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Licence To Occupy Agreement

The owners assume that, because a student has only one bedroom, the fact that other facilities are shared must make him or her a licensee. In some cases, this may be true, but not in other cases. Don`t take the risk. Use a secure short-term lease and merge all tenants into one document. In this article, we explain how an occupancy license works, as well as other less common titles such as unit titles and rental units. An occupancy permit is a common agreement used to regulate the occupation of a portion in a property. It can be used as a useful tool for owners and businesses, but only if it is fully understood and used in appropriate circumstances. As noted above, an occupancy licence may be granted between the exchange and the conclusion of a lease agreement. Even if the tenant ultimately intends to enter into a tenancy agreement, the lessor must bear in mind the risk of insuring the current leases (if there is an intention to exclude him).

In this scenario, the lessor`s lawyer must ensure that before the lease is replaced (and access to the premises is granted), the necessary notices must be put in place to exclude the security of seniority. Just because a document is labeled as a license doesn`t mean it does so. The case law has concluded that a document, even if it qualifies as a licence if it has the characteristics of a lease agreement, is considered a lease agreement. From a legal point of view, the licensee has no legal interest in the property, but only permission to use all or part of the property, subject to possible reservations in the license agreement. A license allows you to enjoy the benefits of living in an elderly village without the weight of the property and is concerned about the possible need to sell the property at some point in the future, as the village operator is usually responsible for resale. An occupancy licence is a kind of ORA and the most common form of occupancy offered in senior villages in New Zealand. It is not enough to qualify a licensing agreement. A court will always consider the content of an agreement and not what is called the document or the language used in it to determine the nature of the legal relationship between the parties. If the circumstances prove that the occupier is in fact exclusively in possession of the property, the licence is considered a lease agreement. This is regardless of whether the document uses licensing terminology. In the case of a licence of more than 6 months, which is in fact a lease agreement, there is a risk that the occupier will occupy the property as part of a lease with the security of rental protection.

In such a case, it will be much more difficult, longer and more expensive for a landowner to drive the occupier out. Where possible, the landowner should retain the right to move the licensee to the area specified by the licence, so that no given area is removed from the purchaser as his or her own.

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