15 FAM 530
PROCEDURES FOR DISPOSAL OF REAL PROPERTY
(CT:OBO-39; 12-16-2013)
(Office of Origin: OBO)
15 FAM 531 applicability
(CT:OBO-39; 12-16-2013)
For Department of State properties,
the disposal procedure for Real Property is the responsibility of post and the
Office of Acquisitions and Disposals in the
Directorate for Planning and Real Estate in the Bureau of Overseas Buildings Operations (OBO/PRE/OAD). In the case of U.S. Agency for International Development (USAID) properties,
the Overseas Management Division, Office of Management Services, Bureau for
Management, USAID/Washington (USAID/W-M/MS/OMD) are responsible for disposal.
Before taking any action relating to disposal of a property, a post must obtain
approval from OBO/PRE/OAD for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD. OBO/PRE/OAD for
Department of State properties, or,
USAID/W-M/MS/OMD for USAID properties, will determine the disposal method that
will produce the best return to the U.S. Government.
15 FAM 532 Sales
15 FAM 532.1 General and Broker
(CT:OBO-39; 12-16-2013)
In general, a real estate broker is engaged for sales by
OBO for Department of State properties,
or, in the case of USAID properties, USAID/W-M/MS/OMD. However, with the prior
approval of OBO/PRE/OAD for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD, post may conduct a sale without a broker if that
is the most efficient method of disposal and likely to yield the highest
proceeds. The role of the real estate broker is to market the property and
find potential buyers. OBO/PRE/OAD for
Department of State properties, or, in the
case of USAID properties, USAID/W-M/MS/OMD, selects the broker through its own
competitive process, or, the broker is selected through a competitive process
at post with the approval of OBO/PRE/OAD or
USAID/W-M/MS/OMD respectively. The post then requests an allotment of funds
from OBO/PRE/OAD for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD, for the broker commission and fees. The
selection and fees of brokers are governed by 15 FAM 420.
15 FAM 532.2 Local Legal Counsel
(CT:OBO-39; 12-16-2013)
Local legal counsel (fluent in written and spoken English)
must be retained, with selection and fees subject to 15 FAM 420.
Once retained, local counsel must analyze
the issues of ownership, title, government approvals, local tradition, and
other factors affecting the marketing and sale of the property. The post
requests an allotment of funds through OBO/PRE/OAD
for Department of State properties,
or, in the case of USAID properties, USAID/W-M/MS/OMD, for the counsel fees.
15 FAM 532.3 Appraisals
(CT:OBO-39; 12-16-2013)
a. Generally, two independent appraisals of the
property by qualified appraisers are obtained with selection and fees subject
to 15 FAM 420.
In general, appraisers are selected by the Office of Master Planning and
Evaluations in the Directorate for Planning
and Real Estate in the Bureau of Overseas
Buildings Operations (OBO/PRE/MPE) for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD. OBO/PRE/MPE may,
however, request post to obtain the appraisals; in this case, post requests an allotment of funds
from OBO/PRE/MPE for the appraisal fees. Upon receipt of the appraisals,
OBO/PRE/MPE for Department of State properties,
or, in the case of USAID properties, USAID/WM/MS/OMD, develops a reconciled
estimate of value (REV).
b. For Department of
State properties, this appraisal requirement may be waived by
OBO/PRE/MPE if the cost of the appraisal appears high relative to the amount at
stake, if only a single credible appraisal can be obtained, if local conditions
and experience indicate no credible appraisals can be obtained, or if it is in
the best interests of the U.S. Government
based on the facts and circumstances.
15 FAM 532.4 Marketing
(CT:OBO-39; 12-16-2013)
The broker develops a marketing plan, market analysis, and
asking price for the property, all subject to approval by OBO/PRE/OAD for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD.
15 FAM 532.5 Offers
(CT:OBO-39; 12-16-2013)
All offers must be in writing, in English, and all must be
forwarded to OBO/PRE/OAD for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD for review. Offers usually include an earnest
money deposit, preferably 10 percent of the sales price.
15 FAM 532.6 Negotiations
(CT:OBO-39; 12-16-2013)
Negotiations can be conducted by post directly, through
the broker, or by a realty specialist at the option of OBO/PRE/OAD for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD.
