Which statement about licenses in real property is accurate?

• A. A license permanently transfers use rights and creates a leasehold interest.
• B. A license requires a written instrument signed by both parties to be valid.
• C. A license automatically transfers to heirs upon death.
• D. A license is usually an oral agreement granting short-term use and is revocable.

Answer: (D)

Licenses give someone permission to use property without granting any ownership or exclusive possession. Because it's just a personal privilege, it does not create a leasehold or other real estate interest. That’s why licenses are typically informal and short-term and can be revoked by the property owner. They also don’t automatically pass to heirs—the license ends at the licensor’s death or when revoked, unless another instrument creates a longer-lasting right.

So the statement reflects the nature of a license: it’s usually an oral agreement granting short-term use and is revocable. In contrast, a lease creates an actual possessory interest and a more lasting arrangement, and it doesn’t disappear just because someone dies; licenses lack that enduring status.