Differences between a Sublease and a Licence
- A Sublease is a legal interest in land. Will bind the Sublessor’s successors in title. A Licence will only do this in certain situations.
- A licence cannot be registered.
- A sublessee has an automatic right to assign unless the sublease prohibits this. A licence can only do this if the terms of the Licence specifically allow for it.
- A sublesssee has exclusive possession of the premises and may sue for nuisance of trespass. A licence typically grants the licensee a personal right to enter for a specified purpose.
- The prohibition on the right to distrain does not apply to Licences. A Licence can provide the Licensor with a right to distrain.
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Important: This information is provided as a guide only and is not intended to be legal advice. You are strongly recommended to consult the services of an experienced lawyer.
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