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netlawman05   , 42


What Is A License To Occupy Agreement And How Do I Use It For A Room?

5761909758018537368.jpgA license to occupy is a type of commercial lease agreement which basically provides/grants a license to undertake a living arrangement that is different from a tenancy. Under this license, a landlord gives a person permission to use a site or property or part of a property, for example a room in a house or in an office. However, the license allows the landlord to revoke the license at any time and regain possession of the occupied property under the license.

Understanding Commercial Lease Agreements
There are two main types of lease agreement, commercial lease and residential lease, are very different in scope. Legally, the main difference is that commercial leases are governed by the PROPERTY LAW ACT 1952.

Landlords prefer a customised commercial lease as appropriate to their specific situation. They do not opt for a standard form or agreement as in other situations. And so, a careful examination of each and every license to occupy document will be beneficial to you in the long run.

Legal Viability and Implementation of A License To Occupy Document
It is a legally binding contract, and a good deal of money is usually at stake. They are also subject to exhaustive negotiations between the parties to the license, mainly due to property/space extensions and other special features required for the purpose of occupying a room or property space.

If you own a property and intend to rent out a part of your home to a tenant, then you will need to understand the uniqueness of your legal situation, which is quite different than how it applies to Assured and Assured Shorthold Tenancies.

Format and Structure of a License to Occupy Document
A License To Occupy agreement usually implies that a tenant will use the property or any parts of it without having exclusivity over the space. And even though it will not be a standard tenancy agreement, the agreement should still be signed as the law will treat it as a legally binding agreement with the tenant.

It specifies that you, as the landlord, maintain the legal right to unrestricted access to the occupant's room, whether or not a situation calls for it.

5761909954187490964.jpgA License to Occupy may also replace any other type of tenancy agreements. For example, in a converted apartment house, you may convert your house into two separate flats, with one occupied another person. In this case, you basically not sharing any portion of the accommodation with the tenant, and so, the tenancy will still be legally seen as a license and not an assured or Assured Shorthold Tenancy. The same may be applied to a case where you are letting out a room of the flat in which you live in, even if the room is in an apartment building block.

Application And Features Of A License To Occupy From Net Lawman


  • Not suitable for a residential letting
  • It provides flexibility and is practical
  • Comprehensive Explanatory notes to guide you


  • Details of the parties to the license
  • Details of the Property
  • Licence Fee details
  • Payment provisions
  • Other restrictive and protective covenants

5761910042610315808.jpgTo keep yourself and your property protected, Net Lawman New Zealand provides professionally drafted License to Occupy templates and documents for commercial leases. All these documents come with comprehensive notes to help you get through the troubles of drafting a professionally reviewed document.

Net Lawman New Zealand is your single source for legal documents that are specific to your situation. All documents are drafted in plain English and are real law in practice.