15 FAM 532.7 Contract
(CT:OBO-39; 12-16-2013)
OBO/PRE/OAD and L/BA
for Department of State properties or, in
the case of USAID properties, USAID/W-M/MS/OMD, and the regional legal adviser
(RLA) must review and approve the contract prior to its execution by the
buyer. Post must receive authority by cable from
OBO/PRE/OAD for Department of State properties,
or, in the case of USAID properties, USAID/W-M/MS/OMD, prior to executing
the sales contract.
15 FAM 532.8 Pre-Settlement
(CT:OBO-39; 12-16-2013)
Before settlement, post must receive all needed
host-government approvals. Post receives a cable with instructions for the
settlement process and sale from OBO/PRE/OAD for
Department of State properties, or, in the
case of USAID properties, USAID/W-M/MS/OMD.
15 FAM 532.9 Settlement
(CT:OBO-39; 12-16-2013)
With local legal counsel, post conducts the settlement,
receives the proceeds, and deposits them with the U.S. disbursing officer. The
U.S. Government does not warranty title, unless local law specifically requires
warranty by the seller. Post must process the sale proceeds in accordance with
15 FAM 522
and cable OBO/PRE/OAD for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD, for instructions.
15 FAM 532.10 Documentation
(CT:OBO-39; 12-16-2013)
a. Upon the settlement of a sale, post forwards
documentation to the Office of Real Property Leasing
(OBO/PRE/RPL) for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD with a copy to the Departmental
Allotment Accounting of Finance of the Bureau of
the Comptroller and Global Financial Services (CGFS). Required documentation includes:
(1) The sales contract, including an accurate English
translation as outlined in 15 FAM 451,
paragraph c;
(2) Other signed documentation confirming the date of
sale, completion of the sale, and amount of money in dollars and local currency
agreed upon, if not listed in the sales contract; and
(3) Signed Form OF-158, General Receipt, indicating
the total amount and the exchange rate on the date of deposit.
b. Post also enters the sales data into the OBO real
property database and designates the property as retired.
15 FAM 532.11 Broker Invoice
(CT:OBO-39; 12-16-2013)
After settlement, post forwards a draft invoice and
supporting documents from the broker to OBO/PRE/OAD
for Department of State properties,
or, in the case of USAID properties, USAID/W-M/MS/OMD, as required by OBO.
After receipt of the Form OF-158, OBO/PRE/OAD informs
the Office of Financial Management in the
Directorate for Resource Management in the Bureau of Overseas Buildings Operations
(OBO/RM/FM), and the broker, of the currency conversion rate. OBO/PRE/OAD for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD, verifies that sufficient funds have been set
aside to pay the invoice, and/or does a modification to add funds. The invoice
is then paid. Broker fees are not paid at settlement, but through the
after-settlement procedure, outlined above.
15 FAM 533 Sale through competitive
bids
15 FAM 533.1 General and Broker
(CT:OBO-39; 12-16-2013)
In general, a real estate broker is engaged to assist with
sales through competitive bids. However, with the prior approval of OBO/PRE/OAD for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD, a post may conduct a sale through competitive
bids without a broker if the post has previous experience in the method. The
role of the real estate broker is to assist in developing the invitation to
bid, and to find interested parties to receive it. Please refer to 15 FAM 532.1
for additional guidance.
15 FAM 533.2 Local Legal Counsel
(CT:OBO-22; 12-23-2011)
Please refer to 15 FAM 532.2
for guidance on retaining local legal counsel.
15 FAM 533.3 Appraisals
(CT:OBO-22; 12-23-2011)
Please refer to 15 FAM 532.3
for guidance on obtaining appraisals.
15 FAM 533.4 Advertising and
Invitation to Bid
(CT:OBO-39; 12-16-2013)
The broker develops a marketing plan in English and the
local language for contacting interested buyers and assists in developing the
invitation to bid, which must contain the information specified in 15 FAM Exhibit 533.
Upon approval by OBO/PRE/OAD for
Department of State properties, or, in the
case of USAID properties, USAID/W-M/MS/OMD, the invitation can be advertised
and sent out.
15 FAM 533.5 Bids
(CT:OBO-39; 12-16-2013)
All bids must be in writing, in English, and forwarded to OBO/PRE/OAD for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD, for review. Each bid must be accompanied by
earnest money in the form of a certified check payable to the Treasurer of the
United States, in an amount not less than 5 percent of the bid, unless OBO for
Department of State properties, or, in the
case of USAID properties, the regional legal adviser (RLA), approves an
exception, which should be documented. Posts must provide a summary of
legitimate bids to OBO/PRE/OAD for
Department of State properties, or, in the
case of USAID properties, USAID/W-M/MS/OMD, with a recommendation as to which
bid, if any, appears to be acceptable.
