Licence To Occupy for Malaysia

Licence To Occupy Template for Malaysia

A License to Occupy is a legal document used in Malaysia that grants permission to occupy and use a specific property for a defined period without creating a landlord-tenant relationship or conferring any interest in the land. This document is governed by Malaysian law, particularly the National Land Code 1965 and Contracts Act 1950, and provides a flexible arrangement for temporary occupation while protecting the property owner's interests. It includes detailed terms regarding permitted use, duration, fees, obligations of both parties, and termination provisions.

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What is a Licence To Occupy?

The License to Occupy is a crucial document in Malaysian property law that provides a flexible alternative to traditional leases. It is particularly useful for situations requiring temporary occupation rights without the complexities of a full tenancy agreement. This document is commonly used in commercial, retail, and professional environments where short-term or flexible occupation arrangements are needed. The agreement complies with Malaysian legislation, including the National Land Code 1965 and Contracts Act 1950, and typically includes essential provisions for property access, usage restrictions, duration, fees, and termination rights. It's especially valuable for pop-up stores, temporary office spaces, or short-term commercial uses where the occupier needs immediate access but the property owner wishes to retain significant control over the property.

What sections should be included in a Licence To Occupy?

1. Parties: Identifies and defines the Licensor and Licensee with full legal names and addresses

2. Background: Sets out the context of the agreement and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Grant of License: Specifies the grant of license to occupy and its nature as a personal right, not a tenancy

5. Duration: Specifies the period of occupation, including start and end dates

6. License Fee: Details the fee payable, payment terms, and method of payment

7. Permitted Use: Clearly defines how the Licensee may use the property

8. Licensee's Obligations: Lists all obligations including maintenance, conduct, and compliance with regulations

9. Licensor's Obligations: Outlines the Licensor's responsibilities regarding the property

10. Insurance: Specifies required insurance coverage and responsibilities

11. Termination: Details circumstances and procedures for ending the license

12. Notices: Specifies how formal communications between parties should be made

13. Governing Law: Confirms Malaysian law governs the agreement

What sections are optional to include in a Licence To Occupy?

1. Utilities and Services: Include when the license includes responsibility for utilities

2. Shared Facilities: Include when the property has common areas or shared facilities

3. Security Deposit: Include when a security deposit is required

4. Alterations: Include when specific provisions about property modifications are needed

5. Assignment and Sublicensing: Include when specific restrictions on transfer need to be emphasized

6. Force Majeure: Include when specific provisions for unforeseen circumstances are required

7. Quiet Enjoyment: Include when specific assurances about peaceful occupation are needed

What schedules should be included in a Licence To Occupy?

1. Schedule 1 - Property Description: Detailed description of the licensed property including floor plans and boundaries

2. Schedule 2 - Inventory: List of furniture, fixtures, and equipment included in the license

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

4. Schedule 4 - Service Charges: Breakdown of any additional charges or service fees

5. Appendix A - Photos: Photographic evidence of the property's condition at commencement

6. Appendix B - Licenses and Permits: Copies of relevant permits or licenses required for occupation

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

License Agreement

Sector

IP

Cost

Free to use
Relevant Industries

Real Estate

Commercial Property

Retail

Office Space

Co-working

Industrial

Hospitality

Education

Healthcare

Technology

Professional Services

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Commercial

Property Management

Asset Management

Compliance

Risk Management

Administration

Relevant Roles

Property Manager

Facilities Manager

Real Estate Manager

Legal Counsel

Commercial Director

Operations Manager

Business Development Manager

Retail Manager

Site Manager

Compliance Officer

Contract Administrator

Estate Manager

Asset 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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