Paralegal Advanced Competency Exam (PACE) Practice Exam

What is the primary purpose of a license in property law?

1. A special permission to use someone else's property

2. A permanent right to occupy land

3. An ownership transfer of real estate

4. A method to charge rent for property use

The correct answer is: A special permission to use someone else's property

The primary purpose of a license in property law is to grant special permission for someone to use another person's property in a manner that would otherwise be considered unlawful. This permission does not create a possessory interest in the property, meaning the licensee does not acquire any ownership rights or interest in the land itself. A license is typically temporary and can be revoked by the property owner at any time, making it distinct from other forms of property interests like leases or easements, which provide more permanent rights or interests. In this context, the other options do not accurately define a license. A permanent right to occupy land refers to a leasehold interest or ownership, which is not applicable to a license. Ownership transfer of real estate describes the act of selling or conveying property, which is entirely different from what a license entails. Lastly, charging rent for property use is generally associated with lease agreements rather than licenses, which do not create a landlord-tenant relationship. Thus, the understanding of a license as a special permission encapsulates its primary purpose in property law.