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Businessmen

Licence to Occupy

​A licence to occupy, also known as an occupancy licence, is a legal agreement that grants a person or entity the right to occupy and use a specific property for a defined period.

Unlike a lease or tenancy agreement, a licence to occupy does not create a landlord-tenant relationship or confer exclusive possession rights. Instead, it allows for a more flexible arrangement where the occupant has permission to use the property for a specific purpose or period, typically subject to certain conditions.

Some of the main elements of a Licence to Occupy include:

  1. Parties: The licence agreement identifies the licensor (property owner) and the licensee (occupant) involved in the arrangement. It outlines their roles, responsibilities, and relationship with each other.
     

  2. Property Description: The licence agreement provides a detailed description of the property being licenced, including its address, boundaries, and any specific areas or facilities included within the licence.
     

  3. Purpose and Duration: The agreement clearly states the purpose for which the licensee is granted the right to occupy the property. It also specifies the licence duration, including the start and end dates or any renewal or termination provisions.
     

  4. Permission and Restrictions: The licence outlines the specific permissions granted to the licensee regarding the use and access of the property. It may specify any restrictions, limitations, or conditions the licensee must adhere to during their occupation.
     

  5. Payment and Consideration: The agreement may include provisions regarding any fees or consideration from the licensee to the licensor in exchange for the licence to occupy. This payment can be rent, licence fees, or other agreed-upon financial arrangements.
     

  6. Revocability: Unlike a lease, a licence to occupy can be revoked or terminated by the licensor without the same legal complexities associated with eviction. The agreement may outline the circumstances under which the licence can be terminated and the notice period required.
     

  7. Maintenance and Repairs: The licence agreement specifies both parties' responsibilities regarding the property's maintenance and repairs. It may indicate which party is responsible for specific areas or items within the property during the licence period.
     

  8. Insurance and Indemnity: The agreement may address insurance requirements, specifying whether the licensee or licensor is responsible for obtaining and maintaining insurance coverage. It may also outline each party's indemnification obligations in case of damages or liabilities arising from the licensee's use of the property.
     

  9. Alterations and Improvements: The licence agreement may address any permissions or restrictions regarding alterations, modifications, or improvements the licencee can make to the property. It may outline the conditions for obtaining the licensor's consent and the responsibility for restoration at the end of the licence period.
     

  10. Dispute Resolution: The agreement may include provisions for resolving disputes between the licensor and licensee, such as through mediation or arbitration, to address any conflicts that may arise during the licence period.
     

​It is crucial for both parties to carefully review and understand the terms and conditions of the licence to occupy, seeking legal advice if needed, to ensure a clear understanding of their rights, obligations, and the scope of the licence arrangement.

For further information,
please contact us to discuss your needs.

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