Difference Between Licence To Occupy And Tenancy Agreement

Therefore, even if your contract is called a lease (or license), this is not necessary conclusively. It is important to consider the whole agreement (not just the isolated terms) in determining the rights and interests that the parties wanted to create. Ask for advice if you think your agreement contains unfair terms or that your landlord cares about something you feel is unfair. Your agreement should say if you have to pay a down payment, which covers it and the circumstances that mean you will not get your deposit back. The fundamental characteristics of a lease that distinguishes it from a license are: a landowner often uses a licence to share the property with a third party. This may be the case if the owner does not agree with a fixed long-term term. Examples where there is generally no intention to create a rental agreement (even if there is an exclusive property): for example, you can have a license if you live in a hostel or if you are a tenant. 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. Read the agreement carefully before signing it. Ask the owner to explain everything you are not sure.

His Honour therefore recognized that language has the potential to mislead – certain terms may be accepted, sometimes unconsciously, sometimes with the deliberate intention of concealing the true nature of the parties` agreement and circumventing the legal implications that flow from it. Some leases are granted for a fixed term, for example. B 6 months or 1 year. If the tenant has only part of the exclusivity, a tenant contract is sometimes more appropriate. Intention to do what? Do not label the transaction. Do not escape the legal consequences of a relationship by confessing that it is another. Whether the transaction creates a lease or a license… depends on the nature of the right that the parties intend to have with respect to that country by the person entering the country.

It is therefore best to avoid disputes over the status of the crew by having your agreement documented (whether it is a licence or a lease agreement) in order to avoid potential future disputes. Certain rights and obligations apply regardless of what is in the agreement, for example: the liability of an owner for repairs. Rent is preferable to licensing in the following circumstances: in these circumstances, the court considers that the content takes precedence over terminology, the courts that examine the actual nature of the agreement, not their language, to determine the actual intentions of the parties.