What is the main difference between leases and licenses?

The main difference between leases and licenses primarily revolves around the concept of exclusivity of interest. A lease grants the lessee exclusive rights to use and occupy a property for a specified duration in exchange for payment, which creates a legal interest in that property. This exclusivity means the lessee has the authority to control the property and may lawfully exclude others, including the lessor, from that space during the lease term.

In contrast, a license provides permission to use someone else's property without transferring any legal rights to it. Licenses do not confer exclusivity; the property owner retains the right to enter and use the property, and the license can often be revoked at the will of the property owner.

Understanding this distinction is crucial as it affects the rights and responsibilities of both parties involved in the agreement. The nature of exclusivity directly influences various legal outcomes, including eviction processes and the ability to enforce property rights.