To learn more about how owners can use licenses instead of rental licenses, click here. Does the document confer on the non-owner rights to the premises, such as. B, the right to make repairs or to be responsible for safety? Does the owner have to cancel before the contract is terminated? Does the document include a “healing period” in the event of a failure on the part of the non-due party? Is there a holdover rule in the document? If the answer to these questions is “yes,” it is unlikely that the agreement between the parties is a real license, even if the document is as such and is likely to be a lease. A tenancy agreement is a mandatory agreement between a landlord and a tenant and gives the tenant a property interest in the property which gives him the right to exclude the owner of the property (and all others) from the use of the property. It is therefore necessary to draft appropriate licensing agreements carefully and, to that end, there must be close cooperation between lawyers and their clients who wish to set up a licensing system. Communication with the customer about the risks and benefits of using a licensing system will be essential. In addition, lawyers must consider the client`s objectives and determine the initial cost that the client is willing to accept to offer the type of “full service” agreement that will pass the “licensing test” of a court. However, the use of a licensing agreement instead of a lease agreement does not completely exclude all possibilities of a dispute between the owner-conedantle and the licensee. Whether the “self-help” used was peaceful (and therefore legal) or forced (and therefore illegal) is always a possible contentious issue. However, if there is a valid licensing agreement, the owner licensee is not required to reinstate the deposed licensee on the premises, even if it turns out that the self-help used is binding and un pacified.
In New York, the licensee`s only recourse is the triple damages that RPAPL 853 provides for violent ejection. In the meantime, the owner`s licensee is free, before a court ruling, to re-elect the use of the premises to another licensee. So what is a court going to try to steal the nature of the relationship between the parties? As a general rule, there is a lease agreement when the owner agrees to transfer the exclusive property to another for a specified period of time. On the other hand, a license is an agreement that authorizes the purchaser to use the land only at the owner`s discretion. A licence is revoked freely and does not offer the licensee protection against the licensee`s interventions. One of the terms of the licence agreement is that the purchaser must properly insure the property from the end of the licence agreement. An example of a licensing agreement in the restaurant industry would be that a McDonald`s franchisee has a licensing agreement with McDonald`s Corporation that allows them to use the company`s branded and marketing materials.