The Lease & License Agreement is essential for transactions involving property rental with additional usage rights in the Philippines. This document is commonly used when the arrangement extends beyond simple property occupation to include specific licensed activities or facility usage rights. It combines elements of a standard lease agreement with licensing provisions, making it suitable for complex commercial arrangements, mixed-use properties, or situations requiring careful regulation of tenant activities. The agreement must comply with Philippine property laws, including the Civil Code, Rent Control Act, and local government regulations. It's particularly relevant for commercial properties where tenants require specific operational rights, or residential properties with shared facilities. The document typically includes detailed provisions on property use, maintenance obligations, payment terms, and the scope of licensed activities, while incorporating necessary protections for both parties under Philippine law.
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1. Parties: Identifies and provides full details of the lessor/licensor and lessee/licensee, including their legal capacity to contract
2. Background: Sets out the context of the agreement, including brief description of the property and the parties' intention to enter into a lease and license arrangement
3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent misinterpretation
4. Grant of Lease: Specifies the formal grant of lease rights and describes the property being leased
5. Term and Renewal: Specifies the duration of the lease, commencement date, and any renewal options
6. Rent and Other Charges: Details the rent amount, payment schedule, security deposit, utilities, and other applicable charges
7. Use of Property: Specifies permitted uses of the property and any restrictions
8. Maintenance and Repairs: Outlines responsibilities for maintaining and repairing the property
9. Insurance and Liability: Specifies required insurance coverage and allocation of risks
10. Default and Remedies: Details what constitutes default and the available remedies
11. Termination: Specifies grounds for termination and the process thereof
12. General Provisions: Includes standard clauses such as governing law, notices, and entire agreement
1. Grant of License: Required when specific licensed rights (e.g., use of facilities, parking) are being granted alongside the lease
2. Fit-out Works: Include when the tenant will be performing initial modifications to the property
3. Operating Hours: Necessary for commercial properties with specific business hours
4. Common Areas: Required for properties in multi-tenant buildings or complexes
5. Assignment and Subletting: Include when transfer rights need to be specifically addressed
6. Force Majeure: Important in regions prone to natural disasters or uncertain circumstances
7. Environmental Compliance: Required for industrial or commercial properties with potential environmental impact
8. Option to Purchase: Include when giving the lessee a future right to purchase the property
1. Property Description: Detailed description of the leased property including floor plans and boundaries
2. Rent Schedule: Detailed breakdown of rent payments, escalations, and other financial terms
3. Condition Report: Documentation of the property's condition at the start of the lease
4. House Rules: Building or property rules and regulations
5. Fit-out Guidelines: Technical specifications and requirements for any permitted modifications
6. Service Charges: Breakdown of service charges and calculation methodology
7. Maintenance Schedule: Details of regular maintenance responsibilities and schedules
8. Required Permits: List of necessary permits and licenses for property use
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Retail
Office Space
Industrial
Hospitality
Healthcare
Education
Manufacturing
Warehousing
Technology
Food & Beverage
Entertainment
Residential
Relevant Teams
Legal
Real Estate
Facilities Management
Operations
Finance
Compliance
Risk Management
Property Management
Business Development
Administrative Services
Relevant Roles
Real Estate Manager
Property Manager
Facilities Manager
Legal Counsel
Commercial Director
Operations Manager
Asset Manager
Business Development Manager
Compliance Officer
Contract Administrator
Chief Financial Officer
Real Estate Director
Leasing Manager
Building Manager
Risk Manager
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