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Licence Agreement To Occupy Property Before Completion Of Purchase for Hong Kong

Licence Agreement To Occupy Property Before Completion Of Purchase Template for Hong Kong

A legal document governed by Hong Kong law that establishes the terms and conditions under which a property buyer can occupy the property before the completion of the purchase transaction. This agreement provides a temporary right of occupation while protecting both parties' interests during the interim period between exchange and completion. It addresses crucial aspects such as occupation fees, utilities, maintenance responsibilities, insurance requirements, and the relationship with the underlying sale and purchase agreement, all within the framework of Hong Kong's property and contract law.

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Licence Agreement To Occupy Property Before Completion Of Purchase

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What is a Licence Agreement To Occupy Property Before Completion Of Purchase?

The Licence Agreement To Occupy Property Before Completion Of Purchase is essential in Hong Kong property transactions where buyers need to occupy the property before the sale completion date. This situation commonly arises when there are delays in mortgage arrangements, documentation, or other practical considerations that prevent immediate completion. The agreement provides a structured framework under Hong Kong law for managing this interim period, protecting both parties' interests while maintaining the distinction between occupation and ownership. It covers critical aspects such as occupation fees, insurance, maintenance, utilities, and the relationship with the main sale agreement. The document is particularly relevant in both residential and commercial property transactions where early access is required but full transfer of ownership is pending.

What sections should be included in a Licence Agreement To Occupy Property Before Completion Of Purchase?

1. Parties: Identification of the Licensor (seller) and Licensee (buyer)

2. Background: Context of the agreement, including reference to the sale and purchase agreement

3. Definitions: Key terms used throughout the agreement

4. Grant of Licence: Terms of the temporary occupation permission

5. Duration: Period of occupation until completion

6. Licence Fee: Amount payable for occupation and payment terms

7. Licensee's Obligations: Responsibilities of the occupier during the licence period

8. Licensor's Obligations: Responsibilities of the property owner during the licence period

9. Utilities and Outgoings: Responsibility for bills and expenses during occupation

10. Insurance: Required insurance coverage during the licence period

11. Termination: Circumstances and process for ending the licence

12. Consequences of Termination: Rights and obligations upon licence end

13. General Provisions: Standard contractual terms including notices, amendments, governing law

What sections are optional to include in a Licence Agreement To Occupy Property Before Completion Of Purchase?

1. Security Deposit: Required when additional security beyond the purchase deposit is needed

2. Maintenance and Repairs: Detailed provisions for older properties or those requiring specific maintenance

3. Building Rules: For properties in managed buildings or estates

4. Alterations: If the licensee wishes to make changes to the property during occupation

5. Access Rights: For properties requiring shared access or where seller needs ongoing access

6. Special Conditions: For unique property features or circumstances

7. Break Clause: When early termination options are required

What schedules should be included in a Licence Agreement To Occupy Property Before Completion Of Purchase?

1. Schedule 1 - Property Details: Detailed description of the property including address and boundaries

2. Schedule 2 - Inventory: List of furniture and items included in the licence

3. Schedule 3 - Condition Report: Documentation of property condition at start of occupation

4. Schedule 4 - House Rules: Building or estate rules if applicable

5. Schedule 5 - Payment Schedule: Detailed breakdown of licence fees and payment dates

6. Appendix A - Sale and Purchase Agreement: Copy or key terms of the underlying sale agreement

7. Appendix B - Property Plans: Floor plans and relevant property drawings

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Document Type

Licensing Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions


































Clauses






























Relevant Industries

Residential Real Estate

Commercial Real Estate

Property Development

Real Estate Investment

Property Management

Legal Services

Banking and Finance

Property Insurance

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Risk Management

Operations

Sales

Contract Administration

Property Services

Transaction Support

Relevant Roles

Property Lawyer

Real Estate Agent

Property Manager

Conveyancing Manager

Legal Counsel

Property Transaction Officer

Compliance Officer

Real Estate Director

Property Investment Manager

Sales Manager

Contract Administrator

Risk Manager

Property Operations Manager

Industries








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