What is the difference between a lease and a licence?
Beyond the Name Tag: The Law's Great Property Riddle—Lease vs. Licence Imagine two business owners operating side-by-side in a bustling shopping centre. One runs a sleek, long-established cafe. The other, a festive kiosk selling Christmas ornaments for a few weeks in December. The agreement each signed has a different legal name: the cafe owner has a Lease , and the kiosk operator has a Licence . This seemingly minor difference in terminology is one of the most critical and fiercely contested distinctions in property law. It’s the difference between having a castle and a temporary permission to camp. The law doesn't care what you call the agreement—you could title it "The Grand Royal Tenancy of the Universe," but a court will look at its substance , not its label . 1 The famous legal test comes down to three key questions. The Three Hallmarks: The Test of Exclusive Possession The single most important factor that separates a Lease from a Licence is Exclusive Posses...