What is the Difference Between Lease and License?

The main difference between a lease and a license lies in the rights and interests they grant to the user of the property. Here are the key differences between the two:

1. Lease:

• A lease is a contract between a landlord and a tenant that provides the tenant with exclusive interest in the property for a specific term.
• Leases grant the tenant a leasehold interest in the real property, which is usually transferable and irrevocable.
• A lease gives the tenant the exclusive right to occupy the property during the term of the agreement, even against the property owner.
• Leases are often used for long-term exclusive use of property, such as residential or commercial rentals.

1. License:

• A license is a permission from the property owner to use the property for a specific purpose.
• Licenses do not transfer an interest in the real property; they only grant a personal privilege to use the property for a particular purpose.
• Licenses are often revocable and can be either exclusive or non-exclusive.
• Licenses are typically used for short-term or shared use of property, such as parking lots, event venues, or temporary workspaces.

In summary, a lease grants an exclusive interest in a property, allowing the tenant to occupy and use it as they wish, while a license grants permission to use the property for a specific purpose, without transferring any interest in the property itself.

Comparative Table: Lease vs License

The main difference between a lease and a license is the granting of exclusive use rights to the tenant or licensee. Here is a comparison table highlighting the key differences between the two:

In summary, a lease transfers exclusive use rights and an interest in the property to the tenant, while a license grants permission to use the property without exclusive use rights. A lease is usually more secure and less revocable than a license, which is more flexible for both parties.