The License Rental Agreement serves as a crucial legal instrument in the Indian real estate market, providing a flexible alternative to traditional lease arrangements. This document type is particularly useful when property owners wish to retain greater control over the property while granting occupancy rights to users. Under Indian law, a license creates no interest in the property, unlike a lease, making it preferable for temporary or conditional arrangements. The agreement typically covers commercial terms, permitted use, duration, payment schedules, and operational guidelines, while ensuring compliance with the Transfer of Property Act, 1882, and state-specific property laws. It's commonly used for commercial spaces, co-working facilities, and short-term occupancy arrangements where the licensor wishes to maintain ultimate control over the property.
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1. Parties: Identification and details of the Licensor and Licensee
2. Background: Context of the agreement and brief description of the property and intended use
3. Definitions: Key terms used throughout the agreement
4. Grant of License: Specific terms of the license grant and permitted use of the property
5. Duration: Term of the license, including start date, end date, and any renewal options
6. License Fee and Deposits: Payment terms, security deposit, maintenance charges, and utilities
7. Obligations of the Licensor: Responsibilities and commitments of the property owner
8. Obligations of the Licensee: Rules, restrictions, and responsibilities of the occupant
9. Maintenance and Repairs: Responsibilities for property maintenance and repairs
10. Termination: Conditions and process for early termination
11. Insurance: Required insurance coverage and responsibilities
12. Governing Law and Jurisdiction: Applicable law and courts for dispute resolution
1. Fit-out Works: Used when the licensee is permitted to make modifications to the property
2. Sublicensing: Include when sublicensing is permitted, specifying terms and conditions
3. Force Majeure: Include for protection against unforeseen circumstances
4. Environmental Compliance: Required for properties where environmental regulations are relevant
5. Operating Hours: Include for commercial properties with specific operating time restrictions
6. Signage Rights: Include when dealing with commercial properties where signage is relevant
7. Intellectual Property: Include when the license involves use of any branding or IP rights
1. Property Details: Detailed description of the licensed property including floor plans and measurements
2. Payment Schedule: Detailed breakdown of all payments, including license fee, maintenance charges, and utilities
3. Inventory List: List of furniture, fixtures, and equipment included in the license
4. House Rules: Detailed rules and regulations for property use
5. Maintenance Schedule: Schedule of regular maintenance activities and responsibilities
6. Form of Bank Guarantee: Template for bank guarantee if required as security
7. Handover Protocol: Procedure and checklist for property handover at start and end of term
Authors
Relevant legal definitions
Clauses
Relevant Industries
Commercial Real Estate
Retail
Information Technology
Co-working Spaces
Healthcare
Education
Hospitality
Manufacturing
Warehousing
Professional Services
Relevant Teams
Legal
Facilities Management
Real Estate
Operations
Finance
Administration
Compliance
Property Management
Business Development
Risk Management
Relevant Roles
Facilities Manager
Real Estate Manager
Legal Counsel
Property Manager
Operations Director
Commercial Director
Chief Financial Officer
Compliance Officer
Business Development Manager
Administrative Manager
Real Estate Agent
Property Consultant
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