Lease and licence problem question Essay Example | Topics and Well Written Essays - 1500 words

Lease and licence problem question - Essay Example He thinks of selling the property and moving away in future. Two weeks ago, while his wife was away visiting his elderly mother and Peter was on a business trip, he found a buyer, David Matthews who was prepared to offer cash for quick sale. The Fate of Alice and Peter According to Legal Principles and Authorities A licence is a contractual right to use a property particularly land that would otherwise be illegal. Conversely, a lease is an interest of land that is given by the lesser to a lessee for a defined period of time while granting exclusive possession. In light of this, it is clear that Jeffrey has the legal rights over the property at Georgetown, and hence has title to the property. Needless to mention, Jeffrey is among the people who have indefeasibility of title. According to property law, this means that Jeffrey is included in the title as the owner who has an indefeasible or unquestionable title of the property. Besides, the state guarantees the correctness of the inform ation contained on the title and is, therefore, liable to provide compensation under assurance fund. Thus, legal interests are solely concerned with ownership of property as in the case of Jeffrey who has control that is associated with the ownership.1 With this regard, it is entirely challenging for his wife Alice to claim any legal right for the property even though she is married to him. The fact that Alice moved into the property in 2005, and has continually spent a considerable amount of her savings in renovating the property to an extent of converting the top floor into an apartment, which Jeffrey later leases out to Peter, a businessman for five years, a situation that does not recognise her as an exclusive or shared possessor. Simply, Alice could only be recognised by Law, only if she was registered as one with ‘equitable interest’ to the property. This way Alice would be entitled to the benefits of the property. None the less, individuals with ‘equitable interests’ are not in a position to lay claims against an innocent third party who purchases the legal interest of the property. Apparently, the quick sale of the property of Jeffrey to Matthews leaves Alice with no right of ownership or claim for ownership even if she had ‘equitable interest’ for the property. Jeffrey then leases part of the property to Peter, an international businessman for a period of five years even though, Peter is an absentee lessee for a certain period of the year. According to Law, leasehold interest on the property is created by a formation of lease, which mainly comprises of lessor (Jeffrey) and lessee (Peter). A lease (Jeffrey) gives the lessee (Peter) exclusive possession of property for a specific period of time which in this case is five years in exchange for payment or rent. Of important note is that, a lease can be registered on the title, for a set period.2 This gives the right to sublet, assign or sell unexpired portion with th e landlord’s consent, right to exclusive possession, over and above, the right to sue in case of trespass. Indeed, business that exist between Jeffery and Peter is recognised as leasing according to Property Law for the reason that it exceeds three years and therefore a deed is necessary to conform its validity. Additionally, the