Draft a Commercial License to Occupy

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Drafting a licence to occupy a commercial property is an immensely important agreement between landlord and tenant - setting out the rights, obligations, and restrictions for both parties in order to protect their interests. From my experience as a highly experienced legal expert I have no hesitation in emphasizing the importance of having a valid agreement in place.

A licence to occupy is an arrangement that formally outlines what each party can and cannot do on the property. It establishes how much rent must be paid, who is responsible for maintenance and repairs, what limitations exist on occupancy or usage of the premises - amongst other things. It also serves to protect both parties: landlords are protected from tenants using the property incorrectly, while tenants are protected from unexpected changes or requirements that might impact their use of the premise.

Such agreements are absolutely essential - without it disputes can arise leading to costly and lengthy litigation. As such, it is important that everyone involved has clarity regarding their rights and responsibilities when entering into this kind of contract. But drafting one can be difficult which is why it’s essential for all parties involved to seek legal advice if they need assistance understanding the details or negotiating terms with one another.

The Genie AI team understands how vital licences-to-occupy are AND we’re here to help people draw up valid agreements that stand up legally - even if you don’t have an account with us! Our open source legal template library contains millions of datapoints teaching our AI exactly what constitutes a market-standard contract; so anyone can access free high quality templates for drawing up these kinds of documents quickly and easily without ever needing to engage with a lawyer at any stage! For additional support on understanding licence-to-occupy contracts simply read on further below where you’ll find step by step guidance plus all information necessary for accessing our template library today!

Definitions (feel free to skip)

Determining: Deciding or ascertaining something.
Relevant: Pertinent or applicable.
Negotiating: Engaging in dialogue to reach an agreement.
Drafting: Preparing a document in a written form.
Reviewing: Examining something in detail.
Obtaining: Acquiring or getting something.
Finalizing: Finalizing something, making it complete and ready to be used.
Filing: Submitting documents to a government or other authority.
Executing: Carrying out or completing an action.

Contents

• Determining the Property
• Researching and Identifying Applicable Laws
• Negotiating the Terms
• Drafting the Agreement
• Reviewing the Agreement
• Obtaining Legal Advice
• Finalizing the Agreement
• Signing the Agreement
• Filing the Agreement
• Executing the Agreement

Get started

Determining the Property

• Contact the property owner and confirm if the property is available for lease
• Research the ownership and zoning laws relevant to the property
• Determine the current use of the property and any restrictions associated with it
• Obtain any necessary legal documents such as title deeds, survey plans, and certificates of occupancy
• Verify that the property has access to utilities and other necessary services

When you have completed the research and gathered the necessary documents, you will have determined the property and be ready to move on to the next step: researching and identifying applicable laws.

Researching and Identifying Applicable Laws

• Research applicable local and state laws that govern the rental or leasing of commercial properties.
• Make sure to look into any zoning laws, business license requirements, and tenant-landlord regulations.
• Consult with a real estate attorney to help you identify any applicable laws that may affect the license to occupy.
• Once you’ve identified all applicable laws, you can check this off your list and move on to the next step.

Negotiating the Terms

• Identify the parties involved in the agreement.
• Consider the scope of the license, including the length of the agreement, the geographic scope, and any restrictions on the licensee’s use of the property.
• Negotiate and agree upon the terms of the license, including the compensation for the licensee and any additional obligations.
• Draft a term sheet outlining the negotiated terms.

You can check this off your list when you have an agreed-upon term sheet and have completed the drafting process.

Drafting the Agreement

• Gather the terms of the agreement that you have already negotiated
• Draft a formal agreement that includes all of the terms agreed upon
• Ensure that the agreement is legally binding and covers all of the parties’ rights and responsibilities
• Have both parties sign the agreement
• Once both parties have signed the agreement, your commercial license to occupy is complete!

Reviewing the Agreement

• Read through the agreement, taking note of any potential areas of concern
• Identify any necessary changes as well as any language that needs to be clarified or added to the agreement
• Make sure that the agreement accurately reflects the terms of the lease, including any necessary revisions
• Determine if any of the provisions in the agreement are in conflict with the terms of the lease
• Once you have reviewed and revised the agreement, you can move on to the next step in the process, obtaining legal advice.

Obtaining Legal Advice

• Research and secure legal advice from a qualified lawyer to ensure the commercial license to occupy is legally sound
• Ask the lawyer questions to ensure that all aspects of the agreement are legally binding
• Consult the lawyer on any amendments needed to the agreement
• Make the necessary amendments to the agreement suggested by the lawyer
• Once the lawyer has reviewed the agreement and it is legally sound, you can check this off your list and move on to the next step.

Finalizing the Agreement

• Review the proposed commercial license to occupy with both parties to ensure all details are agreed upon
• If any changes are requested, modify the agreement and re-send for review and approval
• Make sure both parties sign the agreement, and if necessary, have the agreement notarized
• When both parties have signed the agreement, make sure to keep a copy for each party for their records
• You will know that this step is complete when both parties have signed and returned the agreement.

Signing the Agreement

• Make sure each party has an attorney present to review the terms.
• Have both parties sign and date the agreement.
• Have a witness to the signing (if required by local law).
• Exchange copies of the signed agreement.

Once all of these tasks have been completed, you can move on to the next step of filing the agreement.

