What is the difference between a lease and a license?

A lease and a license are two legal documents that are commonly confused in North Carolina property law. Both documents grant the user access to property, but the main differences lie in the rights and responsibilities they each provide. A lease is a formal written agreement between a landlord and a tenant that grants the tenant a right to occupy a property that belongs to the landlord. The tenant, or lessee, pays the landlord, or lessor, a predetermined amount of rent in exchange for exclusive possession of the property for a specific period of time. Within a lease, the tenant is usually provided with certain rights, such as the right to possession and the right to use the property as agreed upon in the contract. On the other hand, a license is a less formal agreement between the property owner and another party, granting the party access to the property. Unlike a lease, a license does not grant the party exclusive possession of the property, and the term of the license is usually much shorter. In addition, the rights granted to the licensee are usually fewer than those granted to a lessee. In conclusion, while a lease and a license both grant access to property, they are vastly different in terms of what rights and responsibilities they provide. A lease is often more comprehensive and detailed, granting the tenant exclusive possession of the property, whereas a license is less formal and grants fewer rights.

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