A lease agreement can be transferred to third parties and heirs with rights, while a licence cannot be transferred. When a property is transferred to another owner during the lease, the new owner is required to comply with the terms of the lease. It`s also the opposite. 1. A lease agreement is a transfer of an interest in a particular property, whereas the licence is a simple authorization, without transferring interest. 2. A rental agreement generates interest in the tenant`s interest in the property, but a licence does not create such interest. 3. A tenancy agreement is transferable and hereditary, a sublease contract can be created by the tenant and, after the death of the tenant, the tenancy agreement may be inherited from his legal heir, while the licence is neither transferable nor hereditary. 4.
A licence ends with the death of the lessor or warranty, as it is a personal contract, but a lease agreement does not end with the death of the donor or the fellow. 5. A licence may be revoked at any time to the entertainment effect of the lessor, but the lease can only end under the terms of the lease. 6. A lease agreement is not affected by the transfer of the property by sale to a third party. It continues and the buyer must wait until the period for which the lease was created expires before he can acquire the property, whereas in the case of a licence, if the property is sold to a third party, it ends immediately. 7. A tenant has the right to protect the property within his own right. While a licensee cannot defend his property in his own name, since he has no property rights over the property. 8. A tenant in possession of the property is entitled to all improvements or memberships to the property, while a licensee is not. Home Location ” ” The difference between leases and licensing agreements The clause was defined in Section 52 of the Indian Easements Act, 1882. If a person grants another person or a number of other persons the right to do or continue to do, on or on the recipient`s land, which would be illegal in the absence of such a right and such a right does not constitute relief or interest in the property, the right is classified as a licence.” , indicates section 54.
See also: Everything you need to know about leases To get the benefit of a licensing agreement, the owner must ensure that his agreement with the potential user of the premises is in fact a license and not a lease. This is not necessarily an easy task to accomplish. If the agreement is referred to as a “licence,” it will not. Whether an agreement is considered a licence and not a lease agreement depends on the fact that the three essential features of a real estate licence are included in the agreement: 1) a clause allowing the licensee to revoke “as he sees fit”; 2) the maintenance of absolute control of the premises by the licensee; and 3) the provision to the licensee of all essential services necessary for the authorised use of the premises by the taker. c) A licensing agreement is easier to terminate than a lease. Licensing agreements can be entered into, leases are generally not concluded. When a lessor grants a temporary placement of his property to another party by contract for a given purpose, this is done by granting a licence in return for the payment of the rent. Unlike a lease agreement, a licence from the other party does not give an exclusive right of ownership on the land. In short, leases offer more flexibility, so tenants allow full use of the property. The advantage of a licence is that residents can only use land or land for specific purposes.
Leaseholders: If the tenant breaches this duty of repair in accordance with Section 112 of the PLA, the damages withdrawn by the lessor must be proportionate to the resulting depreciation of the premises.