Document background
The Licence Agreement Tenancy is a specialized legal instrument used in Malaysia when parties wish to create a more flexible arrangement than a traditional lease. This document is particularly suitable for situations requiring shorter terms, greater control over property usage, or where the owner needs to maintain direct access and management rights. It's commonly used in commercial settings such as serviced offices, co-working spaces, and temporary retail locations, as well as in residential contexts where traditional tenancy might not be appropriate. The agreement must comply with Malaysian property and contract law, including the National Land Code 1965 and Contracts Act 1950, while providing clear terms for occupation, payment, and usage rights. This type of agreement offers advantages in terms of easier termination and greater control for the licensor, while still providing adequate protection for the licensee's occupation rights.
