The Property License Agreement serves as a crucial legal instrument in Indian real estate transactions where temporary property usage rights are required without creating a leasehold interest. This document is particularly relevant when businesses or individuals need flexible arrangements for property use, such as temporary office spaces, retail locations, or specific-purpose facilities. The agreement must comply with Indian property laws, including state-specific regulations and local municipal requirements. It typically includes detailed terms about property usage, license fees, maintenance responsibilities, and termination rights. Unlike a lease agreement, a Property License Agreement offers more flexibility in termination and doesn't create an interest in the property, making it preferred for shorter-term or more fluid arrangements. The document is especially important in commercial contexts where businesses need to establish clear boundaries between property access rights and ownership interests.
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1. Parties: Details of the Licensor and Licensee, including full legal names, addresses, and registration details if companies
2. Background: Context of the agreement, brief description of the property, and purpose of the license
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of License: Specific terms of the license grant, including the exact nature of permitted use
5. License Period: Duration of the license, including start date, end date, and any renewal provisions
6. License Fee: Amount, payment schedule, mode of payment, and escalation terms
7. Security Deposit: Amount, payment terms, conditions for refund, and deductions
8. Permitted Use: Detailed description of how the property may be used and any restrictions
9. Licensee's Obligations: Responsibilities of the licensee including maintenance, utilities, compliance with laws
10. Licensor's Obligations: Responsibilities of the licensor including maintenance of structure, insurance, taxes
11. Utilities and Maintenance: Responsibility for utilities, maintenance charges, and related expenses
12. Termination: Grounds for termination, notice periods, and consequences of termination
13. Handover: Conditions and process for property handover at the end of license period
14. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction
15. Notices: Process and addresses for serving notices under the agreement
1. Fit-out Works: Include when licensee is permitted to carry out modifications or installations
2. Signage Rights: Include for commercial properties where external/internal signage is relevant
3. Parking Rights: Include when specific parking spaces are being allocated
4. Common Areas: Include for properties in commercial complexes or multi-unit buildings
5. Sub-licensing: Include if sub-licensing is permitted under specific conditions
6. Force Majeure: Include to address unforeseen circumstances affecting property use
7. Insurance: Include when specific insurance requirements are imposed on either party
8. Environmental Compliance: Include for properties where environmental regulations are significant
9. Property Management Rules: Include when property is part of managed facility
1. Property Description: Detailed description of licensed property including measurements and boundaries
2. Payment Schedule: Detailed breakdown of license fee, maintenance charges, and other payments
3. Inventory List: List of furniture, fixtures, and equipment included in the license
4. House Rules: Building or complex rules and regulations
5. Handover Checklist: Condition of property and items to be checked during handover
6. Fit-out Guidelines: Technical specifications and guidelines for permitted modifications
7. Maintenance Schedule: Schedule of regular maintenance activities and responsibilities
8. Required Permits: List of permits and licenses required for property use
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Commercial Office Space
Retail
Hospitality
Education
Healthcare
Information Technology
Manufacturing
Co-working Spaces
Banking and Financial Services
Telecommunications
Relevant Teams
Legal
Real Estate
Facilities Management
Operations
Finance
Administration
Compliance
Risk Management
Business Development
Property Management
Corporate Services
Relevant Roles
Real Estate Manager
Facilities Manager
Legal Counsel
Property Manager
Operations Director
Chief Financial Officer
Administrative Manager
Compliance Officer
Business Development Manager
Asset Manager
Corporate Real Estate Manager
Property Consultant
Risk Manager
General Counsel
Real Estate Director
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