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Shared Space Licence Agreement

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The „Operator/Licensor“ is the party that grants the right to share office space. The „Customer/Licensee“ is the person or company that shares the office space. If there is more than one party, each party must be appointed to ensure that it is jointly and severally liable under the terms of the agreement. There can be a maximum of four parties to an agreement. 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. If you are renting the property in question and you are not the owner, you should carefully look for clauses that could prevent or restrict the sharing of offices with another company or entity. If an owner`s consent is required, it must be obtained before entering into an agreement. Typically, a common room layout takes the form of a large space in an office building, divided into booths, conference rooms, offices, and auxiliary rooms (for example.

B, a cafeteria or news center) shared by multiple users from different organizations. Users are assigned a certain amount of workspace in the larger common space, but the room is usually not demolished separately (that is, there are no lockable walls or doors separating one user`s room from another`s). The space is usually fully furnished and operational, so all a user needs to do to start working in the room is sit back and plug in their laptop. The contracts that govern shared space agreements usually take the form of a license agreement (if not in the name, at least substantially) that is legally different from a lease. A lease is subject to the Real Estate and Landlord/Tenant Act and is usually a stricter and more involved document. Under a lease, the tenant receives a real estate interest in the premises for the duration specified in the lease and receives the benefit of the landlord/tenant`s right in the jurisdiction in which the property is located. In general, under a lease, the landlord can only evict a tenant before the end of the tenancy period in accordance with the default and recourse provisions of the lease or through an eviction procedure, which can be a lengthy process. Finally, since a lease is usually a significant commitment and investment, landlords often impose strict underwriting requirements on tenants and require significant deposits, guarantees, and insurance coverage to protect themselves. In a word, no. An office sharing agreement is actually a „contractual license.“ The main difference between a „license“ and an office rental is that a license does not grant the „customer/licensee“ any rights to a specific or fixed area. An Office sharing agreement specifies a specified number of desktops or desktops, but not their location.

The costs of renting and/or operating office space are usually the most important expenses for any business. An office sharing agreement legally allows the „operator/licensor“ to involve another company to support the expansion of power sharing by granting the use of a „free/unused workplace“. within this property. You agree that the Host has the right to request in writing, with 30 days` notice, that you move to another room in the same building with the same size and configuration or more for the remainder of the Term, provided that the fee for such new workspace is not higher than the fee for your current space. Lawyers for tenants whose clients are in arrears with a bona fide license agreement can no longer guarantee that an eviction order will be deferred for up to six months. If their licensed customers do not remedy their failure, customers are quickly and easily subjected to peaceful self-help expulsion from authorized premises. Owners no longer eagerly forego their income and outstanding funds to ensure the recovery of ownership of the premises at any given time. The bargaining lever will shift in favor of the owner-licensor, who can either demand full payment from the defaulting licensee if he wants to avoid eviction, or demand peaceful ownership of the premises with the full support of the law. For homeowners frustrated with the right facts and properties using the latest computerized entry systems, this is a long-awaited revolution. Daniel A. Suckerman is based in the offices of Lowenstein Sandler LLP in New York and Roseland, New Jersey. He represents a wide range of clients in commercial real estate transactions, including acquisitions, leasing, financing, negotiation of joint venture agreements and asset management matters.

Daniel`s practice is nationwide oriented and covers all asset classes, allowing him to keep abreast of commercial real estate trends. Stacey C. Tyler is a partner at Lowenstein Sandler LLP. It deals with a wide range of real estate transactions, including acquisitions, divestitures, development, leasing, financing, hotel transactions and public-private partnerships. Stacey articled with the Honourable Carolyn E. Demarest of the Kings County Supreme Court, Commercial Division. However, the use of a license agreement instead of a lease agreement does not completely exclude all possibilities of dispute between the owner-licensor and the tenant-licensee. Whether the „self-help“ used was peaceful (and therefore legal) or violent (and therefore illegal) or not is always a possible subject of legal dispute. However, if there is a valid license agreement, the owner-licensor is not obliged to readmit the displaced licensee to the premises, even if it is determined that the self-help used was violent and not peaceful.

In New York, the licensee`s only remedy is the triple damage that section 853 of the RPAPL provides for forced exclusion. In the meantime, the owner-licensor is free to sublicense the use of the premises to another licensee before a court decision. If you have free offices in your own office space or rented office space, you can „license“ them to other companies using an „office sharing agreement“. An office sharing agreement puts things on a formal basis and includes details about which desktops to use, the „license fee“ to pay, and the period for which they are supposed to be available. This is an extremely easy and lucrative way to reduce a company`s overhead. This Agreement and all applicable House Rules are governed by the underlying lease, mortgage, escrow deed, hereditary building right or any other lien arising now or later on the premises or building, as well as by renewals, modifications, refinancings and extensions thereof, including the Host`s lease with the Host`s owner, and any other agreement to which the Host`s Lease is subordinate, subordinated. .