What is the difference between a lease and a license?

The distinction between a lease and a license is essential in property law, particularly in understanding rights and interests in real property. The correct choice emphasizes that a lease grants exclusive possession of a property for a specified period, which means the lessee effectively has control over the property and the legal right to exclude others, including the landlord, during the lease term. This exclusive possession is a key characteristic that distinguishes a lease from other arrangements.

In contrast, a license does not convey any possessory interest in the property; rather, it provides permission for temporary use of the property without transferring any ownership rights. A license can be revoked at any time by the licensor and does not provide the same level of security or control that a lease does, as it does not grant exclusive possession.

Understanding this difference is crucial for both landlords and tenants, as it affects their rights, obligations, and the nature of their agreements. The methods of termination and legal implications for each arrangement also differ significantly. Thus, the primary distinction rests on exclusive possession granted by a lease versus mere permission to use property inherent in a license.