What is the difference between a lease and a license?

A lease and a license are both forms of legal agreements between two or more parties; however, they differ significantly in nature. A lease is a legally binding written contract between a landlord (or lessor) and a tenant (or lessee). The tenant pays the landlord a negotiated amount of money in exchange for the right to occupy and use the property for a specified period of time. During the term of the lease, the landlord is typically responsible for maintaining the property and making necessary repairs. A license, on the other hand, is a revocable agreement between two parties granting the licensee (the party receiving the license) permission to use a certain piece of property for a specific purpose. Unlike a lease, a license is not a transfer of ownership. It is not a form of exclusive occupancy. The licensee does not have a legal interest in the property and the licensor can revoke the license at any time without notice. In Alaska, leases and licenses are legally binding agreements and are subject to the same rules and regulations. However, the terms of a lease provide more extensive rights and responsibilities than a license, and both the landlord and the tenant have the right to sue each other in court if the agreement is breached.

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