Occupancy License Agreement for Malaysia

Occupancy License Agreement Template for Malaysia

A Malaysian Occupancy License Agreement is a legal document that grants temporary permission to use and occupy a specific space or property without creating a landlord-tenant relationship. This agreement is governed by Malaysian law, particularly the Contracts Act 1950 and relevant property regulations. It sets out the terms and conditions for temporary occupation, including the specific area licensed, permitted use, duration, fees, and obligations of both parties. The document is particularly useful for short-term arrangements and situations where flexibility is required, while ensuring compliance with Malaysian property and commercial regulations.

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What is a Occupancy License Agreement?

The Occupancy License Agreement is widely used in Malaysia for situations requiring temporary occupation rights without establishing a formal lease arrangement. This document is essential when businesses or individuals need flexible, short-term access to space while maintaining clear legal boundaries and protections. It's particularly relevant in commercial contexts such as pop-up stores, temporary office spaces, or event venues. The agreement must comply with Malaysian legal requirements, including the Contracts Act 1950 and relevant property regulations. It typically includes detailed terms about the licensed area, duration, permitted use, fees, and parties' obligations, while explicitly maintaining the licensor's control and possession of the property.

What sections should be included in a Occupancy License Agreement?

1. Parties: Identification of the Licensor and Licensee with full legal names and addresses

2. Background: Context of the agreement and confirmation of the Licensor's authority to grant the license

3. Definitions: Key terms used throughout the agreement including 'Licensed Area', 'Permitted Use', 'License Fee', and 'License Period'

4. Grant of License: Express grant of license, specifying its non-exclusive and temporary nature

5. License Period: Duration of the license and any renewal provisions

6. License Fee and Other Charges: Amount, payment terms, and other financial obligations

7. Permitted Use: Specific authorized uses of the Licensed Area

8. Licensee's Obligations: Core responsibilities including maintenance, conduct, and compliance requirements

9. Licensor's Rights and Obligations: Access rights, services provided, and maintenance responsibilities

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

11. Termination: Grounds for termination and consequences

12. General Provisions: Standard clauses including notices, governing law, and entire agreement

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

1. Utilities and Services: Detailed provisions about utility charges and services when these are separately charged or managed

2. Fit-Out Works: Include when the Licensee is permitted to conduct initial fitting out works

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

4. Operating Hours: Necessary for commercial premises with specific operating hour restrictions

5. Common Areas: Include for premises within larger buildings or complexes with shared facilities

6. Assignment and Sublicensing: Include if there's any possibility of transfer rights being granted

7. Force Majeure: Include for longer-term licenses or where business continuity is critical

What schedules should be included in a Occupancy License Agreement?

1. Schedule 1 - Licensed Area: Floor plan and detailed description of the licensed premises

2. Schedule 2 - License Fee and Payment Terms: Detailed breakdown of fees, payment dates, and calculation methods

3. Schedule 3 - House Rules: Building or facility rules and regulations

4. Schedule 4 - Permitted Use Details: Specific description of authorized activities and any restrictions

5. Schedule 5 - Condition Report: Initial condition of the Licensed Area

6. Schedule 6 - Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

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

Retail

Commercial Property

Events and Entertainment

Education

Healthcare

Hospitality

Co-working Spaces

Pop-up Retail

Shopping Centers

Office Space Management

Industrial and Warehousing

Relevant Teams

Legal

Property Management

Operations

Facilities Management

Commercial

Risk and Compliance

Real Estate

Business Development

Administration

Asset Management

Relevant Roles

Property Manager

Facilities Manager

Legal Counsel

Real Estate Manager

Operations Director

Commercial Director

Retail Manager

Events Manager

Business Development Manager

Asset Manager

Leasing Manager

Property Administrator

Risk Manager

Compliance Officer

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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