I am pleased to announce that I will speak in an upcoming Strafford live video webinar, “Lease vs. License: Short-Term Property Use, Access, and Exclusive Control, Termination, Remedies,” scheduled for Thursday, April 21, 1:00 pm-2:30 pm EDT.

Landlord attorneys have either overlooked or been too cautious about suggesting license agreements to their clients. Currently, real estate license agreements are utilized primarily by owners of properties licensed to short-term users: office space, laundry facilities, certain types of storage spaces, and kiosks in shopping malls. More firms are now adopting a “hybrid” model where employees divide their time between working remotely and in the office. This greater demand for part-time office space may increase license agreement use. Whether there is, a market for real estate license agreements for other occupancy types is not as apparent. However, given the landlords’ need to be relieved of the frustrations of traditional landlord-tenant litigation, such an agreement may be helpful in the right business plan.

Pros and Cons of Lease vs. License

A significant benefit of the owner-licensor’s rights in a licensing relationship is the right to revoke the license “at will” and to use “self-help” to remove a defaulting licensee from the licensed premises without having to endure months or years of lengthy and frustrating litigation to regain possession of the valuable real estate.

In contrast to the courts’ hostility to allowing traditional landlord’s use of self-help, under a bona fide license agreement, the tenant-licensee owns no estate in the premises and has no right to possession. Common law principles apply, and the owner-licensor has the absolute right to use peaceable self-help to remove a licensee from the licensed premises for any or no reason.

From the tenant’s perspective, there are occasions when a lease would be preferred to the flexibility, but lack of security, of a license. Tenants seeking REIT-qualified assets will negotiate for a lease. Though some tenants will enter into license agreements, the tenant will want to review termination rights in any written agreement to clarify how a licensor can exercise such rights.

Seminar for Attorneys to earn Continuing Legal Education Credit

Our panel will examine the use of lease vs. license for short-term occupancy. The panel will discuss when a license should be considered, the contract terms included in such agreements, and what termination provisions and remedies are available. The panel will address when a traditional lease should be used rather than a license, even when occupancy is for a limited term.

We will address these and other relevant issues:

• What businesses might consider a real estate license instead of a lease?
• What should be included in the termination provisions of a real estate license?
• What should tenants consider when picking between a lease vs. license?
• What remedies are available to license owners when a licensee breaches a real estate license?

After our presentations, we will engage in a live question-and-answer session with participants to directly answer your questions about these critical issues.

I hope you’ll join us.

For more information or to register >

Or call 1-800-926-7926
Ask for Lease vs. License: Short-Term Property Use on 4/21/2022
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