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Simple Occupancy Agreement for Malaysia

Simple Occupancy Agreement Template for Malaysia

A Simple Occupancy Agreement is a legal document used in Malaysia to grant temporary occupation rights to a property without creating a formal landlord-tenant relationship. This document establishes the terms and conditions for occupying a space while maintaining the owner's primary control and access rights. The agreement is governed by Malaysian law, particularly the Contracts Act 1950 and relevant property legislation, and provides a more flexible alternative to traditional lease arrangements while clearly defining the rights, obligations, and limitations of both the property owner and occupant.

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What is a Simple Occupancy Agreement?

The Simple Occupancy Agreement serves as a flexible legal instrument under Malaysian law for situations requiring temporary or conditional property occupation without the full commitments of a lease agreement. This document is particularly useful for short-term arrangements, shared spaces, or situations where the property owner needs to maintain significant control over the property. The agreement typically includes essential terms such as duration, fees, permitted use, and occupant obligations while clearly establishing that the arrangement creates a license to occupy rather than a leasehold interest. It's commonly used in commercial settings, shared workspaces, temporary residential arrangements, or other situations where traditional lease agreements might be too rigid or formal. The document must comply with Malaysian contract law and property regulations, including proper stamping requirements under the Stamp Act 1949.

What sections should be included in a Simple Occupancy Agreement?

1. Parties: Identifies and provides full details of the Owner/Licensor and Occupant/Licensee, including their addresses and registration numbers if applicable

2. Background: Brief context explaining the purpose of the agreement and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Grant of License: Specifies the nature of occupancy rights being granted and confirms this is a license, not a lease

5. Duration: Specifies the term of occupancy, including start and end dates

6. License Fee: Details the occupancy fee amount, payment schedule, and payment methods

7. Utilities and Outgoings: Specifies responsibility for utility payments and other ongoing costs

8. Use of Property: Defines permitted uses of the property and any restrictions

9. Occupant's Obligations: Lists all responsibilities and obligations of the occupant

10. Owner's Obligations: Lists all responsibilities and obligations of the owner

11. Termination: Specifies circumstances and procedures for ending the agreement

12. Notices: Details how formal communications between parties should be made

13. Governing Law: Confirms the agreement is governed by Malaysian law

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

1. Security Deposit: Include when a security deposit is required, specifying amount and terms of return

2. Maintenance and Repairs: Include when specific maintenance responsibilities need to be allocated between parties

3. Insurance: Include when specific insurance requirements are imposed on either party

4. Quiet Enjoyment: Include for longer-term occupancy arrangements to guarantee peaceful use

5. Assignment and Subletting: Include when there's a need to explicitly prohibit or regulate transfer of occupancy rights

6. Force Majeure: Include when parties want to address unforeseen circumstances affecting the agreement

7. Alterations: Include when there's a need to specify whether and how the occupant can modify the space

8. Access Rights: Include when the owner needs specific rights to enter and inspect the property

What schedules should be included in a Simple Occupancy Agreement?

1. Schedule 1: Property Details: Detailed description of the property including address, boundaries, and included facilities/furniture

2. Schedule 2: Inventory List: List of furniture, fixtures, and fittings provided with the property

3. Schedule 3: House Rules: Specific rules and regulations for using the property, if applicable

4. Schedule 4: Utility Reading Records: Initial utility meter readings at the start of occupancy

5. Appendix A: Floor Plan: Layout and floor plan of the property

6. Appendix B: Photographs: Documentary evidence of property condition at start of occupancy

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

Malaysia

Publisher

Ƶ

Document Type

Use Agreement

Cost

Free to use
Relevant legal definitions


















Clauses


























Relevant Industries

Real Estate

Property Management

Commercial Property

Residential Property

Retail

Hospitality

Shared Workspace

Corporate Services

Education

Healthcare

Relevant Teams

Legal

Operations

Facilities Management

Real Estate

Property Management

Administrative Services

Compliance

Corporate Services

Asset Management

Relevant Roles

Property Manager

Facilities Manager

Real Estate Agent

Legal Counsel

Compliance Officer

Operations Manager

Asset Manager

Building Manager

Administrative Officer

Corporate Services Manager

Real Estate Director

Property Administrator

Leasing Manager

Space Planning 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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