The Art Worker 024
Why a license agreement is the right solution for STUDIO LOAN
By Cara Miller, Attorney
A license agreement offers a practical solution for artists seeking short-term, specific use of a studio. Unlike a sublease, which transfers tenancy from the original tenant to a subtenant for a specified period, a license agreement enables artists to grant certain rights to fellow artists without the complexities and liabilities associated with traditional leasing arrangements. For example, a sublease often requires the original tenant to remain liable for lease obligations, such as rent and property damage, and may necessitate landlord consent. Meanwhile, a license agreement provides clear and limited access rights to the licensee, allowing the lessor to retain greater control over the space and its use while still providing temporary access. Long story short: a license agreement transforms what would otherwise be considered a “trespass” into a mutually beneficial opportunity for collaboration.
As a contracts attorney, I consistently advocate for the use of written agreements, such as the STUDIO LOAN agreement. Written agreements clearly delineate the rights, obligations, and expectations of each party involved. Having a well-defined contract in place fosters a smooth and transparent relationship, both on a business and personal level. Written contracts offer legal protection by serving as concrete evidence of the agreed-upon terms, ensuring compliance with legal requirements and regulatory obligations, and mitigating risks associated with studio lending, such as liability and property damage.
Although a written agreement may seem excessive or unnecessary for a limited situation such as a studio loan, think twice about agreeing via a “handshake deal.” Some states, like California, recognize oral agreements as legally binding in certain situations. Relying solely on oral discussions leaves room for ambiguity and misunderstandings. Without a written contract, crucial details such as the scope of use, duration, rental fees, and liability provisions may be subject to interpretation, leading to potential conflicts and complications down the line.
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STUDIO LOAN meets the need for affordable, short-term studio space in Los Angeles and sets the groundwork for one of CAL’s long term goals: a cooperatively-owned community center that houses support and services for art workers, including short term studio rentals. This evolution of the collaboration between CAL and The Artist’s Contract is an artist-led, community-based initiative to help pair artists with studios to lend with artists who need to borrow space for a short term.
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