Land Law: Lease vs. License - Case Study Report and Legal Analysis

This report provides a comprehensive analysis of land law, focusing on the distinction between leases and licenses. It begins by defining both concepts and outlining the criteria necessary for a valid lease, including the form of the lease, exclusive possession, a fixed term, and the specific asset. The report then differentiates between leases and licenses, highlighting key differences such as the transfer of interest, the right to transfer, and revocability. Two types of leases, based on conditions, are discussed, and the report further distinguishes between legal and equitable leases. The core of the report applies these principles to a case study involving Mr. Kim and Shiraj, concluding that their agreement is a license rather than a lease. It clarifies Mr. Kim's legal options, including the right to collect dues and reclaim possession, and summarizes the key takeaways regarding property rights and agreements.

Land Law

Table of Contents
INTRODUCTION.................................................................................................................................3
Definition of lease.............................................................................................................................3
Key distinction between license and lease.........................................................................................4
Types of lease....................................................................................................................................4
Difference between legal and equitable lease....................................................................................5
Application to law.............................................................................................................................7
Options available for Mr. Kim...........................................................................................................7
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................9

INTRODUCTION
Land law state about right of individual to use particular land and property for personal
use so that other people those not have right to use property of individual. Legal document
are prepared that state which individual have legal right to use particular land for various
purpose such as it can lease or give license to other people to use. This report is about an case
study of land law which state an argument between Mr Kim and Shiraz’s related to particular
land. Therefore it explains lease, various criteria that need to be followed for leasing house
and the way it can be created. It also differentiates between lease and license so that correct
judgement can be taken regarding right to property.
Definition of lease
Lease is an official agreement between user of land and owner of land that it will pay an
specific amount of money in exchange for using particular asset for period of time. Lease
agreement provides detail information about various terms and condition that need to be
followed by both user and owner of land (Brown and Sinclair, 2019).
Criteria required for lease to exist
Various criteria that are required to exist for valid legal lease between two parties are
as follows:
Form of lease: Both parties should have made legal written document about lease of property
so that it can act as proof in case of dispute in future period.
Exclusive possession: Lease state that other individual does have right to exclusive own
property rather it can use asset for specific period of time thus right of land belong to person
who actual owned the property. Ownership of land is not transferred in lease but tenant can
exclusive use asset for specific period without interference of owner of land.
Fixed term: Lease agreements are made for specific or certain period between two
individual such as one week, month or year. It should also have commencement date
otherwise the document will not be declared valid.
Specific Asset should be lease: it is another criteria for valid lease that property that had
been leased must be briefly described in term of location, infrastructure etc (Black, 2019).
Description of Parties involved: Both parties need to have capacity to enter into lease
contract such as the person giving right to use property must be actual owner or landlord of
property.

Payment of rent: agreement also state about amount of payment that will be paid by user of
land to owner in exchange for using property of other individual.
Right of Reversion: After termination of particular period owner of land have right of
reversion of poverty as it is actual owner of land (Leitman Bailey and Katz, 2018).
The way lease can be created
Lease is created through written or oral agreement between two people about usage of
land for particular period and specific amount that need to be paid by user of land.
Key distinction between license and lease
There are various differences between license and lease of land that can be stated below such
as:
1. Lease is agreement where owner of land give right to other part to use land for
specific period of time where in case of license owner gives permission to take
various steps or action on particular assets (Balla, 2016.).
2. Lease creates interest of user for particular time period till which it uses land
whereas in license user does not have interest in the property.
3. Lease can be transferable to another person for period of contract as individual have
interest in the property on the other hand in license individual does not have right to
transfer license to another person.
4. Licence can be easily revocable at any time by owner of the property but in
perspective of lease it cannot be revocable by owner of property before completion of
time period (King, 2019). Such as individual have give right to use property for 2
years so owner does not have right to revoke agreement before 2 years.
Therefore from above analysis it can be stated that lease allows transfer of asset such as land,
building and other property for used by other individual for particular period. On the other
hand in case of license individual has given right to taken specific action with permission of
owner of land.
Types of lease
Lease agreements are of two kinds. Based on the conditions in agreements lease
agreements are divided into two categories.
In the first case of lease agreements property is allotted for the agreed period of time.
In this lease agreement property is allotted to the person for the agreed period of time.

