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Property License Agreement for Nigeria

Property License Agreement Template for Nigeria

A Property License Agreement under Nigerian law is a legal document that grants specific usage rights for property without transferring ownership. This agreement is governed by Nigerian property law, particularly the Land Use Act of 1978, and establishes the terms and conditions under which a licensee may use a property for defined purposes. The document details the rights and obligations of both parties, including payment terms, permitted uses, maintenance responsibilities, and termination conditions, while ensuring compliance with both federal and state-level property regulations in Nigeria.

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What is a Property License Agreement?

A Property License Agreement is a crucial legal instrument in Nigerian property transactions, used when a property owner wishes to grant usage rights without transferring ownership or creating a lease. This document is particularly relevant in the Nigerian context, where land rights are governed by the Land Use Act 1978 and various state-level regulations. It provides a flexible alternative to leases and is commonly used for commercial, industrial, and temporary property arrangements. The agreement typically includes comprehensive terms covering property usage, duration, fees, maintenance obligations, and compliance requirements with local regulations. It's especially useful for businesses requiring property access without long-term commitment, and for property owners seeking to retain significant control while monetizing their assets.

What sections should be included in a Property License Agreement?

1. Parties: Identification and details of the Licensor and Licensee

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 being granted, including scope and limitations

5. Duration and Renewal: Term of the license and conditions for renewal

6. License Fee and Payment Terms: Financial terms including amount, payment schedule, and review mechanisms

7. Permitted Use: Detailed description of how the property may be used under the license

8. Licensee's Obligations: Key responsibilities and duties of the Licensee

9. Licensor's Obligations: Key responsibilities and duties of the Licensor

10. Maintenance and Repairs: Responsibilities for property maintenance and repairs

11. Insurance and Liability: Insurance requirements and allocation of risks

12. Termination: Circumstances and procedures for ending the agreement

13. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction details

14. Notices: Process for formal communications between parties

15. Execution: Signature blocks and execution formalities

What sections are optional to include in a Property License Agreement?

1. Assignment and Sublicensing: Include if the parties want to address the possibility of transferring rights or sublicensing

2. Environmental Compliance: Include if the property use involves environmental considerations

3. Security Deposit: Include if a security deposit is required from the Licensee

4. Utilities and Services: Include if there are specific arrangements for utilities and services

5. Alterations and Improvements: Include if the Licensee is permitted to make changes to the property

6. Force Majeure: Include if parties want specific provisions for unforeseen circumstances

7. Confidentiality: Include if sensitive information will be shared between parties

8. Dispute Resolution: Include if parties want specific dispute resolution procedures beyond court jurisdiction

What schedules should be included in a Property License Agreement?

1. Schedule 1 - Property Description: Detailed description of the licensed property including plans and boundaries

2. Schedule 2 - License Fee Schedule: Detailed breakdown of fees, payment dates, and review mechanisms

3. Schedule 3 - Permitted Use Details: Specific details of permitted activities and any restrictions

4. Schedule 4 - Maintenance Schedule: Detailed breakdown of maintenance responsibilities and schedules

5. Schedule 5 - Insurance Requirements: Specific insurance requirements and minimum coverage levels

6. Appendix A - Property Photos: Photographic evidence of property condition at commencement

7. Appendix B - Required Permits: Copies of relevant permits and licenses

8. Appendix C - Service Level Agreement: If applicable, details of service levels to be maintained

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

Nigeria

Publisher

Ƶ

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions








































Clauses


































Relevant Industries

Real Estate

Commercial Property

Industrial Manufacturing

Retail

Hospitality

Agriculture

Education

Healthcare

Mining

Oil and Gas

Telecommunications

Logistics

Entertainment

Religious Organizations

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Risk Management

Corporate Services

Business Development

Property Administration

Relevant Roles

Property Manager

Facilities Manager

Real Estate Director

Legal Counsel

Commercial Director

Operations Manager

Chief Financial Officer

Business Development Manager

Estate Surveyor

Compliance Officer

Property Administrator

Asset Manager

Risk Manager

Corporate Services Manager

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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