On the surface, lease and leave-and-license agreements look similar – both let someone use property for a price. Legally, however, they are quite different, and that difference matters when disputes arise.

A lease usually grants an interest in the property for a defined period. The tenant gets more protection and can’t be easily thrown out as long as they follow the agreement. Rent control laws and tenant-protection statutes may apply.

A leave-and-license is meant to be a more flexible arrangement. The licensee only gets permission to use the property; no ownership interest passes. In theory, the owner can revoke the license more easily, and the relationship is seen as more temporary.

Courts don’t go by labels alone. If an agreement called “license” actually behaves like a lease – long duration, exclusive possession, landlord having very limited entry rights – it may be treated as a lease in substance.

For owners, using a properly drafted leave-and-license can reduce risk of sitting tenants. For occupants, understanding what they are signing helps avoid nasty surprises if the owner suddenly wants the premises back.