15 FAM 533.6 Acceptance of Bids
(CT:OBO-39; 12-16-2013)
There are no negotiations involved in the competitive bid
method. No bid will be accepted until first approved by the Department of State; and the U.S. Government must reserve
the right to reject any and all bids for any reason whatsoever. When OBO for
Department of State properties, or, in the case of USAID properties,
USAID/W-M/MS/OMD accepts a bid, the post must notify all other bidders and
return their earnest money deposits.
15 FAM 533.7 Contract
(CT:OBO-39; 12-16-2013)
The draft sales contract prior to the issuance of the
invitation to bid must be reviewed and approved by OBO/PRE/OAD and L/BA for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD and the RLA. After U.S. Government acceptance of
a bid, the contract must be executed by the buyer. Any modifications to the previously
approved draft must be approved by OBO/PRE/OAD
and L/BA for Department of State properties,
or, in the case of USAID properties, USAID/W-M/MS/OMD. The post must receive
authority by cable to execute the contract from OBO/PRE/OAD
for Department of State properties,
or, in the case of USAID properties, USAID/W-M/MS/OMD.
15 FAM 533.8 Pre-Settlement
(CT:OBO-22; 12-23-2011)
Please refer to 15 FAM 532.8
for pre-settlement guidance.
15 FAM 533.9 Settlement
(CT:OBO-22; 12-23-2011)
Please refer to 15 FAM 532.9
for settlement guidance.
15 FAM 533.10 Documentation
(CT:OBO-22; 12-23-2011)
Please refer to 15 FAM 532.10
for guidance on documentation.
15 FAM 533.11 Broker Invoice
(CT:OBO-22; 12-23-2011)
Please refer to 15 FAM 532.11
for guidance on broker invoicing.
15 FAM 534 PROCEDURES FOR PROPERTY
EXCHANGES
15 FAM 534.1 General and Broker
(CT:OBO-39; 12-16-2013)
An exchange is the disposal of and the acquisition of one
or more properties in a single transaction. Depending on the relative values
of the properties, additional cash consideration is usually paid from one party
to the other (known as boot). A real estate broker may be engaged for an
exchange to work on the disposal, the acquisition, or both. However, with the
prior approval of OBO/PRE for Department of State
properties, or, in the case of USAID properties, USAID/W-M/MS/OMD, a
post may conduct an exchange without a broker if that is the most efficient
method. The role of the real estate broker normally is to coordinate the
interests of the parties to the exchange and reach a mutually acceptable
balance. Relative value disparity between properties is normally negotiated
and boot is paid by the party acquiring the property of lesser value in order
to balance equities. Please refer to 15 FAM 532.1
for additional guidance.
15 FAM 534.2 Local Legal Counsel
(CT:OBO-22; 12-23-2011)
Please refer to 15 FAM 532.2
for guidance on retaining local legal counsel.
15 FAM 534.3 Appraisals
(CT:OBO-22; 12-23-2011)
Appraisal requirements apply to each of the exchanged
properties. Please refer to 15 FAM 532.3
for additional guidance on obtaining appraisals.
15 FAM 534.4 Marketing
(CT:OBO-39; 12-16-2013)
Typically an exchange is not planned but emerges as a
viable alternative to a traditional sale. Should this occur, a broker may be
engaged to develop a marketing plan, market analysis, and estimated value for
the exchange property, all subject to prior approval by OBO/PRE for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD.
15 FAM 534.5 Offers
(CT:OBO-22; 12-23-2011)
Earnest money deposits pertain to the price of the
disposal property. Please refer to 15 FAM 532.5
for additional guidance.
15 FAM 534.6 Negotiations
(CT:OBO-22; 12-23-2011)
Please refer to 15 FAM 532.6
for guidance on negotiations.
15 FAM 534.7 Contract
(CT:OBO-22; 12-23-2011)
Please use guidance in 15 FAM 532.7
for exchange contracts.
15 FAM 534.8 Pre-Settlement
(CT:OBO-39; 12-16-2013)
Please refer to 15 FAM 532.8
for pre-settlement guidance.
