What Is a Real Estate License Agreement

Licensing agreements are often used for the commercialization of technologies. As explained in Friedman On Leases, the difference between a lease and a license is as follows: In these circumstances, depending on the nature of the damage proven by the former licensee, the owner-licensor may consider what is only a possible but uncertain triple damage judgment as a much cheaper cost of doing business than the sum of all costs, that are typically associated with an owner-tenant dispute. In addition, instead of losing revenue during the self-help dispute, the owner will actually earn income from the payments he or she received from the new site licensee. An example of a restaurant license agreement would be if a McDonald`s franchisee has a licensing agreement with McDonald`s Corporation that allows them to use the company`s branding and marketing materials. And toy manufacturers regularly sign licensing agreements with movie studios, giving them legal authority to produce figurines based on popular images of movie characters. In addition to detailing all parties involved, license agreements detail how licensed parties are allowed to use the properties, including the following parameters: License examples can be found in many different industries. An example of a license agreement is an agreement between software copyright holders and a company that allows them to use the computer software for their day-to-day business operations. On the other hand, under a bona fide licence agreement, the tenant-licensee has no estate in the premises and has no ownership rights. Common law principles apply, and the owner-licensor has the unlimited right to use peaceful self-help at any time to remove a licensee from the licensed premises for any reason or no reason. A license agreement is a written agreement between two parties in which one owner allows another party to use that property under a certain set of parameters. A license agreement or license agreement usually involves a licensor and a licensee. The bargaining power of both parties to a licensing agreement often depends on the nature of the product. For example, a film studio that licenses the likeness of a popular superhero to an action figure creator could have significant bargaining power in this negotiation, as the manufacturer is likely to benefit enormously from such an agreement.

The film studio therefore has the leverage to take its business elsewhere if the manufacturer is cold on its feet. The courts have concluded that licences are leases where one or more of these characteristics are either completely absent from the agreement or are not sufficiently integrated into the licensor`s powers. However, the less control granted to the licensee, the more likely it is that the agreement will be a licence, since a licence does not grant autonomy, but simply allows a party to „provide services within an enterprise that are provided on premises owned by another person who has the power to monitor how the services are provided“. Nevertheless, it has been found that Licensor`s continued control over the prices charged by Licensee, hours of operation in the Licensed Space, and even the choice of Licensee`s employees does not guarantee that the Agreement will be considered a license and not a lease, since such controls can no longer be considered „no longer by a reasonably diligent landlord vis-à-vis a tenant for [any] Business would be required.“ A final consideration is that a party cannot turn a lease into a licence by simply calling it that; The terms of the agreement and the nature of the control are the most important determining factors. There may be gray areas from time to time, but usually the division is easy to see when viewed correctly. A few years ago, I met one of New York`s real estate legends and the general counsel of his company. He was bothered by the New York eviction process – the loss of rental income, the wasted legal fees, and the incredible time between a tenant`s default and an actual eviction. Learning more about how owners can use licenses instead of leases to obtain the benefit of a license agreement, the owner must ensure that their agreement with the potential user of the premises is actually a license and not a lease. This is not necessarily an easy task. If you simply refer to the Agreement as a „License“, this will not be the case. Whether an agreement is considered a licence rather than a lease depends on whether the agreement has or lacks the three essential characteristics of a real estate licence: (1) a clause that allows the licensor to revoke „at will“; (2) the retention of absolute control on the premises by the licensor; and (3) the provision by Licensor to Licensee of all essential services necessary for Licensee`s Authorized Use of the Premises.

At present, real estate licensing agreements seem to be used mainly by authorized owners to short-term users: office spaces, laundry rooms, certain types of storage spaces and kiosks in shopping malls. It is clear that there is a market for such agreements. Whether there is a market for real estate licensing agreements for other types of occupation may not be so obvious, but given the need for landlords to be freed from the onerous burdens and frustrations of traditional landlord-tenant disputes, such an agreement can be useful for the right business plan. Real estate is all about location, and a real estate license agreement can help you take advantage of a prime location. If you own a property, you can earn additional income from your property without sacrificing your property rights. Or, if you`re hosting a fundraising gala and have found the perfect space, you can come to a fair deal with a real estate license agreement. You may just want to sell Douglas fir trees in a parking lot in December. You don`t need the property forever – and besides, it`s not for sale. That doesn`t mean you can`t use it if the owner agrees.

It`s a win-win situation for everyone. When you get a real estate license agreement, you can close the transaction. Other names for this document: Property License Agreement The legal relationship between the owner-owner and a tenant established by a rental agreement is completely different from the legal relationship established by a license between the owner and the licensor and a licensee. The owners` lawyers neglected or were too careful to suggest the use of license agreements to their clients. However, licensing agreements allow owners of commercial buildings to completely eliminate the owner-tenant relationship and thus avoid the burdens that often occur in the legal framework of traditional owner-tenant procedures. Self-help is not inaccessible to owners in New York, who reserve the right to use it in their leases. However, courts usually face a landlord`s self-help and do not approve of its use if there is ambiguity in the tenancy terms or if there is a factual issue as to whether the lease has expired or not. .