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Commercial Lease Agreement for United Arab Emirates

Commercial Lease Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE federal laws and emirate-specific regulations that establishes the terms and conditions for leasing commercial property in the United Arab Emirates. This agreement outlines the rights and obligations of both landlord and tenant, including rent payment terms, maintenance responsibilities, permitted use of premises, and compliance with local commercial property regulations. It incorporates specific requirements under UAE Civil Code (Federal Law No. 5 of 1985) and relevant emirate-specific property laws, while addressing crucial aspects such as service charges, fit-out provisions, and dispute resolution mechanisms in accordance with UAE commercial practice.

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What is a Commercial Lease Agreement?

The Commercial Lease Agreement is a vital document used when a business entity seeks to lease commercial space in the United Arab Emirates. This agreement is essential for establishing a legally binding relationship between commercial landlords and tenants, ensuring compliance with UAE federal laws, including Federal Law No. 5 of 1985 (Civil Code), and relevant emirate-specific property regulations. The document covers crucial aspects such as lease terms, rental payments, maintenance obligations, permitted use, and dispute resolution procedures. It is particularly important in the UAE's dynamic business environment, where commercial property relationships must be clearly defined and documented to ensure legal protection for all parties. The agreement must consider specific requirements for different emirates, free zone regulations where applicable, and local municipality requirements for commercial properties.

What sections should be included in a Commercial Lease Agreement?

1. Parties: Identification of landlord and tenant with full legal names, trade license details, and authorized signatories

2. Background: Context of the lease agreement and brief description of the property

3. Definitions: Definitions of key terms used throughout the agreement

4. Demised Premises: Detailed description of the leased property including location, size, and permitted use

5. Lease Term: Duration of the lease, commencement date, and expiry date

6. Rent and Payment Terms: Rental amount, payment schedule, security deposit, and method of payment

7. Service Charges: Additional charges for building maintenance, utilities, and common area services

8. Use of Premises: Permitted business activities and restrictions on use

9. Maintenance and Repairs: Responsibilities of landlord and tenant for maintenance and repairs

10. Alterations and Improvements: Rules regarding modifications to the premises

11. Insurance: Required insurance coverage for both parties

12. Assignment and Subletting: Conditions for transferring or subletting the premises

13. Termination: Grounds and procedures for early termination

14. Default and Remedies: Consequences of breach and available remedies

15. Governing Law and Jurisdiction: Applicable UAE laws and jurisdiction for dispute resolution

16. Notices: Method and addresses for formal communications

17. Entire Agreement: Integration clause and relationship to prior agreements

What sections are optional to include in a Commercial Lease Agreement?

1. Fit-out Works: Details of any initial modifications or fit-out work to be done before occupancy

2. Break Clause: Option for early termination under specific conditions

3. Rent Review: Mechanism for periodic rent adjustments during the lease term

4. Option to Renew: Terms for extending the lease beyond the initial term

5. Free Zone Provisions: Special provisions if property is located in a free zone

6. Green Lease Provisions: Environmental and sustainability requirements

7. Force Majeure: Provisions for unforeseen circumstances preventing performance

8. Guarantees: Personal or corporate guarantees for tenant obligations

9. Exclusivity Clause: Restrictions on landlord leasing to competing businesses

What schedules should be included in a Commercial Lease Agreement?

1. Schedule 1 - Property Plan: Detailed floor plan and measurements of the premises

2. Schedule 2 - Inventory: List of fixtures, fittings, and equipment included in the lease

3. Schedule 3 - Service Charge Details: Breakdown of service charges and calculation method

4. Schedule 4 - Building Rules and Regulations: Specific rules governing the use of the building

5. Schedule 5 - Fit-out Guidelines: Technical specifications for permitted alterations

6. Schedule 6 - Handover Condition Report: Documentation of property condition at lease start

7. Appendix A - Required Licenses: List of mandatory business licenses and permits

8. Appendix B - Insurance Requirements: Detailed insurance specifications

9. Appendix C - Maintenance Schedule: Schedule of regular maintenance responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions








































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Relevant Industries

Retail

Professional Services

Healthcare

Financial Services

Technology

Hospitality

Manufacturing

Logistics and Warehousing

Education

Food and Beverage

Entertainment

Media and Communications

Industrial

Automotive

Relevant Teams

Legal

Finance

Operations

Facilities Management

Real Estate

Administration

Compliance

Risk Management

Property Management

Business Development

Procurement

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Real Estate Manager

Facilities Manager

Legal Counsel

Property Manager

Operations Director

Business Development Manager

Finance Director

Compliance Officer

Commercial Director

Asset Manager

Administrative Manager

Branch Manager

Procurement Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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