Lease & License Agreement for New Zealand

Lease & License Agreement Template for New Zealand

A comprehensive legal document governed by New Zealand law that establishes the terms and conditions under which a property owner (landlord/lessor) grants occupancy rights to a tenant/lessee. This agreement combines elements of both lease and license arrangements, providing flexibility in property usage while ensuring compliance with New Zealand property law, including the Property Law Act 2007 and related legislation. It covers essential aspects such as rent, term, maintenance obligations, permitted use, and both parties' rights and responsibilities, while incorporating specific provisions required under New Zealand jurisdiction.

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What is a Lease & License Agreement?

The Lease & License Agreement is a fundamental document in New Zealand property transactions, used when a property owner wishes to grant occupancy rights while maintaining certain controls over the property's use. This hybrid agreement type is particularly valuable in situations requiring flexibility beyond traditional lease arrangements, such as shared spaces, temporary usage rights, or specialized commercial premises. The document must comply with New Zealand's Property Law Act 2007, Residential Tenancies Act 1986 (if applicable), and other relevant legislation. It typically includes detailed provisions for rent, maintenance, insurance, permitted use, and dispute resolution, while accommodating specific requirements of different property types and business needs. This agreement format is increasingly popular in modern commercial arrangements where traditional lease structures may not fully address the parties' requirements.

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

1. Parties: Identification of the landlord/licensor and tenant/licensee with full legal names and details

2. Background: Context of the agreement, brief description of the property, and purpose of the lease/license

3. Definitions: Defined terms used throughout the agreement including Property, Term, Commencement Date, Permitted Use, etc.

4. Grant of Lease: Formal grant of lease/license, specifying the property and any exclusive/non-exclusive areas

5. Term and Renewal: Duration of lease/license, commencement date, expiry date, and renewal options

6. Rent and Operating Expenses: Rent amount, payment terms, operating expenses, utilities, and other charges

7. Rent Review: Mechanism and timing for rent reviews during the term

8. Security Deposit/Bank Guarantee: Details of security deposit or bank guarantee requirements

9. Permitted Use: Specified authorized uses of the property

10. Maintenance and Repairs: Responsibilities for maintenance, repairs, and replacements

11. Insurance: Required insurance coverage for both parties

12. Assignment and Subletting: Conditions for transferring or sharing the space

13. Landlord's Covenants: Obligations and promises of the landlord

14. Tenant's Covenants: Obligations and promises of the tenant

15. Default and Termination: Events of default and termination rights

16. Dispute Resolution: Process for resolving disputes between parties

17. General Provisions: Standard boilerplate clauses including notices, governing law, etc.

18. Execution: Signature blocks and execution details

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

1. Fit-out Works: Used when tenant improvements or modifications are planned, detailing approval process and conditions

2. Operating Hours: Required for retail or commercial properties with specific trading hours

3. Common Areas: Needed for multi-tenanted buildings, detailing rights and cost sharing

4. Environmental Obligations: Required for properties with specific environmental compliance requirements

5. Option to Purchase: Include when granting tenant right to purchase property during lease term

6. Guarantees: Required when personal or corporate guarantees are part of the arrangement

7. Marketing and Signage: Important for retail premises or when specific signage rights are granted

8. Seismic Requirements: Necessary for buildings requiring specific seismic ratings or upgrades

9. Car Parking: Used when specific car parking rights are included in the lease

10. Building Management: Required for premises with building manager or body corporate involvement

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

1. Schedule 1 - Property Details: Detailed description of premises including floor plans and area calculations

2. Schedule 2 - Rent and Operating Expenses: Detailed breakdown of rent, operating expenses, and payment schedules

3. Schedule 3 - Fit-out Specifications: Detailed specifications for any approved tenant fit-out works

4. Schedule 4 - Maintenance Responsibilities: Detailed allocation of maintenance responsibilities between parties

5. Schedule 5 - Building Rules: Specific rules and regulations for building use and access

6. Schedule 6 - Condition Report: Detailed report on condition of premises at commencement

7. Schedule 7 - Insurance Requirements: Specific insurance requirements for both parties

8. Appendix A - Plans: Floor plans, site plans, and location plans

9. Appendix B - Special Conditions: Any special or non-standard conditions applicable to the lease

10. Appendix C - Guarantee Form: Form of guarantee if required by the agreement

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

New Zealand

Publisher

Genie AI

Document Type

Licensing Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Retail

Commercial Office

Industrial

Healthcare

Education

Hospitality

Technology

Manufacturing

Professional Services

Logistics

Agriculture

Entertainment

Non-profit Organizations

Government

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Risk & Compliance

Corporate Services

Administration

Business Development

Property Management

Relevant Roles

Property Manager

Facilities Manager

Legal Counsel

Real Estate Manager

Commercial Director

Operations Manager

Chief Financial Officer

Asset Manager

Leasing Manager

Corporate Services Manager

Risk Manager

Compliance Officer

Business Development Manager

Property Administrator

Contract Manager

Industries
Property Law Act 2007: Main legislation governing property transactions and leases in New Zealand, covering fundamental aspects of property law including lease requirements, covenants, and mortgages
Residential Tenancies Act 1986: Governs residential tenancy agreements, defining rights and obligations of landlords and tenants, including provisions for rent, bonds, and dispute resolution
Contract and Commercial Law Act 2017: Provides the legal framework for contract formation, enforcement, and remedies, essential for the validity and enforceability of lease agreements
Building Act 2004: Sets requirements for building standards and safety compliance, relevant for ensuring leased premises meet legal safety standards
Land Transfer Act 2017: Governs the registration and transfer of land interests, including leases that need to be registered on land titles
Health and Safety at Work Act 2015: Establishes obligations for ensuring workplace safety, relevant for commercial lease agreements and shared spaces
Resource Management Act 1991: Controls environmental and planning aspects of property use, important for determining permitted activities in leased premises
Fair Trading Act 1986: Protects against misleading and deceptive conduct in trade, including leasing transactions and property advertisements
Unit Titles Act 2010: Relevant for leases involving unit titles or apartments, governing body corporate rules and shared facilities
Privacy Act 2020: Governs the collection and handling of personal information in the leasing process, including tenant applications and records
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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