What is the difference between a lease and a license?

A lease and a license are both legal agreements but there are distinct differences between the two. A lease is an agreement between the owner of a property, known as the lessor, and the person renting or leasing the property, known as the lessee. The lessor grants the lessee exclusive possession and use of the property for a set period of time for a set amount of money. A lease generally gives the lessee rights to the property for an extended period of time, usually from one to five years or more. A license is a less formal agreement between two parties that grants the licensee the right to use the property of another party, known as the licensor, for a specific purpose. Unlike a lease, a license does not grant exclusive possession and use of the property. A licensee may only be granted the right to use the property for a specific purpose, such as hunting or fishing. A license can be revoked or modified more easily than a lease, which typically requires the lessee to agree to any changes or terminations of the agreement. In Washington, both leases and licenses are governed by the same state laws and are defined by the Revised Code of Washington. Regardless of the agreement, the parties are free to negotiate the terms and conditions of the agreement to suit their individual needs.

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