What is the difference between a license, lease, or easement when a resident pays for and enters into an agreement for additional property? This Blog post will analyze the Third District Court of Appeal’s recent decision answering this questions in Keane v. President Condominium Ass’n, Inc., 3D13-746, 2014 WL 626710 (Fla. 3d DCA 2014) and opining on its impact to condominium operations.
Brian Keane purchased a condominium unit and, shortly after this purchase, paid the Association an additional $5,000 for an extra parking space. Id. at *1. The agreement, titled Parking Space License, was to run with the ownership of Mr. Keane’s unit. Id. Nearly ten years later the association notified Mr. Keane the license had been revoked. Id. Mr. Keane filed suit and the trial court determined the license was properly revoked; finding “revocation was proper as any rights [Mr.] Keane had pursuant to the parking license were personal to him and revocable by the Association.” Id. The Third DCA, affirming the trial court, reasoned that under Florida law a “license is generally revocable at the pleasure of the licensor/grantor.” Id. A license, unlike a lease or an easement, merely gives one the authority to do a particular act on another’s land; it does not grant an interest in real property. Id. Therefore, the unit holder’s parking space was revocable at the will of the association.
Florida law provides a narrow exception to the revocability rule. See Dance v. Tatum, 629 So. 2d 127 (Fla. 1993). This exception applies when (1) permission is granted to use the property for a particular purpose, and (2) in the execution of that use the permittee has expended large sums or incurred heavy obligations for its permanent improvement. Id. at 129. Despite Mr. Keane paying a considerable amount of money for the license, $5,000, there is no record that he expended a substantial sum of money to improve the parking space. If this narrow exception is not applicable, under Florida law, a license is revocable at the will of the licensor/grantor. In conclusion, it seems that under Florida case law if an association is looking to grant a license in parking spaces, it should do so for a stated term and should specifically address revocability conditions.