The office sharing agreement is not a rental agreement, but a contractual license. The main difference is that a license does not grant rights on a defined and fixed scope. This agreement provides a specified number of desktops to the shared user, but does not specify their location. To benefit from a license agreement, the owner must ensure that his agreement with the potential user of the premises is indeed a license and not a lease. This is not necessarily an easy task. If you simply refer to the Agreement as a “License”, this will not be the case. Whether an agreement is considered a licence rather than a lease depends on the presence or absence of the three essential characteristics of a real estate licence in the contract: (1) a clause that allows the licensor to revoke “at will”; (2) the retention of absolute control on the premises by the licensor; and (3) Licensor shall provide Licensee with all essential services necessary for Licensee`s Authorized Use of the Premises. An office sharing agreement is an agreement between an office space owner and another company. It can be used if the space provider owns the property or has a rental of the property.

A license subjects you to certain obligations and gives your landlord certain rights that are not generally known. This legal document template is used to create a license for business premises. A licence is a relatively flexible and short-term agreement of less than six months to which the licensee has no rights. You do not need to attach a plan to the agreement, but if it is attached, it can only display the original location of the workstations. You must reserve the right to change the location of workplaces to ensure that the agreement is not construed as a lease and not as a license. Owners must also make judgments about the commercial feasibility of acquiring licensees who are willing to accept license agreements with “at will” opt-out clauses. The willingness of potential tenant-licensees to sign such agreements may depend on the type of space the owner makes available for licensed use, e.B. whether the licensed space is a warehouse, a multi-user office suite, or a simple storage space. To attract licensees who are concerned about making a significant investment in the revocable licensed space, owners may create new financial incentives or incorporate a mechanism into the agreement to compensate a non-defaulting licensee for the remaining undepreciated value of their investment if the licensor invokes the “at will” clause of the agreement. Flexibility – Short-term flexible licensing agreements are the norm, usually 12 months, but can be shorter. This incentivizes small, growing businesses that may not have commercial security or financial strength to commit to a 5-year lease and all the related responsibilities.

It`s also much easier to grow quickly or contract in or out of space, which can have a huge impact on cost savings for businesses. Force majeure is a completely different concept. Its applicability depends on whether the contract in question contains an express provision on force majeure. Service contracts often contain provisions that address what happens in circumstances where an operator is unable to provide the services due to an unforeseeable factual circumstance, whether or not it is a “force majeure event”. The contractual provisions that determine what happens in such a scenario prevail. These clauses may indicate a period prior to the date of entry into force of the termination rights during which a User may still need to make payments to the Operator. From an occupant`s point of view, the absence of specific provisions on force majeure could therefore be a blessing in disguise. These are leases that are acquired and managed by a third party specifically for you, usually with a 2-3 year lease, but this can be longer term. The goal is to balance the flexibility of an equipped office with the security and control of a leased option with no upfront investment or unknown exit costs at the end of the lease. So you are the tenant and there is a part of your office that remains there unused. Why not rent and make money like thousands of other business owners? At present, real estate licensing agreements seem to be mainly used by authorized owners to short-term users: office spaces, laundry rooms, certain types of storage rooms and kiosks in shopping malls.

It is clear that there is a market for such agreements. Whether there is a market for real estate licensing agreements for other types of occupation may not be so obvious, but given the need for landlords to be freed from the onerous burdens and frustrations of traditional landlord-tenant disputes, such an agreement can be useful for the right business plan. In particular, in the event that the occupant does not enter the closed offices or cannot occupy the offices in accordance with the legal provisions on social distancing, the right to the conclusion of a contract may be claimed. Frustration exists if something happened after the conclusion of the contract that makes it impossible to perform the contract or fundamentally distinguishes performance from what was originally agreed. The frustrating event must be so fundamental that it goes to the root of the contract and goes completely beyond what was contemplated when the parties entered into the contract. Our comments on the specific clauses of the Agreement are set out below. Frustration is more likely to apply to service office contracts, where the duration of the closure lasts for the rest of the contract period. This means that the longer the forced suspension of non-essential activities lasts, the better reason users will have to argue that their service desk contracts have become frustrated. A license is a legal agreement with the owner. The agreement should be short, simple and written in plain English, but you should always check all the details thoroughly. Even real estate licenses agreed with local authorities and commercial agencies need to be reviewed.

You need to determine how much the divider will have to pay for the storage space. Under the terms of the agreement, the shareholder must pay the VAT due on the royalty. The license fee can be a weekly or monthly issue and the agreement covers the situation where the agreement starts in the middle of a month. For example, if the shareholder withdrew on March 15, the payment is half the monthly number for the period ending March 31, with the next monthly payment due on April 1. To rent vacant offices, companies use a sublease or license agreement. So, what are the main differences between an office lease and an office license? Self-help is not beyond the reach of New York owners who reserve the right to use it in their leases. However, courts are generally hostile to a landlord`s use of self-help and will not approve its use if the rental terms are unclear or if there is a factual issue about whether or not the lease expires. In addition, under the New York Real Estate Actions and Procedures Act (“RPAPL”) § 853, if a tenant is forcibly or unlawfully excluded from the real estate, the tenant may receive a triple of damages from the landlord and may also be reinstated if excluded before the end of the rental period. Only if a court finds that restoring the tenant`s property would be “unnecessary” because the landlord will prevail in a summary proceeding against the tenant`s exclusion is it unlikely that the court will order the tenant to restore the premises. As with many scenarios right now, the advice is to stay in touch with your stakeholders, whether they are customers, employees, office service providers or suppliers. These are unexplored times and suppliers and office users will feel the crisis as regular cash flows dry up.

Providers will no doubt talk to their owners about an agreement on renting their premises – and users will therefore have to wait until these agreements have been concluded before they can conclude a transaction. Any agreement reached must be documented in writing and, if in doubt, talk to a lawyer. In the short term, however, users should pause under short office contracts and review their payment obligations and see if there might be grounds for legitimate withholding payment in their particular situation. Rental of offices and rental of office space. Your lease agreement will likely stipulate that the landlord`s consent must be obtained prior to subletting. And although licenses and leases are different, we recommend that you write to your landlord in both cases. Privacy – Serviced office spaces are shared, which means that even if you have your own office, you`re still in a busy area with a high density of tenants, which raises serious privacy concerns and a challenge for some companies to protect confidential information. Other terms you need to pay attention to are so-called force majeure clauses.

Such a clause may excuse compliance with contractual obligations in the event of an event beyond the control of the parties. Particular attention should be paid if such a clause is formulated in such a way that only one party is excused, in particular if the terms and conditions of those parties are invoked. Such a clause may not be enforceable because it is inappropriate and lends weight to the argument that the clause should be extended to both parties. .