The License to Occupy agreement is commonly used in Saudi Arabia when a property owner wishes to grant temporary occupation rights while maintaining significant control over the property. This document type is particularly relevant in the context of Saudi Arabia's evolving commercial property market and Vision 2030 economic reforms. It's typically used for situations such as pop-up stores, temporary office spaces, or short-term commercial activities where a full lease arrangement is not desired or appropriate. The agreement must comply with both civil law requirements and Shariah principles, making it distinct from similar documents in other jurisdictions. The document includes essential provisions for property use, payment terms, and party obligations, while maintaining the temporary and limited nature of the rights granted. It's particularly useful in commercial contexts where flexibility is required while ensuring legal compliance with Saudi Arabian property and commercial regulations.
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1. Parties: Identification of the Licensor (property owner) and Licensee (occupier), including full legal names and details
2. Background: Context of the agreement, property description, and purpose of the license
3. Definitions: Key terms used throughout the agreement, including 'Property', 'License Period', 'Permitted Use', etc.
4. Grant of License: Express grant of occupation rights, clearly stating this is a license not a lease, and specifying its temporary nature
5. License Period: Duration of the license, including start and end dates, and any extension provisions
6. License Fee: Amount payable, payment terms, method of payment, and consequences of late payment
7. Permitted Use: Specific authorized uses of the property and any restrictions
8. Licensee Obligations: Core responsibilities including maintenance, compliance with laws, and conduct requirements
9. Licensor Obligations: Responsibilities of the property owner, including access and basic services
10. Insurance and Liability: Insurance requirements and allocation of risks between parties
11. Termination: Circumstances allowing termination, notice requirements, and consequences
12. Notices: Process for formal communications between parties
13. Governing Law: Confirmation of Saudi Arabian law as governing law and reference to Shariah compliance
1. Utilities and Services: Used when the license includes provision of utilities or additional services
2. Security Deposit: Include when a security deposit is required from the Licensee
3. Alterations: Required when the Licensee may need to make changes to the property
4. Assignment and Sublicensing: Include if there's any possibility of transfer of rights
5. Force Majeure: Include for longer-term licenses or where specific risks need to be addressed
6. Environmental Matters: Required for properties where environmental compliance is significant
7. Dispute Resolution: Include detailed dispute resolution procedures for higher-value or complex arrangements
8. Confidentiality: Include where sensitive commercial information is involved
1. Schedule 1 - Property Description: Detailed description of the licensed property including plans and photographs
2. Schedule 2 - License Fee and Payment Terms: Detailed breakdown of fees, payment dates, and calculation methods
3. Schedule 3 - Permitted Use Details: Specific details of allowed activities and any restrictions
4. Schedule 4 - Property Rules and Regulations: Building rules, access procedures, and operational requirements
5. Schedule 5 - Service Level Agreement: Details of any services provided by the Licensor
6. Appendix A - Required Insurances: Specific insurance requirements and minimum coverage levels
7. Appendix B - Form of Bank Guarantee: Template for any required bank guarantee or security
8. Appendix C - Handover Protocol: Procedures for property handover at start and end of license period
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Retail
Commercial Property
Education
Professional Services
Healthcare
Hospitality
Manufacturing
Technology
Financial Services
Relevant Teams
Legal
Real Estate
Facilities Management
Operations
Commercial
Risk & Compliance
Corporate Services
Property Management
Asset Management
Contract Administration
Relevant Roles
Real Estate Manager
Property Manager
Facilities Director
Legal Counsel
Commercial Director
Operations Manager
Business Development Manager
Retail Manager
Asset Manager
Compliance Officer
Contract Administrator
Risk Manager
General Counsel
Corporate Services Manager
Space Planning Manager
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