buildings to completely eliminate the owner-tenant relationship and thus avoid the burdens that often occur in the legal framework of traditional owner-tenant procedures. Home / Published Articles / Tenants-Licensees, Licensees, Owners-Licensors, New York Eviction Process, Owner-Tenant Process, Good Faith License Agreement / Use of a License Agreement instead of a Lease The licensed territory must be clearly distinguished, as licenses are usually granted for areas that are not clearly defined by a boundary. One of the advantages of a license is that, since the license territory is more flexible than leases, it can be easily extended or reduced if both parties agree. However, the use of a license agreement instead of a lease agreement will not completely exclude all possibilities of dispute between the owner-licensor and the tenant-licensee. Whether or not the “self-help” used was peaceful (and therefore legal) or violent (and therefore illegal) is still the subject of legal disputes.

However, if there is a valid license agreement, the owner-licensor is not obliged to readmit the licensee to the premises, even if it turns out that the self-help used was violent and not peaceful. In New York, the licensee`s only remedy is the triple damage that RPAPL § 853 provides for forced eviction. In the meantime, before a court decision, the owner-licensor is free to sublicense the use of the premises to another licensee. For commercial real estate, a lease gives a business user valuable rights under the Landlord and Tenant Act 1954 (“MAL 1954”). A casting license will not benefit from it. Why should a casting license be a dangerous document? As always, the devil is in the details and a poorly designed license can be very bad news for the landowner (or licensor). At present, real estate licensing agreements seem to be used mainly by authorized owners to short-term users: office spaces, laundry rooms, certain types of storage spaces and kiosks in shopping malls. It is clear that there is a market for such agreements. Whether there is a market for real estate licensing agreements for other types of occupation may not be so obvious, but given the need for landlords to be freed from the onerous burdens and frustrations of traditional landlord-tenant disputes, such an agreement can be useful for the right business plan. If the agreement is a license to use, it would be relatively easier for the owner to chase the user from the premises at the end of the period.

If it is a lease or a rental, it is much less. Whether a license agreement might work for you depends on: Self-help is not inaccessible to New York owners, who reserve the right to use it in their leases. However, courts usually face self-help from a landlord and do not approve their use if there is ambiguity in the rental terms or if there is a factual question of whether the lease has expired or not. In addition, under the New York Real Estate Actions and Procedures Act (“RPAPL”) § 853, if a tenant is forcibly or unlawfully evicted from the property, the tenant may claim triple damages from the landlord and may also be reinstated if excluded before the end of the lease term. Only when a court finds that restoring the tenant to possession would be “unnecessary” because the landlord will evict the tenant on a summary conviction is it unlikely that the court will order the tenant to restore the premises. If you plan to use the template or any other “license to cast” sample format, it is essential that you understand that a license is not the same as a lease/rental, and you should ensure that all parties are clear about the exact terms of the license and do not create a tenancy. In order to benefit from a license agreement, the owner must ensure that his agreement with the potential user of the premises is indeed a license and not a lease. This is not necessarily an easy task. If you simply refer to the Agreement as a “License”, this will not be the case. Whether an agreement is considered a licence rather than a lease depends on whether the agreement has or lacks the three essential characteristics of a real estate licence: (1) a clause that allows the licensor to revoke “at will”; (2) the retention of absolute control on the premises by the licensor; and (3) the provision by Licensor to Licensee of all essential services necessary for Licensee`s Authorized Use of the Premises.

Lawyers for tenants whose clients fail to sign a license agreement in good faith can no longer guarantee that a judgment on the eviction will be delayed for up to six months. If their licensed customers do not cure their norm, customers are subjected to peaceful self-help expulsion from the licensed premises quickly and without further delay. Owners will no longer eagerly forego their income and overdue funds to ensure the recovery of ownership of the premises at any given time. The bargaining lever will shift in favor of the owner-licensor, who can either demand full payment from the defaulting licensee if he wants to avoid eviction, or demand peaceful ownership of the premises with the full support of the law. For homeowners frustrated with the right facts and properties using the latest computerized access systems, this is a long-awaited revolution. Owners must also make judgments about the commercial feasibility of obtaining licenses that are willing to accept license agreements with “at will” withdrawal clauses. The willingness of potential tenant-licensees to sign such agreements may depend on the type of space the landlord provides for licensed use. B for example if the licensed space is a warehouse, a multi-user office suite or a simple storage space.

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