Occupancy License Agreement Template for Canada

An Occupancy License Agreement provides a legal framework for granting temporary or non-exclusive use of property in Canada without creating a landlord-tenant relationship. Unlike traditional leases that grant an interest in land, this agreement establishes a personal right to occupy space under specified conditions while preserving the property owner's superior rights. You'll need this document when seeking flexible space arrangements that don't require the formalities and long-term commitments of conventional leasing structures.

When do you need this document?

You'll require an Occupancy License Agreement for shared workspace arrangements where multiple users need access to the same facilities, temporary retail pop-ups in malls or commercial spaces, educational institutions providing short-term accommodation to visiting researchers or students, or corporate entities requiring flexible office space for project teams. This agreement is also essential for co-working spaces, maker spaces, event venues offering temporary access, and government agencies providing conditional property use to non-profit organizations. The document proves particularly valuable when you need to maintain control over property access while allowing legitimate occupancy for specific purposes and durations.

Key legal considerations

Your agreement must clearly distinguish between a license and a lease to avoid unintended landlord-tenant obligations under provincial legislation. The document should specify that no exclusive possession is granted and that the licensor retains the right to access and control the property. Include detailed provisions for permitted uses, occupancy limits, and restrictions to ensure compliance with building codes and zoning requirements. Address insurance responsibilities clearly, requiring the licensee to maintain appropriate coverage while protecting the licensor from liability. Establish maintenance and repair obligations, utility arrangements, and fee structures with clear payment terms and consequences for default. Include termination clauses that allow for immediate revocation if necessary, while respecting any notice requirements under provincial law.

Legal requirements in Canada

Your Occupancy License Agreement must comply with the Real Property Act and relevant provincial property legislation governing property rights and occupation. Ensure the occupied space meets standards under the applicable Building Code Act and Fire Protection and Prevention Act, particularly regarding safety, accessibility, and maximum occupancy limits. The agreement must not violate the Canadian Human Rights Act or provincial human rights codes, ensuring non-discriminatory access and reasonable accommodation provisions. Include clauses addressing provincial consumer protection legislation if applicable to the licensing arrangement. Verify compliance with municipal zoning bylaws and any specific licensing requirements for the intended use of the space. Consider provincial statutory requirements for notice periods, dispute resolution procedures, and any mandatory disclosure obligations that may apply to the licensing relationship.