Tenancy Agreement Or Licence To Occupy

It should also be noted that a licence does not confer interest on the land, as it is not subject to stamp duty. However, it would be unnecessary to label a document as a license for the sole purpose of avoiding stamp duty. Whether a document creates a lease or licence does not depend on the name of the document or any other label indicated by the parties, but on the actual nature of the rights and obligations, as the agreement demonstrates. An important factor in distinguishing between a rental agreement and a license is whether the user has the property exclusively. Subject to different facts from one case to another, the law generally accepts that the granting of exclusive employment (the user may occupy the property exclusively and privately) creates a lease agreement for a period of time for periodic payments. Tags: professional rental, commercial real estate advice, commercial rental, occupancy license An occupancy license may also be appropriate if there are no defined premises – for example, the use of hot desks in an office or the location of the kiosk in a shopping mall. An all-you-can-eat lease is a short and flexible lease or license. In most cases, it is more like a license than a lease. The distinction is important for a number of reasons. In particular, a license is only a personal and contractual authorization for the licensee to do something – to provide the country in this context. A licence does not confer rights on the bearer, it cannot be transferred, and it does not survive any change in ownership of higher property or interest rights. It is essential that a licence does not guarantee seniority and, therefore, a licensee`s position is precarious. The distribution of agreements can make it difficult to determine the status of the occupants.

For more information, see What is a rental agreement? If you are not occupying the property and do not want the occupier to benefit from the legal provisions applicable to a rental contract, then use our residential occupancy model. To occupy a license can be a useful arrangement for a real estate owner where flexibility is needed or if the property has multiple users. This may also apply to a licensee if the terms and conditions are in accordance with his requirements and reflect the rights granted. A residential occupancy licence is greater than a rental contract and the licensee will not benefit from the legal protection afforded to a tenant who occupies a property under a rental agreement. If the tenant has only part of the exclusivity, a tenant contract is sometimes more appropriate. The agreement you have is very limited because you thought it was a simple license, so you cannot protect the usual conditions that normally protect an owner in an AST. As a result, your tenant is not required to make repairs or perform other obligations. He or she will have to destroy the place before you can get him out.

With a tenancy agreement, the lessor grants the tenant exclusively the exclusivity of the job. This means that the landlord cannot use or enter the property without the tenant`s consent, subject to common exclusions found in a tenancy agreement, for example. B the right to enter the apartment with notice. These conditions may indicate that this is not, in fact, an “occupancy licence” but a lease.