The Lease and License Agreement is a specialized legal instrument used in Australian commercial property transactions where both exclusive and non-exclusive property rights need to be granted to the same party. This document is particularly relevant when a tenant requires exclusive use of specific premises (such as office space or retail area) while also needing access to shared facilities (such as parking areas, common areas, or specialized facilities). The agreement must comply with Australian federal and state property laws, incorporating provisions from relevant legislation such as the Property Law Act, Retail Shop Leases Act (where applicable), and Australian Consumer Law. It establishes the rights, obligations, and commercial terms for both the lease and license components, including rent, license fees, maintenance responsibilities, and operational conditions. This type of agreement is commonly used in multi-tenant buildings, commercial complexes, and specialized facilities where shared access arrangements are necessary alongside traditional lease provisions.
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1. Parties: Identification and details of the lessor/licensor and lessee/licensee
2. Background: Context of the agreement and brief description of the property and intended use
3. Definitions and Interpretation: Defined terms used throughout the agreement and rules of interpretation
4. Grant of Lease: Formal grant of the leasehold interest and specification of the leased premises
5. Grant of License: Terms of the license and specification of licensed areas/rights
6. Term and Option Periods: Duration of the lease and license, including any renewal options
7. Rent and License Fee: Payment terms, amounts, review mechanisms, and payment methods
8. Outgoings and Utilities: Responsibility for operating costs, utilities, and other expenses
9. Security Deposit: Details of security deposit or bank guarantee requirements
10. Use of Premises: Permitted use of the property and any restrictions
11. Maintenance and Repairs: Responsibilities for maintenance, repairs, and replacements
12. Insurance: Required insurance coverage for both parties
13. Default and Termination: Events of default, consequences, and termination provisions
14. Assignment and Subletting: Rights and restrictions regarding transfer of interests
15. General Provisions: Standard contract clauses including notices, governing law, etc.
1. Fit-out Works: Include when tenant improvements or initial fit-out work is required
2. Trading Hours: Include for retail or commercial premises with specific operating hours
3. Environmental Obligations: Include when property has specific environmental requirements or risks
4. Car Parking: Include when specific parking rights are part of the agreement
5. Signage Rights: Include when external or internal signage is permitted
6. Common Areas: Include for multi-tenanted buildings with shared facilities
7. Market Rent Review: Include when market rent reviews are part of the rent review mechanism
8. Building Manager: Include when property has an appointed building manager with specific roles
9. Green Lease Provisions: Include for environmentally sustainable buildings or when required by regulations
10. Covid-19 or Force Majeure Provisions: Include specific provisions for handling pandemics or other force majeure events
1. Schedule 1 - Property Details: Detailed description of the leased premises and licensed areas
2. Schedule 2 - Commercial Terms: Key commercial terms including rent, term, commencement date
3. Schedule 3 - Permitted Use: Detailed description of permitted activities and use restrictions
4. Schedule 4 - Fit-out Specifications: Technical specifications for any approved fit-out works
5. Schedule 5 - Building Rules: Operational rules and regulations for the building
6. Schedule 6 - Maintenance Responsibilities: Detailed breakdown of maintenance obligations
7. Appendix A - Plan of Premises: Floor plans and site plans of the leased premises
8. Appendix B - Condition Report: Initial condition report of the premises
9. Appendix C - Insurance Requirements: Detailed insurance specifications and requirements
10. Appendix D - Guarantee Form: Form of personal or bank guarantee if required
Relevant legal definitions
Clauses
Relevant Industries
Commercial Real Estate
Retail
Industrial
Office Space
Healthcare
Education
Hospitality
Technology
Manufacturing
Logistics
Professional Services
Entertainment
Relevant Teams
Legal
Operations
Finance
Facilities Management
Real Estate
Risk and Compliance
Property Services
Administration
Commercial
Procurement
Relevant Roles
Property Manager
Facility Manager
Legal Counsel
Real Estate Manager
Operations Director
Chief Financial Officer
Business Development Manager
Asset Manager
Leasing Manager
Risk Manager
Compliance Officer
Commercial Director
Contract Administrator
Property Services Manager
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