The Occupancy License Agreement is a crucial document used in Saudi Arabia when a property owner grants another party the right to occupy and use a specific property without creating a traditional landlord-tenant relationship. This document is particularly relevant in commercial contexts where flexibility is needed, such as shared workspaces, temporary commercial installations, or short-term business operations. The agreement must comply with Saudi Arabian regulations, including Municipal Affairs requirements, building codes, and Sharia law principles. It typically includes detailed provisions about permitted activities, occupancy periods, fee structures, and compliance obligations. This type of agreement is increasingly important in Saudi Arabia's evolving commercial property market, especially with the growth of flexible workspace solutions and the implementation of Vision 2030 economic initiatives.
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1. Parties: Identification of the Licensor and Licensee, including full legal names and registration details
2. Background: Context of the agreement and brief description of the property
3. Definitions: Key terms used throughout the agreement
4. Grant of License: Specific terms of the occupancy license, including purpose and scope
5. Term and Renewal: Duration of the license and renewal provisions
6. License Fee: Payment terms, amounts, and payment schedule
7. Permitted Use: Specific allowed uses of the property under the license
8. Licensee Obligations: Key responsibilities of the occupant including maintenance, compliance with laws
9. Licensor Obligations: Responsibilities of the property owner
10. Compliance: Requirements for regulatory compliance, including Saudi regulations and Sharia principles
11. Insurance and Liability: Insurance requirements and allocation of risks
12. Termination: Grounds and process for ending the agreement
13. Governing Law: Confirmation of Saudi law application and jurisdiction
14. Notices: Communication procedures between parties
15. General Provisions: Standard boilerplate clauses including force majeure, severability
1. Utilities and Services: Include when utilities are separately charged or managed
2. Alterations and Improvements: Include when licensee is permitted to make changes to the space
3. Security Deposit: Include when a deposit is required
4. Assignment and Sublicensing: Include when transfer rights need to be addressed
5. Dispute Resolution: Include when specific arbitration or mediation procedures are required
6. Religious Observance: Include when property use involves religious considerations
7. Environmental Compliance: Include for properties with specific environmental requirements
1. Property Description: Detailed description of licensed premises including floor plans
2. License Fee Schedule: Detailed breakdown of fees, payment dates, and calculation methods
3. Permitted Use Details: Specific listing of allowed activities and restrictions
4. Maintenance Schedule: Breakdown of maintenance responsibilities between parties
5. Building Rules and Regulations: Specific rules governing the use of the property
6. Safety and Emergency Procedures: Required safety protocols and emergency contacts
7. Required Permits and Licenses: List of necessary governmental approvals and licenses
8. Condition Report: Initial condition of the property at time of license grant
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Retail
Commercial Office
Industrial
Hospitality
Healthcare
Education
Technology
Professional Services
Manufacturing
Logistics
Banking and Finance
Relevant Teams
Legal
Real Estate
Facilities Management
Operations
Administration
Risk and Compliance
Corporate Services
Property Management
Business Development
Asset Management
Relevant Roles
Legal Counsel
Property Manager
Facility Manager
Real Estate Director
Operations Manager
Compliance Officer
Business Development Manager
Corporate Services Manager
Administrative Director
Commercial Manager
Risk Manager
General Counsel
Leasing Manager
Asset Manager
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