Lease And License Agreement for Malaysia

Lease And License Agreement Template for Malaysia

A comprehensive legal document governed by Malaysian law that combines both lease and license provisions, enabling the formal transfer of property occupation rights while maintaining specific usage restrictions. The agreement is structured in accordance with the National Land Code 1965 and Contracts Act 1950, incorporating essential elements such as rental terms, duration, maintenance responsibilities, and specific conditions for property use. It provides a robust framework for both residential and commercial property arrangements, ensuring compliance with Malaysian property laws while protecting the interests of both lessors and lessees.

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What is a Lease And License Agreement?

The Lease and License Agreement serves as a crucial legal instrument in Malaysian property transactions, providing a comprehensive framework for property occupation and usage rights. This document is essential when a property owner wishes to grant both occupancy rights and specific usage permissions to another party, whether for residential or commercial purposes. It incorporates requirements from key Malaysian legislation including the National Land Code 1965 and Contracts Act 1950, making it suitable for various property arrangements from simple residential leases to complex commercial property agreements. The document typically includes detailed provisions for rent payment, maintenance obligations, permitted use, and termination conditions, while also addressing specific Malaysian legal requirements such as stamp duty compliance and registration procedures where necessary.

What sections should be included in a Lease And License Agreement?

1. Parties: Identification and details of the lessor/licensor and lessee/licensee including full names, identification numbers, and addresses

2. Background: Brief context of the agreement, property ownership status, and purpose of the lease

3. Definitions: Definitions of key terms used throughout the agreement

4. Demise and License: The formal grant of lease and license, specifying the property being leased

5. Term and Renewal: Duration of the lease, commencement date, and renewal provisions

6. Rent and License Fee: Amount, payment schedule, and method of payment for rent and license fee

7. Security Deposit: Amount, terms of payment and refund conditions for the security deposit

8. Utilities and Outgoings: Responsibility for utility payments and other ongoing expenses

9. Use of Premises: Permitted use of the property and any restrictions

10. Maintenance and Repairs: Responsibilities of parties for maintaining and repairing the property

11. Insurance: Insurance requirements for both parties

12. Termination: Conditions and procedures for early termination

13. Assignment and Subletting: Restrictions on transfer of lease rights or subletting

14. Governing Law: Specification of Malaysian law as governing law

15. Dispute Resolution: Procedures for resolving disputes between parties

What sections are optional to include in a Lease And License Agreement?

1. Renovation and Alterations: Terms for making changes to the property, used when renovations are anticipated

2. Quiet Enjoyment: Landlord's covenant for peaceful possession, typically included in residential leases

3. Common Areas: Rules for use of shared facilities, included for properties in multi-unit buildings

4. Green Lease Provisions: Environmental and sustainability requirements, used for properties with green building certification

5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant post-COVID

6. Option to Purchase: Terms for potential property purchase, included when agreed between parties

7. Special Conditions: Any unique terms specific to the property or parties' requirements

What schedules should be included in a Lease And License Agreement?

1. Schedule 1 - Property Details: Detailed description of the property including address, lot number, and floor plan

2. Schedule 2 - Inventory List: List of furniture, fixtures, and fittings included in the lease

3. Schedule 3 - House Rules: Specific rules and regulations for the use of the property

4. Schedule 4 - Maintenance Schedule: Detailed breakdown of maintenance responsibilities

5. Schedule 5 - Utility Deposits: List of utility deposits and account numbers

6. Appendix A - Registration Documents: Copies of relevant land title and registration documents

7. Appendix B - Condition Report: Detailed report on the condition of the property at commencement of lease

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

Malaysia

Publisher

Genie AI

Document Type

Rental Agreement

Cost

Free to use
Clauses
Relevant Industries

Real Estate

Commercial Property

Residential Property

Retail

Office Space

Industrial

Hospitality

Healthcare

Education

Manufacturing

Warehousing

Technology Parks

Shopping Centers

Food & Beverage

Banking & Financial Services

Relevant Teams

Legal

Operations

Facilities Management

Real Estate

Corporate Services

Administration

Finance

Compliance

Risk Management

Procurement

Property Management

Relevant Roles

Property Manager

Facilities Manager

Legal Counsel

Real Estate Manager

Operations Director

Chief Financial Officer

Asset Manager

Compliance Officer

Business Development Manager

Corporate Services Manager

Administration Manager

Procurement Manager

Risk Manager

Company Secretary

Commercial Director

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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