Licensee

Definition

A licensee is an individual or entity who is granted a license to perform certain activities, use property, or occupy premises without being considered a customer, servant, or trespasser. Unlike a tenant, a licensee does not have a contractual relationship with the property owner but is allowed on the property primarily for their own interest, convenience, or gratification. In a legal context, a licensee is tolerated rather than formally invited by the property owner.

Examples

Examples in Context

Real Estate: A person attending an open house purely out of curiosity, without intending to buy or rent, is considered a licensee.
Software: A person using trial software without purchasing a full license can be considered a licensee.
Events: Someone attending a private event as a guest without a formal invitation falls under the category of a licensee.

Frequently Asked Questions

What rights does a licensee have?

A licensee has the right to use or access the property as per the terms of the license but does not have the same rights as an invitee or tenant. Their presence is tolerated, and the property owner owes them a duty to refrain from willfully injuring them or exposing them to hidden dangers.

How is a licensee different from an invitee?

A licensee is on the property for their own interest or convenience, without an express invitation, whereas an invitee is invited by the owner for a mutual benefit, such as a customer in a store.

Can a licensee be revoked?

Yes, unlike a tenancy, a licensing arrangement can typically be revoked at any time by the property owner.

What is the liability of a property owner toward a licensee?

A property owner must avoid willful or reckless harm against a licensee and must warn them of non-obvious dangers that the owner is aware of.

License

A license is a legal permission granted by an authority to perform a particular activity or occupy a piece of property.

Invitee

An invitee is someone who is invited onto property for a mutual benefit, such as a customer in a business.

Trespasser

A trespasser is someone who enters or remains on property without permission.

Tenant

A tenant is someone who rents property from a landlord under a contractual agreement.

Servant

A servant is a person employed to perform services in the household of an employer.

Permissible Use

Permissible use refers to the conditions and context under which a licensee is allowed to use a property or service.

Online References

Suggested Books for Further Studies

“Real Estate License Exam Prep: All-in-One Review and Testing” by Trevor Stone and John A. Yoegel
“The Law of Property” by Roger John Smith
“Understanding Licensing Agreements” by Gregory J. Battersby and Charles W. Grimes

Fundamentals of Licensee: Legal Basics Quiz

### Who is considered a licensee? - [ ] Someone with a lease agreement - [ ] A property manager - [x] An individual allowed on the property for their own interest - [ ] A paying customer > **Explanation:** A licensee is an individual who is allowed on the property for their own interest, convenience, or gratification without establishing a formal contract or business relationship with the owner. ### What duty does a property owner owe to a licensee? - [ ] No duty at all - [x] Duty to warn of hidden dangers - [ ] Duty to make periodic repairs - [ ] Duty to provide financial compensation > **Explanation:** The property owner must warn the licensee of hidden dangers that the owner knows about but has no obligation to make repairs or improvements for the licensee. ### Can a license be revoked? - [x] Yes, it can be revoked by the property owner at any time. - [ ] No, it is a permanent arrangement. - [ ] Only after a written notice. - [ ] Only if the licensee consents. > **Explanation:** Unlike a lease agreement, a license can typically be revoked at the discretion of the property owner. ### What is a primary distinction between a licensee and an invitee? - [x] The purpose of their presence - [ ] The duration of their stay - [ ] The type of property they are on - [ ] The legal documentation > **Explanation:** A licensee is on the property primarily for their own interest or convenience, while an invitee is present for mutual benefit. ### Which of the following does NOT describe a licensee? - [ ] A customer browsing a store - [ ] A guest at a party - [x] A homeowner on their own property - [ ] A person using free trial software > **Explanation:** A homeowner on their own property cannot be considered a licensee by their own definition. ### In legal terms, how is a licensee different from a trespasser? - [ ] A licensee has less access to the property - [ ] A licensee must always have a written agreement - [x] A licensee is allowed to be on the property, while a trespasser is not - [ ] A licensee has ownership rights > **Explanation:** A licensee has the property owner's permission to be on the property, unlike a trespasser, who is there without permission. ### What is usually required for a person to become a licensee? - [x] Permission from the property owner - [ ] A lease agreement - [ ] Monetary payment - [ ] Permanent residency > **Explanation:** A licensee usually just needs permission from the property owner, with no formal lease agreement or monetary payment involved. ### Which best indicates a licensee status? - [ ] Someone employed by the property owner - [ ] Someone renting property - [x] Someone using amenities without contract obligations - [ ] Someone maintaining the property > **Explanation:** A licensee uses the property or amenities primarily for their own interest without any contractual obligations. ### In terms of risk, what must a property owner avoid concerning a licensee? - [ ] Personal friendship - [x] Willful or reckless harm - [ ] Financial interactions - [ ] Direct communication > **Explanation:** The property owner must refrain from willful or reckless harm towards a licensee. ### Which scenario depicts a licensee situation? - [ ] A tenant leasing an apartment - [ ] A landlord inspecting rental property - [x] A person visiting a friend’s house - [ ] A customer buying a product > **Explanation:** A person visiting a friend’s house may be considered a licensee, as their presence is primarily for personal interest or social purposes.

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