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License To Occupy Agreement for Malaysia

License To Occupy Agreement Template for Malaysia

A License to Occupy Agreement under Malaysian law is a legal document that grants permission to occupy and use a specific property for a defined period without creating a landlord-tenant relationship or conveying any interest in the property. This document is governed by Malaysian property and contract law, particularly the National Land Code 1965 and Contracts Act 1950. It provides a flexible arrangement that outlines the terms of occupation, including duration, permitted use, fees, and obligations of both parties, while maintaining the property owner's fundamental control over the property.

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What is a License To Occupy Agreement?

The License To Occupy Agreement is commonly used in Malaysia when a property owner wishes to grant temporary occupation rights without creating a formal tenancy or lease arrangement. This document is particularly useful for short-term occupations, pop-up stores, temporary workspaces, or situations requiring flexibility in property use arrangements. It provides a more flexible alternative to traditional leases while still maintaining legal protections for both parties under Malaysian law. The agreement typically includes specific terms regarding the permitted use of the property, duration of occupation, payment terms, and various obligations of both parties. This type of agreement is especially relevant in today's dynamic business environment where traditional long-term leases may not suit all business needs.

What sections should be included in a License To Occupy Agreement?

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

2. Background: Context of the agreement and brief description of the property and purpose of occupation

3. Definitions: Definitions of key terms used throughout the agreement

4. Grant of License: Clear statement of the permission to occupy and specification that this is a license, not a lease

5. Duration: Period of occupation, including start and end dates, and any renewal provisions

6. License Fee: Amount payable, payment terms, and method of payment

7. Permitted Use: Specific purposes for which the property may be used

8. Licensee's Obligations: Key responsibilities including maintenance, conduct, and compliance with regulations

9. Licensor's Obligations: Responsibilities of the property owner including maintenance of structure and services

10. Utilities and Outgoings: Responsibility for payment of utilities and other operating costs

11. Insurance: Insurance requirements for both parties

12. Termination: Circumstances under which the agreement can be terminated by either party

13. Notices: How formal communications between parties should be made

14. Governing Law: Specification of Malaysian law as governing law and jurisdiction

What sections are optional to include in a License To Occupy Agreement?

1. Security Deposit: Terms of security deposit if required - optional for short-term or low-risk arrangements

2. Fit-Out Works: Provisions for any modifications the Licensee is permitted to make - needed if alterations are allowed

3. Shared Facilities: Rules for use of common areas - required if property is part of larger building or complex

4. Assignment and Sublicensing: Provisions regarding transfer of rights - needed for longer-term arrangements

5. Force Majeure: Provisions for unforeseen circumstances - recommended for longer-term arrangements

6. Environmental Matters: Environmental obligations - needed for industrial or sensitive properties

7. Access and Security: Specific access arrangements and security measures - needed for properties with special access requirements

8. Alternative Dispute Resolution: Mediation or arbitration provisions - recommended for high-value arrangements

What schedules should be included in a License To Occupy Agreement?

1. Schedule 1 - Property Description: Detailed description of the licensed area including floor plans and photographs

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

3. Schedule 3 - House Rules: Specific rules and regulations for occupation of the property

4. Schedule 4 - Condition Report: Initial condition of the property and any included fixtures/fittings

5. Schedule 5 - Services Provided: List of services provided by the Licensor, if any

6. Appendix A - Plan of Licensed Area: Floor plan or site plan clearly marking the licensed area

7. Appendix B - Inventory: List of any furniture, equipment or other items included in the license

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Use Agreement

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Commercial Real Estate

Retail

Industrial

Education

Healthcare

Hospitality

Religious Institutions

Non-Profit

Technology

Manufacturing

Co-working Spaces

Pop-up Retail

Events and Entertainment

Residential Property

Government and Public Sector

Relevant Teams

Legal

Facilities Management

Operations

Real Estate

Risk and Compliance

Finance

Administration

Property Management

Corporate Services

Business Development

Procurement

Relevant Roles

Property Manager

Facilities Manager

Legal Counsel

Real Estate Manager

Operations Director

Business Development Manager

Corporate Real Estate Manager

Compliance Officer

Asset Manager

Space Planning Manager

Contract Administrator

Risk Manager

Company Secretary

Chief Financial Officer

Chief Operating 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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