15 FAM 534.9 Settlement
(CT:OBO-22; 12-23-2011)
Please refer to 15 FAM 532.9
for guidance on settlements.
15 FAM 534.10 Documentation
(CT:OBO-39; 12-16-2013)
a. Upon the settlement of the exchange transaction, the
post forwards documentation to the Office of Real Property Leasing in the Directorate for Planning and Real Estate in the Bureau of Overseas Buildings Operations (OBO/PRE/RPL) for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD. A copy is sent to Departmental Allotment
Accounting of Finance of the Bureau of the
Comptroller and Global Financial Services (CGFS). Required documentation for the disposal
property includes:
(1) The exchange contract including an accurate
English translation as outlined in 15 FAM 451,
paragraph c;
(2) Other signed documentation confirming the date of
exchange, completion of the exchange, and amount of money in dollars and local
currency agreed upon, if not listed in the exchange contract; and
(3) Signed Form OF-158, General Receipt, indicating
the total amount of the boot and the currency exchange rate on the date of
deposit.
b. Required documentation, and transmittal thereof, for
the acquisition property is set forth in 15 FAM 451 and 15 FAM 452.
c. Post also enters the exchange data into the OBO
real property database and designates the disposed property as retired. In
the case of the acquired property refer to 15 FAM 400.
15 FAM 534.11 Broker Invoice
(CT:OBO-22; 12-23-2011)
Please refer to 15 FAM 532.11
for guidance on broker invoicing.
15 FAM 535 PROCEDURES FOR LEASE AND
LICENSE AGREEMENTS TO PROSPECTIVE USERS
15 FAM 535.1 Definitions
(CT:OBO-22; 12-23-2011)
a. A lease is a contract conveying the right to occupy
and use property for a specific period of time in consideration of rent or
other compensation. Leases must be created in accordance with Department of
State requirements, local laws, and market conditions.
b. A license is an agreement that sets terms to allow
another party to occupy the property of another without becoming a trespasser.
It creates no transferable rights for the licensee and can be revoked at any
time by the licensor (owner).
15 FAM 535.2 Restrictions
(CT:OBO-39; 12-16-2013)
An employee occupying U.S. Government-held quarters may
not enter into any arrangement that would provide compensation to the employee
for use of the quarters. No non-U.S. Government individual or organization may
occupy or otherwise use U.S. Government-owned or
capital lease (GO/CL) property in
the absence of a lease, sublease, or license established in accordance with
these regulations. When subleasing, post must attempt to recover maintenance
costs to the extent possible.
15 FAM 535.3 Interagency Transfers
(CT:OBO-39; 12-16-2013)
A memorandum of understanding (MOU) is required to
temporarily transfer GO/CL real property
from one agency to another.
15 FAM 535.4 Broker
(CT:OBO-39; 12-16-2013)
In general, a real estate broker is not engaged for
leasing or licensing a GO/CL property.
However, post may engage a broker with the approval of OBO/PRE/OAD for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD. Please refer to 15 FAM 532.1
for additional guidance.
15 FAM 535.5 Local Legal Counsel
(CT:OBO-39; 12-16-2013)
Local counsel must analyze
the issues affecting the leasing or licensing of the property, and to draft an
agreement. Please refer to 15 FAM 532.2
for additional guidance.
15 FAM 535.6 Lease and License
Proposals
(CT:OBO-39; 12-16-2013)
Before proceeding with a lease or license, post must
obtain approval from OBO/PRE/OAD for
Department of State properties, or, in the
case of USAID properties, USAID/W-M/MS/OMD, and submit the following:
(1) Identification of the property and site, including
property identification numbers;
(2) Names of prospective tenant(s) and their financial
offer(s);
(3) Comparisons of proposed rate with prevailing local
rates;
(4) A recommendation as to which offer, if any, the
U.S. Government should accept;
(5) The reasons for leasing, if the post recommends a
lease instead of a license; and
(6) Information as to whether local law, in any way,
expands the rights of the occupant beyond those granted by the terms of the
proposed agreement.
