The License To Use Property Agreement is a crucial document in Hong Kong's property market, providing a flexible mechanism for property owners to grant usage rights without creating a leasehold interest. This agreement is particularly valuable for short-term arrangements, shared spaces, or situations requiring more operational flexibility than traditional leases. It sets out the specific terms of property usage, including duration, permitted activities, fees, and responsibilities of both parties. The document must comply with Hong Kong property law requirements while being less formal than a lease agreement. It's commonly used for commercial spaces, pop-up stores, co-working arrangements, or temporary facilities, offering protection for both the property owner and user while maintaining clarity about the limited nature of the rights being granted.
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1. Parties: Identifies and defines the Licensor and Licensee with full legal names and addresses
2. Background: Explains the context of the agreement and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement including Property, Permitted Use, License Period, and License Fee
4. Grant of License: Specifies the exact rights being granted and any restrictions on use
5. License Period: Details the duration of the license, including start date, end date, and any renewal options
6. License Fee and Payment Terms: Specifies the amount, payment schedule, and method of payment
7. Licensee's Obligations: Lists all responsibilities and obligations of the Licensee regarding use and maintenance
8. Licensor's Obligations: Details the Licensor's responsibilities regarding access and maintenance
9. Insurance and Liability: Specifies insurance requirements and allocation of risks
10. Termination: Sets out circumstances and procedures for early termination
11. Consequences of Termination: Details what happens after termination, including property restoration
12. General Provisions: Standard contract clauses including notices, entire agreement, and governing law
1. Security Deposit: Include when a security deposit is required from the Licensee
2. Utilities and Services: Include when the license includes provisions for utilities or additional services
3. Alterations and Improvements: Include when the Licensee is permitted to make changes to the property
4. Assignment and Sublicensing: Include when addressing whether the Licensee can transfer rights to others
5. Force Majeure: Include when parties want protection against unforeseen circumstances
6. Confidentiality: Include when sensitive information will be shared between parties
7. Dispute Resolution: Include when specific dispute resolution procedures are required
1. Schedule 1 - Property Description: Detailed description of the licensed property including floor plans and photographs
2. Schedule 2 - Permitted Use: Detailed specification of allowed activities and any restrictions
3. Schedule 3 - License Fee Schedule: Breakdown of fees, payment dates, and any incremental increases
4. Schedule 4 - House Rules: Building or property rules and regulations that apply to the Licensee
5. Schedule 5 - Condition Report: Documentation of property condition at commencement of license
6. Appendix A - Insurance Requirements: Detailed insurance specifications and minimum coverage requirements
7. Appendix B - Services and Utilities: List of included services and utilities with specifications
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