A License Agreement For Use Of Real Property is a crucial document in Hong Kong's property market, offering a flexible alternative to traditional leases. This agreement type is particularly suitable when temporary or non-exclusive use of property is required, such as for pop-up stores, event spaces, or shared facilities. It maintains the property owner's fundamental control while granting specific usage rights to the licensee. The document must comply with Hong Kong's property laws and regulations, including the Conveyancing and Property Ordinance and relevant common law principles. It typically includes detailed terms about permitted use, duration, fees, maintenance responsibilities, and termination rights, while carefully avoiding creating a landlord-tenant relationship. This agreement type is commonly used in commercial contexts where full leasehold rights are unnecessary or undesirable.
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1. Parties: Identification of the Licensor and Licensee with full legal names and addresses
2. Background: Context of the agreement including property ownership confirmation and purpose of the license
3. Definitions: Key terms used throughout the agreement including Property, Licensed Area, Permitted Use, License Period
4. Grant of License: Express grant of license, clearly stating this is a license not a lease, and defining the scope of permitted use
5. License Period: Duration of the license, including commencement and termination dates, and any renewal options
6. License Fee: Amount payable, payment schedule, method of payment, and consequences of late payment
7. Licensee's Obligations: Core responsibilities including maintenance, compliance with regulations, and restrictions on use
8. Licensor's Rights and Obligations: Including right of entry, provision of services, and maintenance responsibilities
9. Insurance and Liability: Insurance requirements and allocation of risk between parties
10. Termination: Grounds for termination, notice requirements, and consequences of termination
11. General Provisions: Standard clauses including governing law, notices, entire agreement, and amendments
1. Utilities and Services: Include when utilities are separately charged or when specific services are provided
2. Security Deposit: Include when a security deposit is required, specifying amount and terms of return
3. Alterations and Improvements: Include when licensee is permitted to make changes to the licensed area
4. Shared Facilities: Include when license includes use of common areas or shared facilities
5. Assignment and Sublicensing: Include when there's need to explicitly prohibit or permit transfer of rights
6. Force Majeure: Include when specific provisions for unforeseen circumstances are needed
7. Specific Use Restrictions: Include when property has unique features or requirements needing specific restrictions
1. Schedule 1 - Property Description: Detailed description of the licensed property including floor plans and boundaries
2. Schedule 2 - License Fee Schedule: Detailed breakdown of fees, payment dates, and any escalation provisions
3. Schedule 3 - House Rules: Specific rules and regulations governing the use of the property
4. Schedule 4 - Inventory List: List of furniture, equipment or other items included in the license
5. Schedule 5 - Service Level Agreement: Details of any services to be provided by the licensor
6. Appendix A - Plans and Photographs: Visual documentation of the licensed area and its condition
7. Appendix B - Required Permits: Copies of relevant permits or certificates required for the permitted use
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