Leases, Tenancies and Licences
What this domain tests
This domain tests the creation and incidents of leases, periodic tenancies, tenancies at will and licences, and the lease/licence distinction.
Core rules
- A lease grants exclusive possession for a term, usually for rent; a licence is merely personal permission and creates no interest in land.
- A legal lease for more than three years must generally be created by deed; shorter leases may arise orally or by operation of law.
- Periodic tenancies renew automatically; a tenancy at will has no fixed term and ends on demand.
- Covenants may include quiet enjoyment, repair, insurance, user and alienation. Forfeiture requires compliance with statutory notices.
Worked example
Occupier pays weekly rent, has a key, excludes others and stays for years; the owner calls the arrangement a 'licence'. The label does not decide. Exclusive possession plus rent and term point to a lease, so the occupier has a proprietary interest and may be entitled to notice before termination.
Traps
Treating the label 'licence' as conclusive. Confusing a tenancy at will with a periodic tenancy. Forgetting that a lease over three years needs a deed. Ignoring registered interests that bind a purchaser.