A real estate license agreement is a legally binding contract between two parties that grants one party access to another’s Property for a specific purpose. The PandaDoc Real Estate License Agreement Template helps you easily create a customized agreement that outlines the terms and conditions for both parties.
This Real Estate License Agreement (the "Agreement") is entered into as of (state the date) by and between [Licensor.FirstName] [Licensor.LastName] (the "Licensor") and [Licensee.FirstName] [Licensee.LastName] (the "Licensee"), referred to herein collectively as the "Parties."
It’s always good to begin any written agreement by reminding all parties of the reason why the document is necessary. It will erase confusion and make the assimilation and interpretation of the document much easier.
This Agreement aims to grant the Licensee a non-exclusive, limited license to use the real estate owned by the Licensor for residential purposes or business activities.
This Agreement constitutes the entire Agreement between the parties and supersedes any prior understanding or Agreement, whether written or oral, concerning the subject matter of this Agreement.
When specifying which rights you grant to your Licensee, be as detailed as possible. It will help you to avoid any potential misunderstandings or miscommunications.
3.1 A non-exclusive, limited right and license, without transfer of title or proprietary interest in the Property, to use the real estate located at (state the address) (the "Property") for residential purposes or business activities.
3.2 The right to enter the Property and use it for the agreed-upon purpose.
3.3 The right to make improvements on the Property, including any necessary repairs.
3.4 The right to sublet a portion of the Property or assign parts of the Agreement.
3.5 The right to install critical mechanical, electrical and plumbing systems.
3.6 The right to make changes to the interior or exterior of the Property, provided such changes do not damage or devalue the Property.
3.7 The right to install signage on the Property under local ordinances.
3.8 The right to advertise space availability at the Property for rental purposes.
3.9 The right to use standard amenities and services such as a pool or parking lot.
3.10 The right to access the Property and related facilities at reasonable times during regular business hours.
3.11 The right to use the Property for other lawful activities, provided such actions do not conflict with any local laws or regulations.
3.12 The Licensor reserves all other rights related to the Property.
It’s common for parties to try to transfer their rights or responsibilities under a contract to someone else. An excellent way to keep control of the situation is to specify that any transfer must be approved by all parties and in writing.
4.1.1 This Agreement, and all rights granted hereunder, are transferable only with the written permission of both parties.
4.1.2 If the Licensee transfers the Agreement without notifying the Licensor in writing and providing the Licensor with a copy of the transfer agreement, the Licensor shall have the right to terminate this Agreement and demand payment of any unpaid rent.
4.2.1 The Licensee is responsible for any repairs and maintenance required during the term of this Agreement.
4.2.2 The Licensor warrants that the Property is free from any encumbrances and that the Licensee has a right to use the Property as stated herein.
4.2.3 The Licensor makes no other warranty, expressed or implied, regarding any aspect of the Property.