15 FAM 535.7 Negotiations
(CT:OBO-39; 12-16-2013)
Negotiations can be conducted by post directly, through
the broker, or by an OBO/PRE/OAD realty
specialist for Department of State properties,
or, in the case of USAID properties, USAID/W-M/MS/OMD. Post must consult local
legal counsel prior to entering into negotiations to determine whether local
laws grant the tenant rights beyond those that the U.S. Government is willing
to grant, as stated in the model lease or license (see 15 FAM Exhibit
534(1) and 15
FAM Exhibit 534(2)). If such additional rights exist under local law, post
must provide an explanation to OBO/PRE/OAD for
Department of State properties, or, in the
case of USAID properties, USAID/W-M/MS/OMD, with suggested solutions to protect
the U.S. Governments equities. If there are no such additional rights, post
may proceed with negotiations after OBO/PRE/OAD approval
for Department of State properties, or, in
the case of USAID properties, USAID/W-M/MS/OMD, approval.
15 FAM 535.8 Agreement
(CT:OBO-39; 12-16-2013)
Prior to execution by the tenant/licensee of the
lease/license agreement, it must be reviewed and approved by OBO/PRE/OAD and L/BA for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD and the RLA. If U.S. Government-owned (GO)
furniture, furnishings, appliances and equipment (FFA&E) are included, the
agreement must include an inventory that reflects the condition of each item as
good, fair, or poor. The post must receive OBO/PRE/OAD
authority for Department of State properties,
or, in the case of USAID properties, USAID/W-M/MS/OMD, authority by cable to
execute the lease or license agreement.
15 FAM 535.9 Deposit
(CT:OBO-22; 12-23-2011)
If possible, the post obtains a deposit of 2 months rent
and holds it in escrow against possible tenant damage to the property. Escrow
deposits are accounted for in a local deposit account.
15 FAM 535.10 Execution
(CT:OBO-22; 12-23-2011)
When executing a lease or license, a post must comply with
the host governments requirements, including registration.
15 FAM 535.11 Renewals
(CT:OBO-39; 12-16-2013)
The model lease (15 FAM Exhibit
534(1)) purposefully excludes language on lease renewals. A lease renewal,
if approved by OBO/PRE/OAD, for Department
of State properties, or, in the case of
USAID properties, USAID/W-M/MS/OMD, must be accomplished by an amendment.
15 FAM 535.12 Documentation
(CT:OBO-39; 12-16-2013)
a. Upon execution of a lease, license, renewal, or
termination, the post sends one signed and/or certified counterpart of the
agreement to OBO/PRE/RPL for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD. The agreement must include an accurate English
translation as outlined in 15 FAM 451,
paragraph c, to OBO/PRE/RPL or
USAID/W-M/MS/OMD, respectively. Post must retain one signed counterpart. A
termination notification must bear the number of the license or lease, and it
or a subsequent document must report that all sums owed have been paid (see 15 FAM 450).
b. The RPA database is to be updated by post to reflect
the change of use.
15 FAM 535.13 Broker Invoice
(CT:OBO-39; 12-16-2013)
Contrary to the other forms of disposal, in the instance
of a lease or license transaction and after execution of the agreement, the
post may pay the leasing brokers invoice following approval by OBO/PRE/OAD for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD.
15 fam 536 through 539 unassigned
15 FAM Exhibit 533
Invitation to Bid
(CT:OBO-39; 12-16-2013)
The following are requirements of an invitation to bid on
U.S. Government-owned (GO) real property abroad:
(1) A brief, legally accurate description of the
property is required;
(2) Bids must be made in writing;
(3) A settlement date for the submission of bids is
required;
(4) All bids will continue irrevocably in force for 35
days from the settlement date for such bids;
(5) Each bid must be accompanied by earnest money in
the form of a certified check payable to the Treasurer of the United States in
an amount not less than five percent of the bid, unless OBO for Department of State properties, or, in the case of USAID
properties, the Overseas Management Division, Office of Management Services,
Bureau for Management, USAID/ (USAID/W-M/MS/OMD), approves a documented
exception;
(6) No bid will be accepted until first approved by
the Department of State or USAID (RLA and M/MS/OMD); the U.S. Government
reserves the right to reject any and all bids for any reason whatsoever;
(7) After U.S. Government approval of the bid, a sales
agreement must be signed by the purchaser.
