Exclusive possession is the legal right for a tenant to occupy premises to the exclusion of all others, including the landlord (subject to limited rights of entry), and is the key feature that distinguishes a lease from a licence. For your business, this distinction directly affects control, security and risk, as a lease grants stronger rights and protection, while a licence only provides permission to use the space and can often be terminated more easily. Misclassifying an arrangement can lead to unintended legal obligations or loss of rights. This article explains the difference between exclusive possession and a licence, and how each affects commercial property arrangements.<\/p>\n\n\n\n
In the context of commercial leases<\/a>, exclusive possession refers to a tenant\u2019s right to occupy a commercial property as their business premises. This means that the tenant has certain rights through their occupation of the property. <\/p>\n\n\n\n The rights that exclusive possession grants are the rights associated with those a landowner enjoys. This means that the commercial tenant can legally behave as if they were the landowner. More specifically, the lessee can:<\/p>\n\n\n\n However, you should note that while a commercial tenant enjoys these rights through exclusive possession, they cannot permanently exclude their landlord. This is because the commercial landlord can reserve some rights in the property, such as the right of entry. For example, they need to carry out work. Any reservations should be in the lease agreement.<\/p>\n\n\n\n Occupation is slightly different from exclusive possession. When a person occupies a commercial property, they have the right to occupy the premises physically. They will also have an agreement which details their legally binding contract to occupy the land. However, they do not enjoy the same rights as those which tenants enjoy by having exclusive possession. These are the rights that a landowner enjoys, as described above. <\/p>\n\n\n\n Therefore, a person in occupation is a commercial tenant with: <\/p>\n\n\n\n An undertenant is a person whom the primary tenant (head tenant) in a commercial lease sublets part of or all of the commercial property.<\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n\n
Occupation Under a Licence <\/h2>\n\n\n\n
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