Legal Aspects of Real Estate Practice Exam 2025 - Free Online Practice Questions and Study Guide

A license is a legal agreement that grants an individual the right to use another person's property under specific conditions without transferring ownership. When a license is issued, it gives the holder an exclusive privilege to use the property, but it does not confer any ownership rights. This means that while the licensee can enjoy the benefits of usage, they do not have the same legal claims as a property owner.

The exclusivity of the privilege means that only the licensee can engage in the specified use, and the property owner retains control and ownership. This distinction is important in real estate, as it highlights the nature of licenses compared to other interests in property such as leases or ownership.

Understanding the nature of a license is critical in real estate practice, as it affects how property is managed and what rights individuals have regarding property usage.