License Agreement For Use Of Real Property for Malaysia

License Agreement For Use Of Real Property Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes the terms and conditions under which a property owner (licensor) grants permission to another party (licensee) to use a specific real property for a defined purpose and duration. This agreement differs from a lease as it typically grants more limited rights and may be more easily terminated. The document incorporates relevant provisions from the Malaysian National Land Code 1965 and Contracts Act 1950, ensuring compliance with local property regulations while protecting both parties' interests through clearly defined rights, obligations, and operational parameters.

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What is a License Agreement For Use Of Real Property?

The License Agreement For Use Of Real Property serves as a critical legal instrument in Malaysian property transactions, providing a flexible alternative to traditional leases. This document is particularly suitable when temporary or limited property rights are needed, such as for pop-up stores, temporary workspaces, or specific-use facilities. It establishes the scope of permitted use, duration, financial terms, and respective obligations of the parties while ensuring compliance with Malaysian property laws, including the National Land Code 1965 and relevant local authority regulations. The agreement provides less extensive rights than a lease but offers greater flexibility in terms of duration and termination, making it ideal for short-term or specific-purpose property use arrangements.

What sections should be included in a License Agreement For Use Of Real Property?

1. Parties: Identification and details of the licensor and licensee

2. Background: Context of the agreement and brief description of the property and intended use

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

4. Grant of License: Specific terms of the license grant, including scope and purpose of use

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

6. License Fee: Amount, payment schedule, and method of payment for the license

7. Permitted Use: Detailed description of how the property may be used by the licensee

8. Licensee's Obligations: Core responsibilities of the licensee including maintenance, compliance with laws, and conduct

9. Licensor's Rights and Obligations: Rights reserved by the licensor and their obligations

10. Insurance and Liability: Insurance requirements and allocation of liability

11. Termination: Circumstances under which the agreement can be terminated and the process

12. Governing Law: Specification of Malaysian law as governing law and jurisdiction

13. General Provisions: Standard boilerplate clauses including notices, entire agreement, and amendments

What sections are optional to include in a License Agreement For Use Of Real Property?

1. Utilities and Services: Details of responsibility for utilities when these are not included in the license fee

2. Alterations and Improvements: Terms regarding modifications to the property, if permitted

3. Security Deposit: Terms of security deposit if required by the licensor

4. Assignment and Sublicensing: Provisions regarding transfer of rights, typically used for longer-term licenses

5. Force Majeure: Provisions for unforeseen circumstances affecting the use of the property

6. Environmental Compliance: Specific environmental obligations when the property use involves potential environmental impacts

7. Operating Hours: Specific times during which the property can be used, if restricted

8. Shared Facilities: Terms for use of common areas or shared facilities if applicable

What schedules should be included in a License Agreement For Use Of Real Property?

1. Property Description: Detailed description of the licensed property including address, boundaries, and features

2. Plan/Drawing: Floor plan or site plan of the licensed property

3. License Fee Schedule: Detailed breakdown of license fees, payment dates, and review mechanisms

4. Permitted Use Details: Comprehensive list of permitted activities and any specific restrictions

5. Maintenance Schedule: Detailed allocation of maintenance responsibilities between parties

6. House Rules: Specific rules and regulations governing the use of the property

7. Inventory List: List of any furniture, fixtures, or equipment included in the license

8. Required Licenses and Permits: List of necessary governmental or regulatory approvals for the intended use

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

Use Agreement

Cost

Free to use
Relevant Industries

Real Estate

Retail

Hospitality

Commercial Office Space

Industrial

Education

Healthcare

Entertainment

Logistics

Agriculture

Technology

Relevant Teams

Legal

Real Estate

Operations

Facilities Management

Risk & Compliance

Property Management

Business Development

Finance

Administration

Relevant Roles

Property Manager

Facility Manager

Real Estate Director

Legal Counsel

Operations Manager

Business Development Manager

Asset Manager

Contract Administrator

Risk Manager

Compliance Officer

Space Planning Manager

Site 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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