Licence Agreements
Sharing space, renting a room or letting someone use part of your premises? A licence is a different document to a lease - and getting the choice wrong is expensive.
- Fixed fee of $750 + GST to prepare your licence agreement.
- We act for either side - the licensor granting the right, or the licensee taking it.
- Drafted to reflect the terms you have already agreed, not renegotiated for you.
- A qualified property lawyer, so the document is a licence in substance and not just in name.
The basics
What Is a Licence Agreement?
A licence agreement is a written permission for one party to use or occupy premises belonging to another, without giving them a legal interest in the land. It is a personal right between the 2 parties - not a lease.
The practical difference is exclusive possession. A tenant under a lease gets a defined area for a defined term and can shut the door on everyone, including the owner. A licensee gets permission to use space on agreed terms, and the owner keeps control of the premises.
That distinction drives everything that follows: whether the arrangement can be registered on title, whether it survives a sale of the property, how easily it can be ended, and whether retail leasing legislation applies. It is also why the label on the front page is not decisive. A document called a licence that in substance grants exclusive possession can be treated as a lease, with all the obligations that brings.
When a licence is the right document
Common Uses for a Licence Agreement
Licences are everywhere in commercial property. If you are sharing space, sub-letting part of a room, or letting someone use an area for a limited purpose, a licence is often the cleaner document.
Consulting and Clinical Rooms
Allied health, medical, dental and psychology practices sharing rooms on set days, with reception and equipment shared between practitioners.
Desk, Chair and Studio Space
Hairdressing chairs, beauty rooms, studio hire, co-working desks and serviced office space taken on a rolling basis.
Part of a Larger Premises
A tenant letting another business use part of its warehouse, office or shop - usually with the head landlord's consent.
Car Parking and Storage
Parking bays, storage cages, container and yard space licensed separately from the main premises.
Signage, Rooftop and Antennas
Advertising signs, solar and rooftop installations, and telecommunications equipment placed on a building.
Short-Term and Early Access
Pop-up shops, market stalls, film and event use, and access to premises before a settlement or before a lease formally starts.
Have the terms already agreed? We can have the document to you quickly.
Request a Licence AgreementThe distinction that matters
Licence or Lease?
These are the practical differences. The right answer depends on what the parties actually intend to happen on the ground, not on what the document is called.
| Issue | Licence | Lease |
|---|---|---|
| Possession | Permission to use the space. The owner keeps control and can generally come and go. | Exclusive possession of a defined area. The tenant can exclude everyone, including the owner. |
| Interest in land | None. It is a personal right between the 2 parties. | Creates a legal interest in the land. |
| Registration | Cannot be registered on title. | Can be registered where the term is long enough. |
| If the property sells | Generally does not bind the new owner. The licensee may have to leave. | A registered lease binds the buyer. Unregistered leases may still bind them. |
| Ending it | Usually on notice, on the terms you agree. Far more flexible. | Runs for the term. Ending early needs a surrender or a break right. |
| Retail leasing legislation | Can still apply where the premises are used as a retail shop, whatever the document is called. | Applies to retail shop leases, with disclosure statements and minimum terms. |
| Transferring it | Personal to the licensee. Usually not assignable. | Assignable, subject to the landlord's consent. |
| Best suited to | Shared, part-time, short-term or non-exclusive use of space. | A business that needs its own premises and security of tenure. |
A document is judged on its substance. If what you have actually granted is exclusive possession of a defined area for a term, calling it a licence will not stop a court or a tribunal treating it as a lease.
Who we act for
Either Side of the Arrangement
Owners and Head Tenants
You have space you are not using and someone wants to use it. You want the income without accidentally creating a tenancy you cannot end, and without breaching your own lease.
Businesses Taking Space
You are taking a room, a chair, a bay or a desk. You want to know how much notice you get, what you are actually paying for, and what happens if the owner sells or their lease ends.
Practices Sharing Premises
Several practitioners under one roof, sharing reception, equipment and costs. You want the shared arrangements, the fees and the exit written down before there is a disagreement.
