What’s the Difference Between an Easement & a License Agreement?

04/02/2024 03:16 AM Mark Goodman

When a title company is underwriting an easement, it’s important to figure out if they are, in fact, dealing with an easement rather than a license agreement. Easements and licensing agreements have some similarities but it’s essential to delineate between the two. In this article, we are going to define the difference between an easement and a license agreement.

License Agreements vs. Easements

The biggest difference between license agreements and easements is how long they exist and how they can be terminated. An easement typically runs in perpetuity. There are some exceptions, but generally easements are thought of as being perpetual. License agreements, on the other hand, are typically set up to be terminable at-will or as detailed in the license agreement in question.

In other words, a license agreement is essentially permission to utilize another person’s property in the short-term, until the property owner chooses to terminate the license agreement or when the terms of the agreement have been fulfilled. An easement is more long-lasting and perpetual in nature.

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