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Post Occupancy Agreement for Hong Kong

Post Occupancy Agreement Template for Hong Kong

A Post Occupancy Agreement is a legal document used in Hong Kong property transactions that establishes the terms and conditions under which a property seller may continue to occupy the property after the completion of sale. Operating under Hong Kong's common law system, this agreement creates a license arrangement rather than a tenancy, defining the temporary occupation period, fees, responsibilities, and obligations of both parties. The document incorporates specific provisions compliant with Hong Kong property laws and regulations, including requirements for property management, insurance, and eventual vacant possession.

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What is a Post Occupancy Agreement?

The Post Occupancy Agreement is essential in Hong Kong property transactions where sellers require continued occupation of the property after completion of sale. This arrangement commonly occurs when sellers need additional time to arrange alternative accommodation or complete their own property purchase. The agreement, governed by Hong Kong law, creates a license rather than a tenancy, thereby avoiding the statutory protections associated with residential tenancies. It typically includes provisions for occupation fees, duration, maintenance responsibilities, insurance requirements, and property management obligations. The document ensures clear documentation of the temporary arrangement while protecting both parties' interests under Hong Kong's property law framework.

What sections should be included in a Post Occupancy Agreement?

1. Parties: Identification of the new owner (as Licensor) and the former owner (as Licensee)

2. Background: Context of the sale transaction and reason for post-completion occupancy

3. Definitions: Key terms used throughout the agreement including Property, Occupation Period, Occupation Fee, etc.

4. Grant of License: Terms of the temporary occupation license, explicitly stating this is not a tenancy

5. Occupation Period: Duration of the post-completion occupation and any extension provisions

6. Occupation Fee: Amount payable for the occupation, payment terms, and calculation method

7. Condition and Use of Property: Obligations regarding property maintenance and permitted use during occupation

8. Utilities and Outgoings: Responsibility for utilities, management fees, and other property-related expenses

9. Insurance: Requirements for insurance coverage during the occupation period

10. Termination: Circumstances allowing early termination and the process

11. Vacant Possession: Requirements for returning the property at the end of the occupation period

12. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction

What sections are optional to include in a Post Occupancy Agreement?

1. Security Deposit: Required when parties agree on a security deposit for the occupation period

2. Property Management: Needed for properties in managed buildings with specific rules and regulations

3. Alterations: Include when the occupier wishes to make or continue making alterations to the property

4. Sub-occupation: Required if there's any possibility of third-party occupation

5. Early Completion Bonus: Include if parties agree on incentives for early vacation of the property

6. Penalty Provisions: Add when specific penalties for breach or overstay are agreed upon

7. Existing Tenancies: Required if there are existing tenants in the property during the occupation period

What schedules should be included in a Post Occupancy Agreement?

1. Schedule 1 - Property Details: Detailed description of the property including address and specifications

2. Schedule 2 - Inventory: List of furniture, fixtures, and items included in the property during occupation

3. Schedule 3 - Occupation Fee Calculation: Detailed breakdown of occupation fee calculation and payment schedule

4. Schedule 4 - House Rules: Applicable building management rules and regulations

5. Appendix A - Property Handover Form: Template for documenting property condition at the start and end of occupation

6. Appendix B - Utility Reading Form: Template for recording utility readings at the start and end of occupation

7. Appendix C - Insurance Requirements: Detailed specifications of required insurance coverage

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions






























Clauses





























Relevant Industries

Real Estate

Property Development

Legal Services

Property Management

Real Estate Investment

Banking and Finance

Insurance

Residential Property

Commercial Property

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Risk Management

Operations

Conveyancing

Contract Administration

Property Services

Transaction Management

Relevant Roles

Real Estate Lawyer

Property Manager

Conveyancing Manager

Legal Counsel

Real Estate Agent

Property Transaction Officer

Compliance Officer

Risk Manager

Real Estate Partner

Property Operations Manager

Contract Administrator

Legal Director

Transaction Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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