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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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