National Real Estate Practice Exam

What distinguishes a license from an easement?

1. Licenses are permanent rights

2. Licenses are non-assignable privileges

3. Licenses confer ownership rights

4. Licenses require a deed

The correct answer is: Licenses are non-assignable privileges

A license is a non-assignable privilege that grants permission to an individual to perform a specific act on someone else's property without transferring any ownership interest. This is a key characteristic that sets a license apart from an easement. An easement, on the other hand, is a more formal and potentially permanent right that allows one party to use another's land for a specific purpose, and it is generally assignable to future owners of the land. Licenses are often temporary and can be revoked at the discretion of the property owner, which emphasizes their non-assignable nature. They do not confer any lasting rights to the holder, nor do they require a formal deed for their establishment. In contrast, easements typically require legal documentation and can create long-term rights that affect the use of the property irrespective of changes in ownership. This fundamental difference in their nature and implications is what differentiates licenses from easements.