The License Agreement To Use Property is a crucial legal instrument in the Philippine property market, designed to facilitate the temporary grant of property usage rights without transferring ownership. This document is commonly used when full leasehold rights are not required or when parties seek more flexible arrangements for property utilization. It must comply with the Civil Code of the Philippines, the Property Registration Decree, and relevant local government regulations. The agreement is particularly valuable for businesses seeking temporary use of facilities, landowners granting specific usage rights, or property owners wanting to maintain significant control over their assets while generating income. It typically includes detailed terms about property usage, maintenance responsibilities, payment terms, and compliance requirements specific to Philippine jurisdiction.
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1. Parties: Identifies and provides full details of the licensor and licensee, including registration details for companies
2. Background: Outlines the context of the agreement, confirms licensor's ownership/authority, and states the parties' intentions
3. Definitions: Defines key terms used throughout the agreement, including 'Property', 'Permitted Use', 'License Period', and other relevant terms
4. Grant of License: Specifies the exact nature and scope of the license being granted, including any territorial limitations
5. License Period: Details the duration of the license, including commencement date, end date, and any renewal provisions
6. License Fee: Specifies the amount, payment schedule, and method of payment for the license
7. Permitted Use: Clearly defines how the licensee may use the property and any specific restrictions or limitations
8. Licensee's Obligations: Lists all responsibilities and obligations of the licensee regarding property use, maintenance, and compliance
9. Licensor's Obligations: Details the licensor's commitments and responsibilities throughout the license period
10. Insurance and Liability: Specifies insurance requirements and allocation of risks between parties
11. Termination: Lists circumstances under which either party may terminate the agreement and the consequences of termination
12. Governing Law and Jurisdiction: Specifies Philippine law as governing law and outlines jurisdiction for dispute resolution
13. General Provisions: Includes standard clauses such as force majeure, notices, and entire agreement provisions
1. Security Deposit: Include when a security deposit is required from the licensee
2. Alterations and Improvements: Include when licensee is permitted to make changes to the property
3. Sublicensing Rights: Include when addressing whether the licensee may sublicense the property
4. Intellectual Property Rights: Include when the licensed property includes or involves IP elements
5. Utilities and Services: Include when addressing responsibility for utilities and associated services
6. Environmental Compliance: Include for properties where environmental regulations are relevant
7. Registration Requirements: Include when the license needs to be registered with authorities
8. Exit Clause: Include when early termination options are needed with specific conditions
1. Schedule 1 - Property Description: Detailed description of the property including location, boundaries, and characteristics
2. Schedule 2 - Property Plan: Maps, drawings, or plans showing the licensed property
3. Schedule 3 - Payment Schedule: Detailed breakdown of license fees, payment dates, and payment methods
4. Schedule 4 - Condition Report: Documentation of property condition at commencement of license
5. Schedule 5 - House Rules: If applicable, rules and regulations for property use
6. Appendix A - Required Permits: List of permits and licenses required for property use
7. Appendix B - Insurance Requirements: Detailed insurance specifications and requirements
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