NOTE: This contract must
be drawn by a qualified local attorney in conjunction with appropriate
representatives from post, OBO for Department of
State properties, or, in the case of USAID properties,
USAID/W-M/MS/OMD. Post must employ a local legal expert to ensure adequate
protection of U.S. interests under and in compliance with local law. Post may
request allotment of funds for attorneys fees from OBO for Department of State properties, or, in the case of USAID
properties, USAID/W-M/MS/OMD;
(8) All transaction taxes, registration, and legal
fees must be the responsibility of the purchaser, unless local law provides
otherwise;
(9) Unless local law requires otherwise, the U.S.
Government will transfer title by means of a quit claim deed (a deed without
continuing U.S. Government warranty of title); and
(10) Upon payment in full of the purchase price, the
U.S. Government will deliver to the purchaser the necessary title documents,
without warranty of title, unless local law specifically requires warranty by
the seller.
15 FAM Exhibit 534(1)
Model Lease for U.S. Government-Owned Property
(CT:OBO-39; 12-16-2013)
LEASE
between
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
and
_________________________________
1. This lease made and entered into this __ day of _____________
in the year ____, by and between the Government of the United States of
America, acting by [Name] ___________________________, [Title] ___________________________,
hereinafter called the Lessor, and [Name] __________________________, [Title] __________________________,
hereinafter called the Lessee:
WITNESSETH: The parties hereto, for the
considerations hereinafter mentioned, agree as follows:
2. The Lessor, the owner of certain property in the
city of __________________ in the country of ____________________________,
described as [enter a complete description of the property]
________________________________, hereinafter referred to as the property,
which is not currently needed for the current operations of the Lessor, does
hereby lease to the said Lessee the above-described property, to have and to
hold for the term beginning ______________ and ending ______________.
3. It is understood and agreed that, after [state time
period] _____________ of this lease, either party shall be at liberty to
terminate this lease upon giving notice in writing to the other party sixty days in advance of the termination date,
without the Lessor having right to any payment other than for rental (or also
for damages owing under other terms of this lease) to the date the Lessee
surrenders the premises. Further, in the event the Lessee fails to fulfill any
of the conditions of this lease, and where this lease specifically provides no
other remedy for such failure, the Lessor is entitled either to terminate this
lease without previous notice or at its option, to take any measures that it
may deem necessary to establish the conditions contemplated by this agreement
and at the entire expense of the Lessee.
4. The Lessee shall pay the Lessor for the premises
rented at the rate of [state sum for each time period in U.S. dollars]
_____________, payable in [the local currency equivalent] at the prevailing
rate of exchange on the day on which each payment is made. The first payment
being due _________________, and subsequent payments at the following times:
__________________________.
5. The Lessee is prohibited from making any alterations
to the property without the express prior written consent of the Lessor.
6. All maintenance and nonstructural repairs shall be
made at the expense of the Lessee and, in the case of substituted materials or
equipment of a different type or make, with the consent of the Lessor.
7. The Lessee (Lessor) undertakes to furnish heat to
the property. (NOTE: This undertaking would vary
depending on heating facilities in the U.S. Government-owned premises. If heat
is supplied by the Lessor, the consideration to be set forth in Article 4
should be adjusted accordingly.)
8. The Lessee shall bear the cost of all water,
electricity, gas and other utilities served to the property.
9. The Lessee shall return the property in the same
good condition in which it was received, usual wear and tear and damages beyond
the Lessees control excepted.
10.The Lessee agrees that the property shall not be
used for any illegal purpose, or for
gambling, or for the sale of alcoholic
beverages. The Lessee further agrees to take into account in this connection
the fact that the Government of the United States of America owns the property.
11.The Lessee undertakes to keep the property in a
clean and tidy state, including upkeep of lawns and shrubs, and to maintain
those sidewalks and approaches peculiarly within the Lessees control in proper
condition and free of debris, snow and ice, and to accept all responsibility in
connection therewith, as well as to maintain properly all halls and stairways
or other conveniences intended for the sole use of the Lessee, (its, his, her,
their) agents and employees, and the public; the Lessee accepts full and sole
responsibility for any claim arising in connection with damage sustained
through the use of such halls, approaches, stairways, and conveniences.
12.Whenever the property or any essential part thereof
shall be destroyed by fire, flood, storm, earthquake, war, civil disturbance or
other casualty, this lease shall, in case of total destruction or on being
rendered unfit for further tenancy, immediately terminate, and, in case of
partial destruction or injury, shall terminate at the option of either Lessor
or Lessee upon giving notice in writing to the other party within twenty days
after such casualty, and no rent shall accrue to the Lessor after such
termination. Should the Lessee elect to remain in the premises rendered
partially untenantable, a proportionate rebate or reduction of prevailing
rental payments will be allowed.
