The License to Occupy is a crucial document in Malaysian property law that provides a flexible alternative to traditional leases. It is particularly useful for situations requiring temporary occupation rights without the complexities of a full tenancy agreement. This document is commonly used in commercial, retail, and professional environments where short-term or flexible occupation arrangements are needed. The agreement complies with Malaysian legislation, including the National Land Code 1965 and Contracts Act 1950, and typically includes essential provisions for property access, usage restrictions, duration, fees, and termination rights. It's especially valuable for pop-up stores, temporary office spaces, or short-term commercial uses where the occupier needs immediate access but the property owner wishes to retain significant control over the property.
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1. Parties: Identifies and defines the Licensor and Licensee with full legal names and addresses
2. Background: Sets out the context of the agreement and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement
4. Grant of License: Specifies the grant of license to occupy and its nature as a personal right, not a tenancy
5. Duration: Specifies the period of occupation, including start and end dates
6. License Fee: Details the fee payable, payment terms, and method of payment
7. Permitted Use: Clearly defines how the Licensee may use the property
8. Licensee's Obligations: Lists all obligations including maintenance, conduct, and compliance with regulations
9. Licensor's Obligations: Outlines the Licensor's responsibilities regarding the property
10. Insurance: Specifies required insurance coverage and responsibilities
11. Termination: Details circumstances and procedures for ending the license
12. Notices: Specifies how formal communications between parties should be made
13. Governing Law: Confirms Malaysian law governs the agreement
1. Utilities and Services: Include when the license includes responsibility for utilities
2. Shared Facilities: Include when the property has common areas or shared facilities
3. Security Deposit: Include when a security deposit is required
4. Alterations: Include when specific provisions about property modifications are needed
5. Assignment and Sublicensing: Include when specific restrictions on transfer need to be emphasized
6. Force Majeure: Include when specific provisions for unforeseen circumstances are required
7. Quiet Enjoyment: Include when specific assurances about peaceful occupation are needed
1. Schedule 1 - Property Description: Detailed description of the licensed property including floor plans and boundaries
2. Schedule 2 - Inventory: List of furniture, fixtures, and equipment included in the license
3. Schedule 3 - House Rules: Specific rules and regulations for the use of the property
4. Schedule 4 - Service Charges: Breakdown of any additional charges or service fees
5. Appendix A - Photos: Photographic evidence of the property's condition at commencement
6. Appendix B - Licenses and Permits: Copies of relevant permits or licenses required for occupation
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