LICENSE TO…USE LAND? AN OVERVIEW OF LAND LICENSES
Much like a lease or an easement, a land license allows the holder the personal right to use the property of another. But there are key distinctions for one to consider in evaluating whether or not to enter into a land license arrangement.
What is a Land License?
A license to use land, which can be formed either in writing or orally, grants certain, generally revocable, powers to parties to perform certain actions on land. It does not, however, grant any ownership of the land to the licensee. The property burdened with the license is referred to as the servient tenement and the holder of a license is called a licensee. A license is a personal privilege held by an individual for the nonexclusive use of the servient tenement and it cannot be transferred to another individual; as such, a license does not create or convey an interest in real estate nor does it endow the licensee with a right to possession.
Distinctions Between a Land License and Other Common Encumbrances
While land licenses share similarities with other common encumbrances, like easements, leases, and adverse possession, there are key distinctions.
Easements: An easement, unlike a license, creates an exclusive, nonpossessory interest in real property. Moreover, an easement, unlike a license, is potentially irrevocable. While a license is a personal right, an easement runs with the land, meaning subsequent property owners are bound by the terms of the easement.
Leases: A lease is an agreement between a property owner and a tenant granting the tenant the exclusive right to possess the property. Leases, unlike licenses, are transferable and leases are not revocable until the term of the lease has expired. Notably, leases also typically connotate payment of rent while licenses may not.
Adverse Possession: Like a license, adverse possession does permit someone without any interest in another’s land to legally use the land. However, adverse possession requires that the property be possessed continuously, open and notoriously, for the prescribed period and – significantly – hostilely. Whereas a license is granted orally or in writing to the licensee, an adverse possessor does not have the permission of the land owner to use the land.
Is a Land License Right for Me?
In assessing whether or not a land license is right for your situation, it is important to keep in mind a license’s key features: they are (for the most part) revocable at any time, are personal and cannot be transferred, are not exclusive, and are not insurable. With that in mind, a license may be an option for you if you are looking for temporary, short term, or minor needs like, for instance, access for service vehicles or guests. They may also be an option for a landowner looking to grant a more temporary right to another to perform certain actions on the land.
If you are considering whether or not to pursue a land license, it is important to consult with a knowledgeable attorney as there may be pitfalls and unintended consequences in entering into a license.
Land licenses are a complex and detailed statutory structure. The information above is by no means exhaustive, and does not, and is not intended to, constitute legal advice. All information, content, and materials are for general informational purposes only and do not create an attorney-client relationship. The experienced and knowledgeable attorneys at Blake Law Firm are available to help you navigate land licenses, foreclosures, and other real property concerns.