Lease, Licence, or Sublet: What You Are Actually Signing

What is the difference between a lease, a licence, and a sublet?

A lease generally gives you a property interest and exclusive possession of a defined space for a defined term. A licence generally gives you permission to use space without that property interest, and is usually easier for either side to end. A sublet means taking space from an existing tenant rather than from the owner, so your rights depend on their lease as well as on your agreement. The labels matter less than the terms inside — an agreement called a licence can still function as a lease, and courts look at substance rather than the title on page one.

That last point is the one most worth carrying into a negotiation. Do not reason from the name of the document. Read what it actually grants, for how long, and on what notice.

What does a licence to occupy actually give me?

Typically the right to use a specified space on specified terms, without the property interest a lease carries — which usually means fewer statutory protections, a shorter commitment, and easier exit for both sides. For a solo practice that wants flexibility, that trade is often the right one; the thing to check is what notice the operator can give you, not just what notice you must give them.

Questions worth asking about any licence:

• How much notice can the operator give me, and for what reasons?
• Is my room specified, or can I be moved to an equivalent one? If it can be moved, what counts as equivalent?
• What happens to my agreement if the operator’s own lease ends? This is the question people forget, and it is the one that decides what happens in the worst case.
• Can I have exclusive use, and is that written down?

What am I taking on with a sublet?

You are taking space from someone who is themselves a tenant, so you inherit the constraints of their lease and, usually, the risk that it ends. Ask to see the head lease, confirm that subletting is permitted at all, and confirm in writing that the landlord has consented — a sublet made without required consent can be a breach that puts the whole arrangement at risk.

Ask directly what happens to you if the head tenant stops paying or leaves. Sometimes the answer is fine and documented. Sometimes there is no answer, and that is itself the answer.

Which questions should I take to a lawyer?

Take the actual document, and ask specifically about: what you are granted and for how long, notice and termination on both sides, what happens if the operator's own interest ends, restoration obligations at exit, insurance and indemnity clauses, and anything tying payment to your revenue. An hour on a short agreement is cheap next to the cost of discovering a term after it has bitten.

Flag revenue-based arrangements explicitly. If any part of what you pay is a share of what you collect, rather than rent for space, that is a materially different arrangement — and for licensed medical practitioners in some states, including New York, fee-splitting and the corporate practice of medicine doctrine make it a question worth asking before signing rather than after.

Does the name of the agreement change my professional obligations?

No. Your obligations to your clients — confidentiality, record-keeping, licensure, insurance — come from your profession and your regulator, not from the property agreement. A space can make meeting them easier or harder, but no agreement transfers them to the operator, and any operator suggesting otherwise is describing something they cannot deliver.