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Licence To Occupy for South Africa

Licence To Occupy Template for South Africa

A License to Occupy is a legal document governed by South African property and contract law that grants permission to use or occupy a property for a specific purpose and duration without creating a landlord-tenant relationship. This agreement provides more flexibility than a lease while offering clear terms for temporary occupation, including usage rights, fees, duration, and termination provisions. It incorporates relevant South African legislation including the Prevention of Illegal Eviction Act and Consumer Protection Act, while maintaining the distinct nature of a license versus a lease agreement.

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What is a Licence To Occupy?

The Licence To Occupy is a vital legal instrument in South African property law, designed for situations where temporary or flexible occupation rights are required without establishing a formal landlord-tenant relationship. It's particularly useful for short-term occupations, pop-up venues, shared spaces, or when property owners need to maintain greater control over the property than a lease would allow. The document typically includes specific terms about the nature of occupation, duration, permitted use, fees, and termination rights, while ensuring compliance with South African legislation such as the Prevention of Illegal Eviction Act and Consumer Protection Act. This type of agreement offers more flexibility than traditional leases while providing clear legal protection for both parties involved.

What sections should be included in a Licence To Occupy?

1. Parties: Identification of the Licensor (property owner/controller) and Licensee (occupier)

2. Background: Context of the agreement and confirmation that this is a license to occupy, not a lease

3. Definitions: Key terms used throughout the agreement including Property, License Period, License Fee, Permitted Use

4. Grant of License: Express terms of the permission to occupy, including scope and limitations

5. License Period: Duration of the occupation rights, including start and end dates

6. License Fee: Amount payable, payment terms, and any review mechanisms

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

8. Licensee Obligations: Responsibilities including maintenance, conduct, compliance with regulations

9. Licensor Obligations: Responsibilities including access, services, maintenance of structure

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

11. Termination: Circumstances and process for ending the license

12. General Provisions: Standard clauses including notices, entire agreement, governing law

What sections are optional to include in a Licence To Occupy?

1. Services: Details of additional services provided by the Licensor, used when utilities or other services are included

2. Security Deposit: Terms for deposit payment and return, included when a deposit is required

3. Alterations: Rules regarding modifications to the property, needed when alterations might be permitted

4. Shared Facilities: Rules for common areas, included when the property has shared spaces

5. Operating Hours: Specified times of access/use, included for commercial or restricted-access properties

6. Environmental Matters: Environmental obligations and compliance, important for industrial or sensitive properties

What schedules should be included in a Licence To Occupy?

1. Property Description: Detailed description of the licensed area including plans/drawings

2. License Fee Schedule: Breakdown of fees, payment dates, and review mechanisms

3. Inventory: List of any furniture, equipment, or items included in the license

4. House Rules: Specific rules and regulations for using the property

5. Service Level Agreement: Details of any services provided, their standards and costs

6. Condition Report: Documentation of property condition at commencement

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

South Africa

Publisher

Ƶ

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions


























Clauses





























Relevant Industries

Real Estate

Commercial Property

Retail

Office Space

Industrial

Residential Property

Co-working Spaces

Pop-up Retail

Educational Facilities

Healthcare Facilities

Events and Entertainment

Hospitality

Relevant Teams

Legal

Property Management

Facilities Management

Operations

Risk and Compliance

Real Estate

Administrative Support

Business Development

Asset Management

Relevant Roles

Property Manager

Facilities Manager

Real Estate Manager

Legal Counsel

Operations Manager

Commercial Director

Asset Manager

Property Administrator

Compliance Officer

Risk Manager

Business Development Manager

Space Planning 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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