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Premises Use Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions for the temporary use of specific premises. This document outlines the rights, responsibilities, and obligations of both the premises owner/controller and the user, including usage parameters, fees, maintenance responsibilities, and compliance requirements. It incorporates relevant Malaysian property and contractual laws, including provisions from the National Land Code 1965 and Local Government Act 1976, while addressing specific requirements for premises use, safety regulations, and local authority compliance.

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What is a Premises Use Agreement?

The Premises Use Agreement serves as a legally binding document under Malaysian law that facilitates temporary access to and use of specific premises while protecting the interests of both the owner and user. This agreement is particularly useful for situations requiring short-term or specific-purpose usage of premises, distinct from traditional leases or tenancy agreements. It incorporates essential elements required by Malaysian legislation, including the Contracts Act 1950 and relevant property laws, while providing flexibility to accommodate various usage scenarios. The document typically includes detailed provisions for permitted activities, operating hours, maintenance responsibilities, safety compliance, and liability allocation, making it suitable for both commercial and non-commercial applications. A Premises Use Agreement is commonly used for events, temporary business operations, shared spaces, or other scenarios where full tenancy rights are not required or desired.

What sections should be included in a Premises Use Agreement?

1. Parties: Identification of the premises owner/controller and the user, including full legal names and addresses

2. Background: Context of the agreement, brief description of the premises, and purpose of the arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Grant of Use: Specific rights granted regarding premises use, including any restrictions and permitted activities

5. Duration: Term of the agreement, including start date and end date if applicable

6. Fees and Payment: Usage fees, payment terms, security deposits, and other financial obligations

7. User's Obligations: Responsibilities of the user including maintenance, compliance with regulations, and conduct

8. Owner's Obligations: Responsibilities of the owner including maintenance of common areas and basic facilities

9. Insurance and Liability: Insurance requirements and allocation of risks between parties

10. Access and Security: Terms regarding access to the premises, security arrangements, and keys

11. Termination: Circumstances and procedures for termination of the agreement

12. General Provisions: Standard clauses including notices, governing law, and dispute resolution

What sections are optional to include in a Premises Use Agreement?

1. Utilities and Services: Required when utilities are separately charged or managed

2. Fit-out Works: Needed when the user is permitted to make modifications to the premises

3. Operating Hours: Required for commercial premises with specific operating time restrictions

4. Signage Rights: Necessary for commercial users requiring external or internal signage

5. Intellectual Property: Required when premises use involves branding or IP considerations

6. Environmental Obligations: Needed for premises use involving potential environmental impact

7. Force Majeure: Optional clause for handling unforeseen circumstances affecting premises use

What schedules should be included in a Premises Use Agreement?

1. Schedule 1 - Premises Details: Detailed description of the premises including floor plans and measurements

2. Schedule 2 - Permitted Use: Detailed specification of allowed activities and usage restrictions

3. Schedule 3 - Fee Schedule: Breakdown of all fees, charges, and payment terms

4. Schedule 4 - House Rules: Specific rules and regulations for premises use

5. Schedule 5 - Maintenance Schedule: Distribution of maintenance responsibilities between parties

6. Schedule 6 - Handover Condition: Documentation of premises condition at commencement

7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and coverage specifications

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Use Agreement

Cost

Free to use

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