Filing the Agreement

• File the agreement with the appropriate governing body, such as the city’s zoning board.
• Make sure to include all documents, such as proofs of residence, signed copies of the agreement, photos of the property, and other evidence.
• Verify that the documents are complete and accurately reflect the agreement.
• Once all the documents are submitted, you can check this step off your list and move on to the next step.

Executing the Agreement

• Determine the method of execution that is acceptable to the two parties involved in the agreement, such as signing the agreement in person, via email or snail mail, or through an electronic signature
• If the agreement is to be signed in person, arrange for the two parties to meet and sign the agreement in the presence of a witness
• If the agreement is to be signed via email or snail mail, both parties must mail a signed copy of the agreement to the other party
• If the agreement is to be signed through an electronic signature, both parties must download and install the appropriate software and sign the document electronically
• When both parties have signed the agreement, each will receive a copy of the executed agreement
• When both parties have signed the agreement, they should check that the agreement is properly dated, executed, and witnessed (if applicable)
• When both parties have confirmed that the agreement is properly executed, the agreement is considered binding and each party should keep a copy of the agreement on file for future reference
• How you’ll know when you can check this off your list and move on to the next step: When both parties have confirmed that the agreement is properly executed and have both received a copy of the signed agreement.

FAQ:

Q: What is a commercial license to occupy?

Asked by Ashley on 18th April 2022.
A: A commercial license to occupy is a legal agreement between a landlord and tenant which grants the tenant the right to occupy a property for business purposes. This agreement typically covers things such as the length of the lease, rent payments, and other conditions that the tenant must abide by. It also outlines the rights and responsibilities of both parties. The license to occupy is an important document that should be drafted carefully in order to ensure all parties are protected.

Q: What factors should I consider when drafting a commercial license to occupy?

Asked by Anthony on 25th June 2022.
A: When drafting a commercial license to occupy there are several factors that should be considered. Firstly, you need to consider the type of property you are renting, whether it is for retail, office or industrial use. Secondly, you need to think about the length of the lease, the rent amount and any other terms and conditions you wish to impose. Thirdly, it is important to consider the rights and obligations of both parties, including provisions for maintenance, repair and access. Finally, it is important to ensure that any restrictions or covenants are clearly set out in the agreement.

Q: How do jurisdictional laws affect my commercial license to occupy?

Asked by Emma on 14th August 2022.
A: Depending on where your property is located, different jurisdictional laws may affect your commercial license to occupy. It is important to understand any relevant local or national laws that may apply and ensure they are included in your agreement. Additionally, if you are entering into a cross-border agreement then you may need to consider any legal implications of this too. It is important to seek advice from a qualified lawyer who can help you understand any jurisdictional laws and ensure your agreement meets all legal requirements.

Q: Are there any special considerations when drafting a SaaS commercial license to occupy?

Asked by Jacob on 19th October 2022.
A: Yes, when drafting a SaaS (Software as a Service) commercial license to occupy there are certain factors that need to be taken into account in order to ensure all parties are protected. Firstly, it is important to ensure that any intellectual property rights related to the software are included in the agreement. Secondly, you need to consider how payment will be made and under what terms and conditions this will occur. Finally, it is important to consider how data will be stored and how access will be granted in order for use of the software.

Q: What additional considerations do I need for a B2B commercial license?

Asked by Michael on 10th December 2022.
A: When drafting a B2B (Business-to-Business) commercial license there are various considerations that should be taken into account in order for both parties’ interests and rights to be protected. Firstly, it is important to consider liability issues such as warranties or indemnification clauses which can provide protection against damages incurred through negligence or breach of contract. Secondly, you need to think about intellectual property ownership or licensing rights so that both parties understand their rights in relation to any IP used as part of the agreement. Finally, you should also include provisions concerning confidentiality and dispute resolution so both parties know how issues should be handled if they arise in future.

Q: Do I need different agreements if I am operating across multiple jurisdictions?

Asked by Joshua on 28th February 2022.
A: If you are operating across multiple jurisdictions then it is likely that different agreements will be required in order for your business operations to comply with local laws in each jurisdiction where necessary. It is important that each agreement includes language that acknowledges differences between jurisdictions such as applicable tax laws and other relevant regulations so that all parties understand their obligations completely. Additionally, it may also be necessary for certain amendments or additional provisions to be included in each agreement so as not create conflicts between them or create any legal uncertainty for either party going forward.

Example dispute

Suing a Landlord for Breach of a Licence to Occupy

• The plaintiff must show that the landlord has breached the terms of the licence. Examples of such a breach can include failure to maintain the premises in a habitable condition, failure to provide essential services, failure to protect the tenant from unlawful eviction, or failure to comply with health and safety regulations.
• The plaintiff must also prove that they have suffered an injury as a result of the breach. This can include physical damage, financial loss, or emotional distress.
• The plaintiff must also prove that the landlord had knowledge of the breach at the time it occurred, and that the landlord failed to take reasonable steps to remedy the breach.
• If the plaintiff is successful, they may be entitled to damages for their losses, as well as costs for any legal or other professional fees associated with bringing the action.
• Settlement of the dispute may also be possible, and the parties may agree to a payment plan or other terms in order to resolve the dispute out of court.

Templates available (free to use)

Short Term Licence To Occupy Non Exclusive

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