The Licence Agreement Tenancy is a vital legal instrument in German property law, designed to facilitate flexible property usage arrangements while maintaining legal certainty. This document is particularly useful when traditional lease agreements may be too rigid or inappropriate for the intended use, such as in temporary occupancy situations, shared spaces, or specific-use scenarios. The agreement must comply with German Civil Code (BGB) requirements while balancing the practical needs of modern property usage. It typically includes detailed provisions about property access, usage rights, fee structures, maintenance obligations, and termination conditions. The document is essential for property owners seeking to grant occupancy rights while retaining greater control than in standard tenancy agreements, making it particularly relevant in commercial contexts or specialized residential situations.
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1. Parties: Identification and details of the licensor and licensee, including full legal names, addresses, and registration details if companies
2. Background: Context of the agreement and brief description of the property and intended use
3. Definitions: Definitions of key terms used throughout the agreement, including 'Property', 'License Period', 'License Fee', etc.
4. Grant of License: Specific terms of the license grant, including the exact nature of permitted use and any restrictions
5. Property Description: Detailed description of the licensed property, including address, size, and included fixtures/fittings
6. Duration and Termination: Term of the license, renewal provisions, and termination rights in accordance with German law
7. License Fee and Other Charges: Amount, payment terms, review mechanisms, and additional charges such as utilities and operating costs
8. Use of Property: Permitted uses, restrictions, and compliance with local regulations
9. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements
10. Insurance and Liability: Insurance requirements and allocation of risks between parties
11. Access and Inspection: Licensor's rights of access and inspection procedures
12. Notices: Format and method of delivering formal notices between parties
13. Governing Law: Confirmation of German law application and jurisdiction
14. Execution: Signature blocks and execution requirements
1. Sublicensing and Assignment: Include when sublicensing or assignment rights are to be granted or specifically prohibited
2. Alterations and Improvements: Include when the licensee is permitted to make changes to the property
3. Security Deposit: Include when a security deposit is required, specifying amount and terms
4. Utilities and Services: Include when specific arrangements for utilities and services need to be detailed
5. House Rules: Include for properties within larger complexes or buildings with specific rules
6. Data Protection: Include detailed GDPR compliance terms when personal data processing is extensive
7. Force Majeure: Include specific force majeure provisions beyond standard German law
8. Environmental Obligations: Include when property use involves environmental considerations
1. Schedule 1 - Property Plan: Detailed floor plans and property boundaries
2. Schedule 2 - Inventory: List of fixtures, fittings, and furniture included in the license
3. Schedule 3 - Service Charges: Breakdown of service charges and calculation methods
4. Schedule 4 - House Rules: Detailed building or complex rules and regulations
5. Schedule 5 - Condition Report: Initial condition report with photographs
6. Schedule 6 - Utility Agreements: Specific arrangements for utility services and meters
7. Appendix A - Energy Performance Certificate: Mandatory energy efficiency documentation
8. Appendix B - Safety Certificates: Relevant safety and compliance certificates
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