Complete possession of property is granted to the person. Lease agreements are based on the
agreed price between both the persons. This is among the most common lease agreements
that entertains between peoples and entities (Gbadegesin and et.al., 2016). Most of the
companies are entertained this lease as it allows them to utilise the property for the pre
decided period of lease. Owner of the property do not interfere much in this lease agreement
if the operations are entertained as per the conditions involved in the lease agreement. This is
an effective method of lease which allows both possession and effective control over the
lease property. In these agreements complete possession of property is admissible. Due to
complete possession over the property occupier can also come into further agreements.
Occupier can also transfer the property to any third party by making contracts. This lease
agreement provides exclusive right over the property to occupier.
Another lease agreement are entertained in United Kingdom. This is call as license.
Due to the license over property possession is granted. In this agreement occupier of the
property do not hold the complete possession of the property. In absence to complete
possession over property the occupier of the property as per the agreement cannot transfer the
property to any third party. Further transfer of property is prohibited in this agreement. In this
the total period of occupation of property is also not fixed. Property can be transferred any
time to the original owner of the property.
Difference between legal and equitable lease
Differences between legal and equitable lease can be summarised in the following
manners.
Point of difference Legal Lease Equitable Lease
Meaning Legal lease is defined as
granting true ownership to
the lease holder.
All the ownership rights are
granted under the legal lease
to the holder of lease.
Equitable lease are defined as
the lease other than the legal
lease.
Lease holder is granted
power over the leased
property but in limitations.
Rights In this lease agreement lease
holder get rights such as
mineral rights, easement
rights, development rights,
In this lease agreements lease
holder get some rights over
the property. Rights such as
conveyance right, privacy,

possession and control,
exclusive use, conveyance
rights and right of disposition
(Haller and et.al., 2019).
easement right and other
associated rights over the
property.
Limitations This lease agreement
provides much right over the
leased property to the lease
holder.
Limitations are restricted
only to few amounts under
this lease agreement.
Lease holder can be projected
as the owner of the property
except the fact that he can
hold the ownership title in
this lease agreement.
This lease agreement is
controlled with the support of
different limitations.
All limitations are set in this
lease agreements are based
on the proposed agreement
involve in the lease (Yoshida
and Banba, 2017).
Both the owner and lease
holder pre decided all the
rights over the leased asset.
Owner can put any condition
that creates limitation in
order to use the property.
Possession Possession in this lease
agreement is generally for
longer period of time more
than the equitable lease
agreement.
Owner provides possession
in this lease agreement to the
lease holder for the effective
period of time involved in the
lease agreement.
In this lease agreement
property are transferred for
possession only for the
limited period of time.
Whenever the total term of
lease gets over the property
possession takes back from
the lease holder by owner of
the property.
The above differences are the key differences between legal lease and equitable lease.

