Commercial Licences - More Than You Bargained For?

If you grant a licence to use a commercial premises (or part of a commercial premises), you could be forgiven for thinking that this will prevent the user (or licensee) from successfully claiming tenancy rights. However, if a dispute arises, a court can look behind the terms agreed by the parties to determine whether, in reality, the agreement has the characteristics of a lease or a licence. So, even if you think you have a licence in place, a court might determine that what actually exists is a lease.

POTENTIAL IMPACT

If the user can establish a credible basis for arguing that the licence is, in reality, a lease, this could have far-reaching consequences. It may mean that the user is entitled under Irish landlord and tenant law to remain in the property for a further period. In such circumstances, the owner may be prevented from removing the user pending the determination of the tenancy claim. This will restrict the owner's freedom to deal with the premises and