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Licences and leases

The right to occupy premises can be granted by a lease or a licence. The main test that distinguishes a lease from a licence is that a lease confers on the occupier exclusive possession. There is usually no exclusive possession under a licence.

Licences are often coupled with a lease, ie a licence for storage, car parking or outdoor seating area.

There are different types of licences and leases. It is important that the different types of licences and leases be distinguished as they impact upon transactional aspects and the rights of the parties.


South Australia

Please note that the definition of “retail shop lease” in the Retail and Commercial Leases Act 1995 (SA) includes both leases and licences.

See Licences and leases.

Australian Capital Territory

As all land in the ACT is leasehold any lease granted by the registered proprietor of land is therefore a sublease.

Note that the definition of “lease” for the purposes of the Leases (Commercial and Retail) Act 2001 (ACT) includes licences. See s 12 Leases (Commercial and Retail) Act 2001 (ACT).