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Lease And Licence Agreement Template for Malaysia

This document is a comprehensive legal agreement governed by Malaysian law that combines both lease and licensing elements, typically used for commercial property arrangements. It covers the rental of physical space while also addressing any associated licenses for facilities, equipment, or intellectual property use. The agreement is structured to comply with Malaysian property and contract law, including the National Land Code 1965 and Contracts Act 1950, and includes provisions for rent, maintenance, utilities, and specific use conditions. It also addresses matters such as security deposits, insurance requirements, and termination procedures, all within the Malaysian legal framework.

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What is a Lease And Licence Agreement?

The Lease and Licence Agreement is a crucial document in Malaysian commercial property transactions, designed to address both the physical occupation of space and any associated usage rights. This document is particularly relevant when a tenant requires not just the premises but also specific rights to use facilities, equipment, or intellectual property associated with the property. The agreement must comply with Malaysian property law, particularly the National Land Code 1965 and relevant state enactments. It typically includes detailed provisions about property use, maintenance responsibilities, payment terms, and conditions for both the lease and license components. This type of agreement is commonly used in commercial complexes, retail spaces, and industrial facilities where additional rights beyond mere occupation are necessary for the tenant's business operations.

What sections should be included in a Lease And Licence Agreement?

1. Parties: Identification of the lessor/licensor and lessee/licensee with full legal names and registration details

2. Background: Context of the agreement including property details and purpose of lease/licence

3. Definitions: Definitions of key terms used throughout the agreement

4. Demise and Grant of Licence: Specific details of the property being leased and rights being licensed

5. Term and Renewal: Duration of lease/licence and renewal provisions

6. Rent and Licence Fee: Payment terms, amounts, and review mechanisms

7. Security Deposit: Details of security deposit amount, payment, and terms of refund

8. Utility Charges: Responsibility for utilities and payment mechanisms

9. Use of Premises: Permitted use and restrictions on property usage

10. Maintenance and Repairs: Responsibilities for maintenance, repairs, and upkeep

11. Insurance: Required insurance coverage and responsibilities

12. Assignment and Subletting: Restrictions on transfer of rights

13. Termination: Grounds and process for termination

14. Yielding Up: Conditions for returning the property

15. Governing Law: Confirmation of Malaysian law application and jurisdiction

16. Notices: Process for formal communications between parties

What sections are optional to include in a Lease And Licence Agreement?

1. Renovation and Alterations: Used when tenant is permitted to make modifications to the premises

2. Service Charge: Required for properties in managed buildings or complexes

3. Option to Purchase: Included when tenant is given right to purchase the property

4. Break Clause: Early termination provisions if agreed by parties

5. Quiet Enjoyment: Additional tenant protections if required

6. Force Majeure: Provisions for unforeseen circumstances affecting performance

7. Green Lease Provisions: Environmental and sustainability requirements if applicable

8. Special Use Conditions: For properties with specific usage requirements or restrictions

What schedules should be included in a Lease And Licence Agreement?

1. Schedule 1 - Property Details: Detailed description of property including floor plans and boundaries

2. Schedule 2 - Rent and Payment Schedule: Detailed breakdown of rent, payment dates, and escalation

3. Schedule 3 - Facility Rules: Rules and regulations for property use and common areas

4. Schedule 4 - Inventory List: List of fixtures, fittings, and furniture included in lease

5. Schedule 5 - Service Level Agreement: Details of services provided by landlord if applicable

6. Schedule 6 - Permitted Alterations: Specific alterations allowed and conditions

7. Appendix A - Form of Notice: Standard templates for various notices under the agreement

8. Appendix B - Handover Form: Property condition checklist for move-in and move-out

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

Jurisdiction

Malaysia

Document Type

License Agreement

Sector

IP

Cost

Free to use

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