The Licence Agreement Tenancy is utilized in the Philippines when parties seek to establish a more flexible occupancy arrangement than a traditional lease. This document is particularly relevant when the property owner wishes to retain greater control over the property while granting specific usage rights to the occupant. It's commonly used for temporary arrangements, shared spaces, or situations requiring quick termination rights. The agreement must comply with Philippine property law, including the Civil Code of the Philippines, local government regulations, and specific property-related legislation such as the Rent Control Act where applicable. This document typically includes detailed terms about permitted use, duration, fees, maintenance responsibilities, and termination rights, while specifically addressing Philippine legal requirements for property occupation and use.
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1. Parties: Identification of the Licensor and Licensee with complete details including registration numbers for companies
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 purpose and scope of permitted use
5. Duration: Term of the license, including start date, end date, and any renewal provisions
6. License Fee: Amount, payment schedule, and method of payment for the license fee
7. Security Deposit: Details of security deposit amount, terms of holding, and conditions for return
8. Permitted Use: Specific description of how the property may be used and any restrictions
9. Licensee's Obligations: Core responsibilities of the licensee including maintenance, utilities, and conduct
10. Licensor's Obligations: Core responsibilities of the licensor including maintenance of structure and services
11. Utilities and Outgoings: Responsibility for utilities, taxes, and other operational costs
12. Repairs and Maintenance: Allocation of repair and maintenance responsibilities
13. Insurance: Required insurance coverage for both parties
14. Termination: Grounds and process for termination of the license
15. Governing Law: Specification of Philippine law as governing law and jurisdiction
1. Fit-out Works: Include when the licensee is permitted to make modifications to the space
2. Sublicensing: Include if sublicensing is to be permitted (usually prohibited)
3. Force Majeure: Include for longer-term licenses to address unforeseen circumstances
4. Environmental Matters: Include for industrial or commercial properties where environmental compliance is crucial
5. Operating Hours: Include for commercial properties with specific operating hour restrictions
6. Security Arrangements: Include for properties requiring specific security measures
7. Common Areas: Include when the property is part of a larger complex with shared facilities
8. Marketing and Signage: Include for commercial properties where advertising and signage rights need to be addressed
1. Property Description: Detailed description of the licensed property including floor plans and boundaries
2. Inventory: List of furniture, fixtures, and equipment included in the license
3. House Rules: Building or property rules and regulations
4. Service Charges: Breakdown of any additional service charges or maintenance fees
5. Condition Report: Initial condition report of the property with photographs
6. Fit-out Guidelines: Technical specifications and guidelines for any permitted modifications
7. Insurance Requirements: Detailed insurance requirements for both parties
8. Utilities and Meters: Details of utility connections and meter readings at commencement
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