The License Agreement To Occupy Property is commonly used in Canadian business contexts where traditional lease arrangements are either unsuitable or undesirable. This document is particularly valuable for situations requiring flexible, temporary, or specific-purpose property occupation, such as pop-up stores, temporary offices, or shared workspace arrangements. The agreement carefully balances the licensor's need to maintain property control with the licensee's need for secure occupation rights, while ensuring compliance with Canadian federal and provincial property laws. It typically includes detailed provisions for property use, payment terms, maintenance responsibilities, insurance requirements, and termination rights, while explicitly avoiding the creation of a lease or any interest in the property.
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1. Parties: Identification of the Licensor (property owner/controller) and Licensee (occupier)
2. Background: Context of the agreement and confirmation that this is a license to occupy, not a lease
3. Definitions: Key terms used throughout the agreement including Property, License Period, License Fee, Permitted Use
4. Grant of License: Express terms of the license grant, including purpose and scope of permitted occupation
5. License Period: Duration of the license, including start and end dates, and any renewal provisions
6. License Fee: Amount payable, payment terms, method of payment, and review mechanisms
7. Licensee Obligations: Core responsibilities including maintenance, conduct, compliance with laws, and property care
8. Licensor Obligations: Responsibilities of the property owner including access, maintenance of structure, insurance
9. Insurance and Liability: Insurance requirements and allocation of risk between parties
10. Property Access and Security: Terms regarding access, keys, security measures, and Licensor's right of entry
11. Termination: Circumstances allowing termination, notice requirements, and consequences of termination
12. Notices: How formal communications between parties should be made and delivered
13. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and amendments
1. Shared Facilities: Details of shared spaces and their use when property includes common areas
2. Utilities and Services: Responsibility for utilities when these are separately charged or managed
3. Alterations: Terms for making changes to the property, if permitted
4. Assignment and Sublicensing: Whether and how the license can be transferred to others
5. Environmental Matters: Environmental obligations when property use involves potential environmental impacts
6. Operating Hours: Specific times of access when occupation is limited to certain hours
7. Parking: Parking arrangements when specific parking rights are included
8. Signage: Terms for displaying signs when relevant to commercial occupation
9. Force Majeure: Provisions for unforeseen circumstances preventing occupation
1. Property Description: Detailed description of the licensed property including floor plans and boundaries
2. Inventory: List of any furniture, equipment or fixtures included in the license
3. Building Rules: Specific rules and regulations governing the use of the property
4. Service Level Agreement: Details of any services provided by the Licensor
5. Fee Schedule: Detailed breakdown of license fee and any additional charges
6. Condition Report: Documentation of property condition at commencement of license
7. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements
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