License to Occupy v. Lease Agreement (Commercial)

From Riverview Legal Group


Campbell v. 1493951 Ontario Inc., 2020 ONSC 4029 (CanLII)[1]

[11] An agreement will constitute a lease if it grants, and was intended to grant, exclusive possession of the premises to the occupant.[2] I am satisfied that the agreement between Mr. Campbell and Tri-Echo was a sub-lease.


[1] [2]

Harvey v. Bingemans and Waterloo Region Police, 2022 ONSC 3905 (CanLII)[3]

[26] There is a difference between a license and a lease. A license is a permission to use a property. It does not convey a leasehold interest in the land. With a license, one becomes a licensee; with a lease, one becomes a tenant. There are similarities between the rights of tenants and licensees, but they are not the same. The concepts cannot be used interchangeably.

[27] A licensee is permitted to enter onto lands, with the permission or consent of the owner. A license gives the licensee the right to do something on the owner’s property, which the owner could otherwise prevent.

[28] Generally, a lease exists where the owner agrees to turn over exclusive possession of the property to another for a period of time. The conveyance of exclusive possession is an essential characteristic of a lease. A license, on the other hand, is an agreement that gives the licensee permission to use the land only at the owner’s discretion. A license is a revocable privilege.


[3]

References

  1. 1.0 1.1 Campbell v. 1493951 Ontario Inc., 2020 ONSC 4029 (CanLII), <https://canlii.ca/t/j99fz>, retrieved on 2022-07-27
  2. 2.0 2.1 Stoneridge Travel Centre Inc. v. 1079334 Ontario Ltd., 2000 CanLII 27013 (ON CA), <https://canlii.ca/t/234fn>, retrieved on 2022-07-27
  3. 3.0 3.1 Harvey v. Bingemans and Waterloo Region Police, 2022 ONSC 3905 (CanLII), <https://canlii.ca/t/jq25b>, retrieved on 2022-07-27