13.Any stamp duties required for this lease shall be
paid by the Lessee and the English version of this lease is to be preferred for
the interpretation thereof.
IN WITNESS WHEREOF, the parties hereunto have
affixed their hands and seals as of the date written above.
___________________ [Name, Title and Address] ___________________
LESSOR
The United States of America, Acting By:
___________________ [Name, Title and Address] ___________________
LESSEE
15 FAM Exhibit 534(2)
Model License for U.S. Government-Owned Property
(CT:OBO-39; 12-16-2013)
REVOCABLE
LICENSE AGREEMENT
between
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
through
___________________________________
and
___________________________________
1. This license agreement made and entered into this __
day of ______________ in the year ____, by and between the United States of
America, acting by [Name] _____________________, [Title] _______________________,
hereinafter called the Licensor, and [Name] ______________________, [Title]
_______________________, hereinafter called the Licensee:
WITNESSETH: The parties hereto, for the
considerations hereinafter mentioned, agree as follows:
2. The Licensor, the owner of certain property in the
city of __________________ in the country of ____________________, described as
[Enter a complete description of the property] _______________________,
hereinafter referred to as the property, which is not currently needed for
the current operations of the Licensor, does hereby license the said Licensee
to use the property until advised by the Licensor that the property is needed
by the Licensor by giving ___ days notice. Upon receipt of such notice, the
Licensee shall vacate the property and remove all of (its, his, her, their)
possessions therefrom within ___ days following receipt of notice to vacate.
3. In the event that the Licensee shall desire to
discontinue the use of the property, the Licensee shall give the Licensor
thirty days notice of such intention.
4. In payment for the use of the property, the Licensee
shall pay the Licensor, so long as the Licensee shall use or occupy the
property, [state sum for each time period in U.S. dollars] ___________, in
advance, effective, ________________ payable in [name of currency]
___________________, at the prevailing rate of exchange on the day on which
each payment is made. The first payment being due ___________________, and
subsequent payments at the following times: __________________________________.
In the event the Licensee vacates the property before the expiration of a month
for which advance payment has been made, pro rata proportion (or no portion) of
the advance payment shall be returned to the Licensee.
5. The Licensee is prohibited from making any
alterations to the property without the express prior written consent of the
Licensor.
6. All maintenance and nonstructural repairs shall be
made at the expense of the Licensee and, in the case of substituted materials
or equipment of a different type or make, with the consent of the Licensor.
7. The Licensee (Licensor) undertakes to furnish heat
to the property. (NOTE: This undertaking would vary
depending on heating facilities in the U.S. Government-owned premises. If heat
is supplied by the Licensor, the consideration to be set forth in Article 4
should be adjusted accordingly.)
8. The Licensee shall bear the cost of all water,
electricity, gas and other utilities served to the property and shall pay all
taxes and rates, and shall submit to the Licensor receipts of bills for such taxes and rates.
9. The Licensee shall return the property in the same
good condition in which it was received, usual wear and tear and damages beyond
the Licensees control excepted.
10.The Licensee agrees that the property shall not be
used for any illegal purpose, or for gambling, or for the sale of alcoholic
beverages. The Licensee further agrees to take into account in this connection
the fact that the Government of the United States of America owns the property.
11.The Licensee undertakes to keep the property in a
clean and tidy state, including upkeep of lawns and shrubs, and to maintain
those sidewalks and approaches peculiarly within the Licensees control in
proper condition and free of debris, snow and ice, and to accept all
responsibility in connection therewith, as well as to maintain properly all
halls and stairways or other conveniences intended for the sole use of the
Licensee, (its, his, her, their) agents and employees, and the public; the
Licensee accepts full and sole responsibility for any claim arising in
connection with damage sustained through the use of such halls, approaches,
stairways, and conveniences.
12.Any stamp duties required for this license agreement
shall be paid by the Licensee and the English version of this license agreement
is to be preferred for the interpretation thereof.
IN WITNESS WHEREOF, the parties hereunto have
affixed their hands and seals as of the date written above.
[Name, Title and Address] ___________________________________
LICENSOR
The United States of America, Acting By:
[Name, Title and Address] ___________________________________
LICENSEE