The Bare Licence To Occupy is a versatile legal instrument used in Hong Kong when parties need to establish a flexible arrangement for the occupation of space without creating a landlord-tenant relationship. This document type is particularly relevant in today's dynamic business environment, where traditional long-term leases may not suit all commercial needs. It's commonly used for serviced offices, co-working spaces, temporary business locations, or situations requiring quick deployment of workspace solutions. The document addresses key aspects such as occupation rights, fee structures, duration, and termination rights, while ensuring compliance with Hong Kong's legal framework. Unlike a lease, it provides greater flexibility for the licensor to relocate the licensee or terminate the arrangement, making it ideal for short-term or flexible space requirements. The agreement must be carefully drafted to avoid inadvertently creating a lease and should clearly establish its nature as a licence.
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1. Parties: Identification of the Licensor and Licensee with full legal names and addresses
2. Background: Context of the agreement and confirmation that this is intended to be a bare licence, not a lease
3. Definitions: Key terms used throughout the document including 'Premises', 'Licence Period', 'Licence Fee', and 'Permitted Use'
4. Grant of Licence: Express terms of the licence grant, emphasizing its non-exclusive nature and that it creates no estate or interest in the property
5. Licence Period: Duration of the licence, including start and end dates
6. Licence Fee: Amount payable, payment terms, and payment method
7. Licensee's Obligations: Core obligations including compliance with regulations, maintenance, and conduct requirements
8. Licensor's Rights: Rights to enter and inspect, relocate licensee, and maintain the premises
9. Termination: Circumstances under which the licence can be terminated by either party
10. Notices: How formal communications between parties should be made
11. Governing Law: Confirmation that Hong Kong law governs the agreement
1. Utilities and Services: Include when licensee has responsibility for any utilities or services
2. Insurance: Include when specific insurance requirements are needed beyond standard building insurance
3. Security Deposit: Include when a security deposit is required
4. Alterations: Include when licensee may need to make minor alterations to the space
5. Sharing and Assignment: Include when there's need to explicitly prohibit or regulate sharing of the space
6. Health and Safety: Include for specific health and safety requirements, particularly relevant for commercial premises
7. COVID-19 Provisions: Include specific provisions related to pandemic measures if still relevant
8. Break Clause: Include when early termination options are required
1. Schedule 1 - Description of Premises: Detailed description of the licensed area including floor plans and photographs
2. Schedule 2 - Permitted Use: Detailed description of how the premises may be used
3. Schedule 3 - House Rules: Building regulations, access times, and general conduct requirements
4. Schedule 4 - Fee Schedule: Breakdown of licence fee and any additional charges
5. Schedule 5 - Inventory: List of any furniture, equipment or other items included in the licence
6. Schedule 6 - Service Level Agreement: Details of any services provided by the licensor
7. Appendix A - Floor Plan: Detailed floor plan marking out the licensed area
8. Appendix B - Photos: Photographs documenting the condition of the premises at the start of the licence
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