The Licence To Occupy Agreement is a crucial document in Hong Kong's property market, particularly useful for situations requiring flexible, temporary, or non-exclusive use of space. It differs from a traditional lease by creating a personal right to occupy rather than an interest in land. This agreement is commonly used for serviced offices, coworking spaces, pop-up stores, and temporary commercial arrangements. The document includes essential provisions regarding occupation terms, fees, permitted use, and termination rights, while ensuring compliance with Hong Kong property laws and regulations. It's particularly valuable when property owners want to maintain greater control over the space while providing occupants with clear rights and obligations. The agreement must be carefully drafted to avoid being characterized as a lease under Hong Kong law.
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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 a personal right to occupy, not a lease
3. Definitions: Key terms used throughout the agreement including 'Premises', 'License Period', 'License Fee', and 'Permitted Use'
4. Grant of License: Express terms of the license grant and clear statement that it creates no tenancy rights
5. License Period: Duration of the license, including start and end dates, and any renewal provisions
6. License Fee: Amount payable, payment schedule, and method of payment
7. Deposit: Amount, payment terms, and conditions for return of the security deposit
8. Licensee's Obligations: Core responsibilities including maintenance, permitted use, compliance with regulations
9. Licensor's Rights: Including right of entry, relocation rights, and termination rights
10. Insurance: Required insurance coverage and responsibilities
11. Termination: Grounds for termination, notice requirements, and consequences
12. Return of Premises: Conditions for return and any make-good obligations
13. Notices: How formal notices must be given between parties
14. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and severability
1. Utilities and Services: Include when utilities are separately charged or specific services are provided
2. Alterations: Include when licensee is permitted to make specific modifications to the space
3. Shared Facilities: Include when the license includes use of common areas or shared facilities
4. Assignment and Sublicensing: Include when specific restrictions on transfer need to be detailed
5. Specific Use Requirements: Include when the space has specific use restrictions or requirements
6. Break Clause: Include when early termination options are available to either party
7. Force Majeure: Include when specific provisions for unforeseen circumstances are needed
8. Internet and Telecommunications: Include when specific arrangements for communications services exist
1. Schedule 1 - Premises Plan: Detailed plan or drawing of the licensed area
2. Schedule 2 - Inventory: List of furniture, fixtures, and equipment included in the license
3. Schedule 3 - House Rules: Building regulations and operational guidelines
4. Schedule 4 - Service Charges: Breakdown of any additional charges or fees
5. Schedule 5 - Permitted Use Details: Specific details about how the space may be used
6. Schedule 6 - Maintenance Schedule: Details of maintenance responsibilities and schedules
7. Appendix A - Photos: Photographs documenting the condition of the premises
8. Appendix B - Access Procedures: Security and access arrangements including key or card procedures
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