The License Agreement Before Settlement is a crucial document in New Zealand property transactions where circumstances necessitate early occupation of a property before the settlement date. This arrangement might be required when purchasers need to move in before settlement due to lease expiry, settlement delays, or other practical considerations. The agreement provides a legal framework under New Zealand law for managing this interim period, protecting both parties' interests while maintaining the distinction between a license and a lease. It typically includes detailed provisions for payment of license fees, utilities, maintenance obligations, insurance requirements, and access rights. The document ensures compliance with New Zealand property law while facilitating practical solutions for property transactions where traditional settlement timing doesn't align with occupancy needs.
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1. Parties: Identification of the Licensor (current property owner) and Licensee (purchaser/occupant)
2. Background: Context of the agreement, including reference to the sale and purchase agreement and reason for the license
3. Definitions: Key terms used throughout the agreement including Property, License Period, License Fee, Settlement Date
4. Grant of License: Specific terms of the license grant, including purpose and limitations
5. License Period: Duration of the license, start date, end date, and any extension provisions
6. License Fee: Amount payable, payment frequency, method of payment, and treatment of outgoings
7. Property Care and Maintenance: Licensee's obligations regarding property maintenance and condition
8. Access and Inspection: Licensor's rights to access the property during the license period
9. Insurance: Requirements for property and contents insurance during the license period
10. Risk and Liability: Allocation of risk and responsibility between parties
11. Default and Termination: Consequences of breach and termination provisions
12. General Terms: Standard contract provisions including notices, amendments, governing law
1. Utilities and Services: Include when specific arrangements for utilities transfer or payment are needed
2. Alterations: Include when licensee may need to make changes to the property before settlement
3. Sublicensing: Include when there's potential for third-party occupation
4. Chattels: Include when specific provisions about use of chattels before settlement are needed
5. Early Settlement: Include when parties want to include provisions for early settlement opportunity
6. Security Deposit: Include when additional security beyond the license fee is required
7. Pets: Include when the licensee has pets or when specific pet restrictions are needed
8. Special Conditions: Include when there are property-specific requirements or restrictions
1. Schedule 1: Property Description: Detailed description of the property including address and legal description
2. Schedule 2: License Fee Calculation: Breakdown of license fee, outgoings, and payment schedule
3. Schedule 3: Property Condition Report: Detailed report of property condition at commencement of license
4. Schedule 4: Chattels List: Inventory of chattels included in the license arrangement
5. Schedule 5: Special Conditions: Any additional terms specific to this license arrangement
6. Appendix A: Sale and Purchase Agreement: Copy of the related sale and purchase agreement
7. Appendix B: Insurance Certificates: Copies of required insurance policies
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