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. A court will always consider the content of an agreement and not just its name to interpret the true intent of the parties. It is therefore important for landlords and tenants that professional agreements are regulated and properly documented. This is a complex legal area and legal advice is needed in the development and negotiation process. 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. A license gives the licensee minimum rights.
Therefore, they generally have no interest in the land and the license does not create any interest in the country – it simply prevents the licensee from being a deviant. However, the law is still evolving and the courts believe that, in some cases, there is interest in land. In the absence of formal interest in land, a licence is not binding on a right holder (for example. B a property acquired), unless there is “constructive trust.” Therefore, if the property is sold to another, the interest is not in principle transferred with it as part of a licence. Constructive trust can arise if the seller has suggested that the property is subject to the licence. Lease tenants: Section 107 of the PLA authorizes the lessor to have a limited right to consult and repair rented premises (an exception to the tenant`s exclusive right). However, this may be excluded by the explicit terms of the lease. Licensed: A license cannot be registered and is therefore not interested in the land. All-you-can-eat rental By nature, this scheme is the most flexible between the landlord and the tenant. It can be terminated at any time by any party for any reason. An all-you-can-eat rental right does not create any legal interest in the land and should therefore only be used in the short term. This type of agreement is such as to allow a tenant immediate access to a property while the tenancy negotiations continue.