Why do I need a Property Licence Agreement?
Perhaps:
- your business is expanding, and you need extra space but don’t want to commit to a long-term lease, or
- you’re not utilising all the space in your leased property and would like an additional income stream to help cover your costs, or
- you want to set up a shared workspace - these have become popular and can benefit everyone due to their flexibility and opportunity to network and collaborate.
This licence agreement is designed to record an arrangement between a business (known as the licensor) allowing another business (known as the licensee) to share part of their leased commercial space. The licence is suited for short-term arrangements and can be cancelled on one month's notice.
A licence is not a lease and is different to a sublease because the parties share the space and any common facilities, rather than the licensee having an exclusive right to the space (although there may be a designated area for use).
It is essential to clearly document the terms of a property licence to avoid any misunderstandings and ensure it is not treated (for legal purposes) as a lease, which gives rise to specific legal rights and greater security than a licence.
Who’s this Property Licence Agreement for?
Any business owner licensing (or receiving a licence of) part of a commercial premises. This could be spare rooms, unused workshops or warehouse space, or spare office space.
What’s in this Property Licence Agreement?
NZ lawyers have designed this Property Licence for NZ businesses. It is simple, easy to understand, without unnecessary legalese, and fair to both sides.
In the document, the licensor (who is the tenant) licences part of a commercial space to a licensee for its use (which may (or may not) be shared with other tenants, or they might be given a designated area). It includes the key terms of the licence (such as rent, rent reviews, and permitted use), and the licensee agrees to comply with any rules notified by the licensor (or the head landlord) relating to the use of the space. There are optional provisions for a bond.
If you are the licensor, you must check your head lease to see if head landlord consent is required (most leases will require consent).
How long will it take to create my Property Licence Agreement?
Approximately 10 -15 minutes – whenever and wherever you want! During the Q&A you can save your progress to come back later, or repeat the Q&A to change an answer or produce a new version of a document.
What information do I need to complete the Q&A?
- The name and contact details of the licensor and licensee
- Details of the space being licensed (there’s an option to attach a plan), any shared facilities and services provided by the licensor
- Duration, commencement date, expiry date, licence fee, licence fee review dates (and method), permitted use of the space, outgoings,
- Details of any bond and restrictions on the number of occupants
What if I need help?
On Your Terms has teamed up with Luminate Legal to offer its customers the option of obtaining legal advice from a lawyer to provide extra assurance and peace of mind. If you would like to ask a lawyer some quick questions about your document (or your responses to the Q&A), or have your document reviewed/edited by a lawyer, click here to view and select Luminate Legal's packages and fixed-fee pricing exclusively for On Your Terms customers.
What do I do once my Property Licence Agreement is created?
The Property Licence is ready to sign as soon as you have downloaded it. Both parties must sign it to ensure it’s legally enforceable. If you need help with how to sign the Property Licence, read our helpful blog: Who can sign legal documents in New Zealand?
Other helpful information:
- Check out our blogs: Sublease or Property Licence? Commercial lease agreements in New Zealand, How can I get out of my business lease early?
- You may also find these bundles or documents useful for your business: Commercial Sublease Agreement, Deed of Surrender of Lease, Deed of Assignment of Lease, Deed of Variation of Lease and Agreement to Lease
- Check out our FAQs here
If you’re unsure whether this agreement is what you need, reach out to us at hello@onyourterms.co.nz – we’re happy to help!
If you’re not satisfied with your purchase of this product for any reason, let us know why within 10 days of your purchase and we’ll work with you to make sure you’re happy, including giving you a full refund if necessary.
Disclaimer: On Your Terms was created to provide fast, easy and affordable access to legal information and documentation. We are not a law firm and do not provide legal advice. The information and documents we provide are of a general nature, designed for common situations, and may not be suitable for your needs or circumstances. If you need legal advice, we have a network of specialist law firm partners able to help you here.