Occupancy License Agreement for India

Occupancy License Agreement Template for India

An Occupancy License Agreement under Indian law is a legal document that grants permission to use and occupy a specific property or space for a defined period without creating any tenancy or leasehold rights. This agreement is governed by Indian contract law and property law, particularly the Indian Easements Act, 1882, and must comply with relevant state-specific regulations. It's distinct from a lease agreement as it confers only a personal right to use the space, typically with more flexibility in termination and usually for shorter durations. The agreement details the terms of occupation, including license fees, permitted use, maintenance responsibilities, and termination conditions.

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What is a Occupancy License Agreement?

The Occupancy License Agreement is commonly used in India when property owners or managers want to grant temporary, flexible rights to use a space without creating a landlord-tenant relationship. It's particularly relevant in commercial contexts such as co-working spaces, temporary office setups, educational facilities, and short-term commercial arrangements. This document type is governed by Indian law, specifically the Indian Easements Act, 1882, and various state-specific regulations. The agreement typically includes detailed terms about the permitted use of the space, license fees, duration, termination rights, and obligations of both parties. It's crucial to maintain clear distinction from a lease agreement to avoid legal recharacterization, making it essential to properly structure the rights and obligations within the agreement.

What sections should be included in a Occupancy License Agreement?

1. Parties: Details of the Licensor and Licensee, including full names, addresses, and registration details if companies

2. Background: Context of the agreement and confirmation that this is a pure license arrangement, not creating any tenancy or other rights

3. Definitions: Key terms used in the agreement including 'Licensed Premises', 'License Fee', 'License Period', 'Permitted Use'

4. Grant of License: Specific terms of the license grant, emphasizing its non-exclusive and temporary nature

5. License Period: Duration of the license, including commencement date and end date

6. License Fee and Deposits: Amount, payment schedule, security deposit details, and utility charges

7. Permitted Use: Specific purposes for which the premises may be used

8. Licensee's Obligations: Responsibilities including maintenance, compliance with regulations, and conduct rules

9. Licensor's Obligations: Responsibilities regarding access, basic facilities, and maintenance

10. Restrictions on Use: Specific prohibitions and limitations on the use of the premises

11. Termination: Circumstances under which either party can terminate the license

12. Consequences of Termination: Actions required upon termination, including vacation and restoration

13. Notices: Process for formal communications between parties

14. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction

What sections are optional to include in a Occupancy License Agreement?

1. Insurance: Requirements for insurance coverage, used when valuable property or high-risk activities are involved

2. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term licenses

3. Assignment and Sublicensing: Usually to prohibit these actions, included when dealing with corporate licensees

4. Alterations and Improvements: Include when licensee may need to make changes to the premises

5. Intellectual Property: Required when the licensed space involves branding or IP rights

6. Confidentiality: Important for commercial premises or when sensitive operations are involved

7. Dispute Resolution: Alternative dispute resolution mechanisms, useful for high-value licenses

What schedules should be included in a Occupancy License Agreement?

1. Schedule 1 - Description of Licensed Premises: Detailed description of the premises including floor plan and measurements

2. Schedule 2 - License Fee Structure: Detailed breakdown of fees, deposits, and payment terms

3. Schedule 3 - Inventory List: List of furniture, fixtures, and equipment included in the license

4. Schedule 4 - House Rules: Detailed rules and regulations for using the premises

5. Schedule 5 - Handover Protocol: Procedure for initial handover and final return of premises

6. Appendix A - Required Permits: Copies of necessary permits and certificates

7. Appendix B - Service Level Standards: Standards for maintenance and services if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Genie AI

Document Type

Licensing Agreement

Cost

Free to use
Relevant Industries

Real Estate

Commercial Property

Co-working Spaces

Education

Information Technology

Retail

Hospitality

Healthcare

Manufacturing

Professional Services

Banking and Financial Services

Telecommunications

Relevant Teams

Legal

Operations

Facilities Management

Administration

Real Estate

Procurement

Compliance

Finance

Corporate Services

Risk Management

Relevant Roles

Facility Manager

Property Manager

Real Estate Manager

Legal Counsel

Corporate Lawyer

Operations Manager

Office Administrator

Business Development Manager

Procurement Manager

Company Secretary

Compliance Officer

Real Estate Director

Administrative Head

Chief Operating Officer

Space Planning Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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