The big misunderstanding that supports the application of fictitious agreements is that a lessor can choose which of the 30 types of lease agreements should be granted. Leases or licenses can be written or orally. Oral agreements are as binding as written agreements. However, it is advisable to have a written agreement so that the location of each party is clearer. Nevertheless, ingenious owners and owners try to characterize these agreements as “licences” or “occupancy permits.” The benefit of licensing means that the legal protection normally associated with a lease would not apply. www.egi.co.uk/legal/business-rates-a-document-purporting-to-be-a-lease-was-a-sham/ Tower Hamlets Council successfully sued an owner for consumer protection violations for unfair business practices in 2008. The London-based owner was fined $22,000 for issuing “licensing agreements” to inmates who should have been granted leases. This follows a similar trial in Islington in 2017, when an officer was fined more than $20,000 for violating consumer protection rules. He went to his local authority`s homeless unit and asked what his rights were, but the person who interviewed him was not aware of the fictitious agreements, and when he read the word “lodger,” he told him that the officer was within his rights and that he did have to leave.  www.londonpropertylicensing.co.uk/islington-letting-agent-prosecuted-issuing-tenants-bogus-licences-instead-tenancy-agreements The Court found that if these three characteristics are present, it is likely that a lease agreement has been created; Regardless of the intent of the parties. The court also found that any attempt to conceal the award of a lease would be a “feint” or a “sham agreement”. If all the local authorities were to take over Islington in fictitious agreements, a terrible amount of agents would make a lot of money. 3.
Never, anyone, go through the title on a rental agreement to identify rent security.