A Property License Agreement is commonly used in Hong Kong when parties need a flexible arrangement for temporary property use without establishing a formal lease or tenancy. This document is particularly relevant in situations such as pop-up stores, temporary office spaces, event venues, or shared workspace arrangements. The agreement typically includes specific terms regarding property access, usage limitations, fee structures, and termination rights, all governed by Hong Kong law. It provides a more flexible alternative to traditional leases while still maintaining legal protections for both parties. The document must comply with Hong Kong's Conveyancing and Property Ordinance and related regulations, making it suitable for various commercial and residential applications where short-term or flexible property use arrangements are needed.
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1. Parties: Identifies and defines the Licensor and Licensee with full legal names and addresses
2. Background: Sets out the context of the agreement and confirms the Licensor's authority to grant the license
3. Definitions: Defines key terms used throughout the agreement including 'Property', 'License Period', and 'Permitted Use'
4. Grant of License: Clearly states the grant of license and its nature, emphasizing it creates no tenancy or lease
5. License Period: Specifies the duration of the license, including start and end dates
6. License Fee: Details the amount, payment schedule, and method of payment
7. Permitted Use: Clearly defines the authorized uses of the property under the license
8. Licensee's Obligations: Lists all responsibilities and restrictions on the Licensee's use of the property
9. Licensor's Obligations: Outlines the Licensor's commitments and responsibilities
10. Insurance and Liability: Specifies insurance requirements and allocation of risks
11. Termination: Sets out circumstances and procedures for ending the license
12. Governing Law: Confirms Hong Kong law governs the agreement
13. Entire Agreement: Standard boilerplate confirming this document represents the complete agreement
1. Utilities and Services: Include when the license includes use of utilities or additional services
2. Security Deposit: Include when a security deposit is required from the Licensee
3. Alterations: Include when the Licensee may need to make changes to the property
4. Shared Facilities: Include when the license involves use of common areas or shared spaces
5. Assignment and Sublicensing: Include when there's a need to explicitly prohibit or regulate transfer of rights
6. Force Majeure: Include when specific provisions for unforeseen circumstances are needed
7. Confidentiality: Include when the arrangement involves sensitive commercial information
8. Environmental Matters: Include when the property use involves environmental considerations
1. Property Description: Detailed description of the licensed property including floor plans and boundaries
2. License Fee Schedule: Breakdown of fees, payment dates, and any escalation provisions
3. Permitted Use Details: Specific details of allowed activities and any restrictions
4. Property Rules and Regulations: Building rules, access procedures, and operational guidelines
5. Condition Report: Documentation of property condition at commencement of license
6. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements
7. Service Level Agreement: Details of any included services or maintenance arrangements
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