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Meryllyn Page
Conveyancing
LICENCE AGREEMENT
A licence is an agreement given by the owner of property for another party to do something on the property, which might normally be a trespass. If the vendor agrees to early possession of the property to the purchaser it is usually done under a licence agreement. The contract covers conditions of early possession under clause 18.
If a licence is granted it creates no interest in the property and is personal between the licensee and the licensor (vendor and purchaser). A licence for early possession is quite often done by the exchange of letters or may be done by entering into a licensee agreement. It is essential that whatever way the agreement is drawn that a landlord tenancy arrangement is not created. The vendor must be sure that he has a clear right to evict the purchaser should it become necessary to do so.