What goes wrong
6 Risks in a Poorly Drafted Licence
It Is Really a Lease
Give a licensee their own lockable room, a fixed term and their own key, and you have almost certainly granted a lease. The consequences follow whether you intended them or not.
No Head Landlord Consent
If you lease your premises, letting someone else occupy part of them usually needs the landlord's written consent. Doing it without consent can be a breach of your lease.
Retail Legislation Applies Anyway
Where the space is used as a retail shop, retail leasing legislation can still catch the arrangement - bringing disclosure obligations and minimum terms with it.
Nothing Said About Ending It
No notice period, no termination rights and no exit process. When the relationship sours, neither side knows where they stand and the argument becomes expensive.
Insurance and Liability Gaps
No public liability cover, no indemnity, and no clarity on who is responsible for the space, the equipment or an injury to a client. Insurers ask to see the document.
Fees, GST and Outgoings Unclear
What the fee covers, whether GST is on top, who pays for cleaning, utilities and consumables, and how the fee changes. Vague terms today are a dispute in 6 months.
Already had a disagreement over shared space? We act in those disputes too.
See Commercial LitigationHow it works
From Agreed Terms to Signed Document
Our fixed fee covers preparing the licence agreement on the terms you have already negotiated and understood. We are documenting your deal, not renegotiating it for you.
Tell Us the Deal
The parties, the space, the days and hours, the fee and how it is paid, the term and the notice period. A short email or a phone call is usually enough.
We Confirm It Should Be a Licence
Before drafting we check the arrangement genuinely is a licence. If what you have described is really a lease, we tell you straight away rather than papering over it.
We Prepare the Agreement
A complete licence agreement covering use, fees and GST, term and termination, insurance and indemnity, access, shared facilities, and what happens if the head lease ends.
You Review and We Adjust
We send it through for your review and make the changes you need to reflect what was agreed.
Signing
We finalise the document for signing by both parties and confirm what each side should keep on file.
If It Becomes Something Bigger
If the arrangement should really be a lease, or consent is needed from a head landlord, we can handle that as a separate piece of work and quote it before we start.
What the $750 + GST covers
Preparing the licence agreement based on the terms you have already agreed, one round of amendments after your review, and finalising it for signing. It does not include negotiating the commercial terms with the other side, obtaining a head landlord's consent, registering anything, or advising on a dispute. If your matter needs any of that we will tell you first and quote it separately.
Terms agreed? We can turn the document around quickly.
Get Started - $750 + GSTWhy Have a Lawyer Prepare It
The Label Is Not the Test
A property lawyer drafts so the document is a licence in substance, not just in name - which is the whole point of choosing one.
We Check Your Head Lease
If you are a tenant licensing part of your premises, we flag whether your own lease permits it and whether consent is required.
Retail Exposure Considered
Where the space is used as a retail shop we tell you whether retail leasing legislation is likely to apply, before you commit.
A Clean Exit
Notice periods, termination rights and what happens to fit-out and equipment - written down while everyone is still getting along.
Fixed Fee, Agreed Up Front
$750 + GST, confirmed in writing before we begin, whichever side of the arrangement you are on.
The Same Firm If It Escalates
If a shared-space arrangement turns into a dispute, you are already with a firm that runs commercial property litigation.
Get the document right the first time.
Talk to UsA licence is one of several ways to document who occupies what. If your arrangement is closer to a lease, or you have been handed a document to sign, these are the pages to read next.
Licence Agreement Questions, Answered
What is the difference between a licence and a lease?
Can I just call it a licence to avoid the lease rules?
Do I need my landlord's permission to licence part of my premises?
Does a licence survive if the property is sold?
Can retail leasing legislation apply to a licence?
How much does a licence agreement cost?
How quickly can you turn one around?
What if we already have a dispute about shared space?
Still not sure whether you need a licence or a lease?
Ask Us DirectlyPut the Arrangement in Writing
Most shared-space disputes start with a handshake and no document. If you have agreed the terms, we will prepare a licence agreement that reflects them properly - for a fixed $750 + GST, acting for either side.
Request a Licence Agreement