Learn more about how owners can start using licenses rather than leases. However, the use of a licensing agreement instead of a lease agreement will not completely exclude all possibilities of litigation between the owner-licensee and the licensee. Whether the “self-help” used was peaceful (and therefore legal) or forced (and therefore illegal) is always a possible contentious issue. However, if there is a valid licensing agreement, the owner licensee is not required to reinstate the deposed licensee on the premises, even if it turns out that the self-help used is binding and un pacified. In New York, the licensee`s only recourse is the triple damages that RPAPL 853 provides for violent ejection. In the meantime, the owner`s licensee is free, before a court ruling, to re-elect the use of the premises to another licensee. The legal relationship between the landowner and a tenant resulting from a tenancy agreement is totally different from the legal relationship established by a license between the landowner and a licensee. On the other hand, under a good faith licensing agreement, the licensee tenant does not own land on the premises and has no property rights. General principles apply and the owner licensee has the absolute right to use peaceful assistance at any time to remove a licensee from licensed premises for some reason or reason.
It is therefore necessary to draft appropriate licensing agreements carefully and, to that end, there must be close cooperation between lawyers and their clients who wish to set up a licensing system. Communication with the customer about the risks and benefits of using a licensing system will be essential. In addition, lawyers must consider the client`s objectives and determine the initial cost that the client is willing to accept to offer the type of “full service” agreement that will pass the “licensing test” of a court. A few years ago, I met one of New York`s real estate legends and the general of his company. He was concerned about the New York eviction process – the loss of rental income, wasted legal fees and the incredible delay between a tenant`s default and actual eviction. Self-help is not available to New York homeowners who reserve the right to use it in their leases. However, courts are generally hostile to the use of a lessor`s self-help and will not allow its use if there is a blurring of the lease conditions or if there is a factual question as to whether the lease has expired or not. In addition, if a tenant is evicted from the property by force or other illegal means, the tenant may, under the New York Real Estate and Procedural Actions Act 853 (“RPAPL”), recover three damages from the lessor and be returned to possession if he is rejected before the expiry of the tenancy period.