A lease is a transfer of a right to enjoy immovable property for a certain time in consideration of rent or premium, while a license is only a permission to do something on the property without transfer of any interest.
For Judicial service interview, the safest short distinction is: lease creates an interest in the property and usually gives exclusive possession; license creates no interest and only permits use, generally without exclusive possession.
30-second answer
“Lease means transfer of a right to enjoy immovable property for a specified term, so it creates an interest in the property and ordinarily gives the lessee exclusive possession.License, on the other hand, is only a personal permission to use the property for a particular purpose; it creates no interest in the property and normally gives no exclusive possession.
Therefore, the main test is: if there is transfer of interest and exclusive possession, it is a lease; if there is only permissive use without such transfer, it is a license. ”
Interview keywords
Lease: transfer of interest in immovable property.
License: bare permission.
Lease: exclusive possession.
License: no exclusive possession.
Lease: generally not revocable at will.
License: generally revocable unless coupled with conditions to the contrary.
One-line case-style test
If the occupier can exclude even the owner during the term, it points to a lease; if the owner retains control and the occupier is only allowed to use the premises, it points to a license.
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