License and Leases...

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A lease grants the tenant an interest in real estate with exclusive possession for a fixed term. It behaves like a property right that "runs with the land." A license is a personal, revocable contract giving mere permission to use a space without transferring property rights. [1, 2, 3, 4]
Core Differences
Feature [1, 2, 3, 4, 5, 6, 7]LeaseLicense
Exclusive PossessionTenant has the right to exclude all others, including the owner.Occupant shares space or the owner retains entry rights.
Legal NatureCreates a legal estate/interest in land ("real property").Purely a personal, contractual agreement ("personal privilege").
Survival of Property SaleStays in effect; the new property owner must honor it.Usually terminates if the underlying property is sold or changes hands.
Tenant ProtectionsHeavily governed by landlord-tenant acts, offering eviction protections.Generally fewer statutory protections; easily revoked for rule breaches.
TransferabilityCan usually be assigned or sublet (subject to contract terms).Strictly personal to the licensee and cannot be sublet/transferred.
Why the Distinction Matters
Courts look at how the agreement operates in practice rather than just the title written at the top of the contract. If a contract is labeled a "license" but grants the user exclusive control over a locked room for a year, a court may legally reclassify it as a lease. [1, 2]
  • Leases are best for long-term, stable commercial or residential tenants who need certainty and security.
  • Licenses are ideal for short-term arrangements like pop-up shops, co-working desks, parking spots, or facility use agreements. [1, 2, 3, 4]
For a deeper dive into the legal frameworks and rules, you can review the Canada Revenue Agency guide on lease vs. license. [1]
If you are trying to determine which agreement fits your specific scenario, it would help to know:
  • What type of space is being occupied (office, retail, land)?
  • What is the intended duration of the agreement?
  • Do you need exclusive access or shared access?

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