Application to law
As per the information stated in case study about the Mr. Kim and Shiraj. The
information mentioned that the property is allotted based on the license. The case study
demonstrates the fact that the property is allotted on the basis of license not on the basis of
lease. In case of license the term of contact does not consider any time to hold the property
between both the party. In case of lease the term is denoted on the contract in respect to hold
the property. In the information provided in case study total term to hold the property is not
mentioned (Kononenko, 2019). Further the case study does not project any condition that
reflects that it was a lease agreement between Mr. Kim and Shiraj. The property was allotted
on the basis of the commission price worth £ 100.
It also indicates that the property is licensed between both the parties not allotted on
the basis of lease agreement. Based on the legislation Mr. Kim can take the possession of the
property any time from the Shiraj. In case of license property can be possessed back by the
owner at any time. Property in license agreement is also allotted for the limited period of
time. This is the clear case that indicates that property is licensed between both the parties not
allotted on the basis of lease agreement (Simpso and Hawkins, 2018). All the facts states that
the property is licensed not leased to the Shiraj by Mr. Kim. Based on the legislative rights it
can further states that in case of licensed property agreed price for the per month payment as
a license fees has to pay by the holder of leases property. From past few months Shiraj din
not pay the per month amount which also creates further dues over the Shiraj in against to use
the property of Mr. Kin. Owner has the statutory rights to collect all the dues from the Shiraj
based on the terms of agreement. In agreement it will clearly state that how much shiraz
needs to pay per month in against to use the property. Based on the all the legal rights hold by
Mr. Kin over the property it can be stated that Mr. Kin gets both the rights he can get the
possession back on the property and also get the right to get the respective dues from Shiraj.
Options available for Mr. Kim
Based on the different facts projected in the case study between Mr. Kim and Shiraj is
can be said that the agreement between both the parties are licensing agreement over the
property not the lease agreement. Mr. Kim can collect all dues from the Shiraj based on the
legislative rights (Permadi and Dewantara, 2018). Mr. Kim also Carry the right to legally
remove Shiraj from the possession of property. In case of license of property owner has the
legal right to remove the other person any time based on the practical situation. The other
person involved in the lease do not consist any rights against the owner in respect to

removing from the property. Mr. Kim carries all the above mentioned rights against the Shiraj
in the present case.
CONCLUSION
This report has demonstrated different details in respect to lease agreement. This
report has concluded forms, possession, terms and other key information about the lease
agreement. This report also indicates about the key differences like ownership, possession,
time and other key differences between license and lease. Lease can be summarised into two
types one is lease and other one is license. Different factors projects the differences between
lease and license like rights and other has summarised in this report. It can be stated that the
Mr. Kin can remove the Shiraj based on the licensing agreement.

REFERENCES
Books and Journals
Balla, E., 2016. Land Readjustment as a tool for Urban Development in Greece: the
implementation gap between Laws, Policies and Practice. In Symposium on Land
Consolidation and Land Readjustment for Sustainable Development/LANDNET
Workshop 2016.
Black, A., 2019. Cultural expertise in Australia: colonial laws, customs, and emergent legal
pluralism. Cultural Expertise and Socio-Legal Studies, 78, p.133À155.
Brown, A. and Sinclair, A., 2019. The politics of hate speech laws. Routledge.
Gbadegesin, J. T. and et.al., 2016. Investigating defiant attitudes in keeping lease agreement
obligations in private rental housing market in Nigeria. Property Management.
Haller, T. and et.al., 2019. Large-Scale Land Acquisition as Commons Grabbing: A
Comparative Analysis of Six African Case Studies. In Global Perspectives on Long
Term Community Resource Management (pp. 125-164). Springer, Cham.
King, R., 2019. Land reform: a world survey. Routledge.
Kononenko, O., 2019. Transformation of land relations regulation mechanism throughout the
rural sustainable development context. Agricultural and Resource Economics:
International Scientific E-Journal. 5(1868-2019-788). pp.19-36.
Leitman Bailey, A. and Katz, I., 2018. Analyzing Easement Laws and Cases in the States
East of the Mississippi River. Appraisal Journal, 86(1).
Permadi, I. and Dewantara, R., 2018, September. Land Rights Disputes Between Landowners
And Mining Companies: A Case Study In Banyuwangi Regency, East Java,
Indonesia. In 2018 International Conference on Energy and Mining Law (ICEML
2018). Atlantis Press.
Simpson, M. and Hawkins, T., 2018. Regime Survival and the Fast Track Land Reform
Programme. In The Primacy of Regime Survival (pp. 87-119). Palgrave Macmillan,
Cham.

Yoshida, Y. and Banba, M., 2017. Flood Disaster Mitigation Measures Through Land Use
Management in the UK and France. In Land Use Management in Disaster Risk
Reduction (pp. 405-448). Springer, Tokyo.