Wendy represents clients in Illinois and Wisconsin in a large number of real estate and commercial real estate transactions. In addition to settling acquisitions, divestitures and leasing agreements, Wendy also advises lenders on credit transactions, credit training sessions, credit restructurings, forbearance and pre-trade deals. If you need help with a related matter, contact Wendy. To obtain the benefit of a license agreement, the owner must ensure that his agreement with the potential user of the premises is indeed a license and not a lease. This is not necessarily an easy task. Simply designating the agreement as a „license“ will not. Whether an agreement is considered a licence and not a lease depends on the existence or absence of the three essential features of a real estate licence in the agreement: (1) a clause allowing the licensor to revoke „after being defenced“; (2) the maintenance of absolute control of the premises by the licensor; and (3) the licensor shall make available to the licensee all essential services necessary for the licensee`s authorized use of the premises. A license only allows certain acts on the property of another and is revocable according to the will of the licensor. Licensors can generally use „self-help“ to remove a defaulting licensee from the licensed premises without having to engage the property in litigation (as is necessary for the evacuation of a tenant). There may be situations where commercial property owners can eliminate the traditional landlord-tenant relationship by using licensing agreements instead of lease agreements.
The courts have found that licences are leases for which one or more of these characteristics are either totally absent from the agreement or insufficiently transferred to the competences retained by the licensor. . . .