§ 33.04 Form: Limited Purpose License ("Early Access to Space")

• Jurisdiction: United States
• Publication year: 2022

§ 33.04 Form: Limited Purpose License ("Early Access to Space")

In certain instances, a tenant and landlord may seek a license agreement in conjunction with a leasing arrangement to accommodate special arrangements between the parties. One instance is when the tenant may want to enter the premises early to inspect or do construction in the premises. In the limited purpose license that follows, the parties are already parties to a lease for space in the building. The license arises because the tenant under the lease (here, the licensee) wants to gain early access to an expansion space that it will be taking at a later date to get a start on construction and fit up before the proposed expansion term begins.

Why not just dispense with a license and just add the construction period to the expansion premises term? As the reader can see going through the following license, the tenant and landlord have not finalized their negotiations for the expansion space. However, there is a reasonable amount of certainty that the tenant will take the space but wants to have it in time to coincide with its renewal term of other occupancy needs. Given the timing of the negotiations, the desired occupancy date will not be met unless the parties agree to allow the tenant early access to the space to begin demolition and construction. The downside to such an arrangement is addressed in the license, that is, the licensee will be required to restore the space to its original condition should the parties fail to conclude their extension agreement. Meanwhile, the licensee is required to indemnify the licensor from any injuries and damages and to maintain necessary insurance for any expected construction injuries and ordinary losses or claims during the licensee's use and occupancy of the space while negotiations conclude.

This type of arrangement can work well where the tenant already has a stake in the building, the affected space is not readily leaseable to any other tenant and the parties have a high degree of certainty in concluding the lease negotiations that overlay the licensing arrangement.

Limited Purpose License Agreement
This Agreement entered this ___ day

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