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Lease & License Agreement for United Arab Emirates

Lease & License Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes the terms and conditions for leasing property while simultaneously granting necessary licenses for its use. This agreement combines traditional lease provisions with specific UAE regulatory requirements, including RERA regulations where applicable. It addresses key aspects such as rent payments, maintenance obligations, permitted use, and compliance with local laws, while incorporating specific provisions required under UAE Civil Code and relevant emirate-specific property laws. The document ensures compliance with both federal and emirate-level requirements while protecting the interests of both landlord and tenant.

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What is a Lease & License Agreement?

The Lease & License Agreement is a fundamental document in UAE real estate transactions, essential for both commercial and residential property dealings. It serves as a comprehensive legal framework that not only establishes the traditional landlord-tenant relationship but also incorporates necessary licensing provisions required under UAE law. This document is particularly important in the UAE context where property usage often requires specific permits and licenses, especially in commercial and regulated zones. The agreement must comply with federal legislation including the UAE Civil Code, as well as specific emirate-level property laws and RERA regulations. It is commonly used when leasing commercial spaces, retail units, industrial facilities, or residential properties, particularly in cases where specific usage permissions or operating licenses need to be integrated with the lease terms.

What sections should be included in a Lease & License Agreement?

1. Parties: Identification of the Landlord and Tenant with full legal names, licenses/registration numbers, and authorized signatories

2. Background: Brief context of the lease arrangement and property ownership status

3. Definitions: Key terms used throughout the agreement including Property, Commencement Date, Term, License, etc.

4. Grant of Lease: Formal grant of lease and permitted use of the property

5. Term and Renewal: Duration of lease, commencement date, expiry date, and renewal terms

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

7. Service Charges: Details of additional charges, utilities, maintenance fees, and DEWA charges

8. Tenant Obligations: Responsibilities including maintenance, repairs, compliance with laws, and permitted use

9. Landlord Obligations: Responsibilities including structural maintenance, insurance, and property access

10. Insurance: Required insurance coverage for both parties

11. Assignment and Subletting: Restrictions on transfer of lease rights

12. Termination: Grounds for termination, notice requirements, and consequences

13. Handback: Conditions for returning the property at lease end

14. Notices: Communication methods and contact details

15. Governing Law and Jurisdiction: UAE law application and dispute resolution mechanism

What sections are optional to include in a Lease & License Agreement?

1. Fit-Out Works: Include when tenant is permitted to conduct improvement works, specifying approval process and conditions

2. Trading License Requirements: Include for commercial properties requiring specific licenses

3. Break Clause: Include when early termination options are negotiated

4. Force Majeure: Include detailed force majeure provisions for longer term leases

5. Exclusivity: Include for retail spaces with specific trade restrictions

6. Green Lease Provisions: Include for properties with sustainability requirements

7. Parking Rights: Include when specific parking arrangements are part of the lease

8. Signage Rights: Include for commercial properties requiring external signage

9. Operating Hours: Include for retail or commercial properties in managed buildings

What schedules should be included in a Lease & License Agreement?

1. Property Description: Detailed description of premises including floor plans and area calculations

2. Rent Schedule: Detailed breakdown of rent payments, escalations, and due dates

3. Service Charge Schedule: Itemized list of service charges and calculation methodology

4. Condition Report: Documentation of property condition at lease commencement

5. Building Rules and Regulations: Specific rules applicable to the property or building

6. Fit-out Guidelines: Technical specifications and requirements for any permitted modifications

7. Handover Protocol: Checklist and procedures for property handover

8. Permitted Use Schedule: Detailed description of allowed activities and operations

9. Insurance Requirements: Specific insurance coverage requirements and minimum values

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

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions














































Clauses





































Relevant Industries

Real Estate

Retail

Commercial Office

Industrial

Hospitality

Healthcare

Education

Manufacturing

Logistics

Financial Services

Technology

Food & Beverage

Professional Services

Telecommunications

Media & Entertainment

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Procurement

Compliance

Risk Management

Corporate Services

Administration

Property Management

Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Compliance Officer

Operations Director

Chief Financial Officer

Commercial Director

Procurement Manager

Business Development Manager

Asset Manager

Leasing Manager

Corporate Services Manager

Risk Manager

General Counsel

Contract Administrator

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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