What makes something a licence rather than a lease?

Broadly, the absence of exclusive possession for a defined term, plus real control kept by the owner. Courts in many systems look at what actually happens rather than at the heading on the document.

Why does the difference matter?

Because leases attract protections, formalities and sometimes rights to renew that licences do not. Getting the classification wrong can produce obligations neither side planned for.

How much notice is usual?

Licences are commonly short-notice by design, which is much of their appeal. The period is negotiated rather than set by law, though local rules can still intervene where the arrangement is really a tenancy.

Property and premises

Licence to occupy

The paper for letting somebody use space without granting a tenancy. It gives permission rather than possession: the occupier uses an area, often shared or moveable, and the owner keeps control and access. It is the usual document behind desk space, pop-ups, storage corners and short-term arrangements. Whether it really is a licence rather than a lease is decided by what actually happens — exclusive possession for a term generally makes a tenancy however the paper is titled.

In the catalogue: Property and premises
Where it can live: Any of the 184 governing laws

Who uses one

Coworking spaces, studios and serviced offices letting desks or rooms.
Businesses letting a corner of their premises to somebody else short term.
Occupiers who need space without the commitment of a lease.

What you are deciding

Which space is covered, and whether it is fixed or moveable
Whether the occupier has exclusive use of anything
The fee, and what it includes
The permitted hours and use
What services come with it
What notice either side gives
Whether the owner may move the occupier
Insurance and who covers what

Blanks you leave stay blank and wait in the room. Nothing is filled in from a guess.

The sections a draft usually has

1The parties and the space
2Permission to occupy
3No tenancy created
4Fee and what it includes
5Permitted use and hours
6Services provided
7Owner access and relocation
8Insurance
9Notice and ending it

A general outline, not a required one. What turns up in a draft follows what you described. A contract is written in the order a contract is read.

What people call it

The names this kind of paper goes by. They are here because people search for them. They also filter the catalogue. They are not a wordlist the door matches. At the composer you describe the deal in your own words instead.

licence to occupy
license to occupy
occupancy agreement
coworking agreement
serviced office agreement
temporary space agreement

Questions people ask

What makes something a licence rather than a lease?: Broadly, the absence of exclusive possession for a defined term, plus real control kept by the owner. Courts in many systems look at what actually happens rather than at the heading on the document.
Why does the difference matter?: Because leases attract protections, formalities and sometimes rights to renew that licences do not. Getting the classification wrong can produce obligations neither side planned for.
How much notice is usual?: Licences are commonly short-notice by design, which is much of their appeal. The period is negotiated rather than set by law, though local rules can still intervene where the arrangement is really a tenancy.

General answers about the document. Not advice about your situation. Not written about any one country.

Where it lives

A contract names the legal system it is governed by. That is a separate decision from which paper it is. You pick it at the door, from any of the 184 units in Governing law, including England and Wales, Delaware, California and New York.

You do not start from this page. Describe the deal in one sentence at the door. Read the draft back in plain language, in the order a contract is read.

Start it at the door →

Related kinds

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