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Sub Lease Contract for United Arab Emirates

Sub Lease Contract Template for United Arab Emirates

A Sub Lease Contract under UAE law is a legally binding agreement where a tenant (sub-lessor) leases all or part of a property to another party (sub-tenant), while maintaining the original lease with the head landlord. This document must comply with both federal UAE laws and specific emirate regulations, including mandatory registration requirements such as EJARI in Dubai or Tawtheeq in Abu Dhabi. The agreement details the terms of the sublease, including rent, duration, permitted use, and obligations of all parties, while ensuring alignment with the head lease terms and obtaining necessary landlord approvals.

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What is a Sub Lease Contract?

The Sub Lease Contract is utilized when a tenant wishes to transfer their leasehold interest in a property to another party while maintaining the original lease agreement with the landlord. This document is essential in the UAE real estate market, particularly in commercial contexts where businesses need flexibility in their property arrangements. The agreement must comply with UAE federal laws, including the Civil Code and specific emirate regulations such as Dubai Law No. 26 of 2007 or Abu Dhabi Law No. 20 of 2006. It requires careful consideration of the head lease terms, landlord's consent, and mandatory registration requirements. The document typically includes detailed provisions for rent, maintenance responsibilities, permitted use, and the relationship between all parties involved, ensuring protection of interests while maintaining compliance with local property laws.

What sections should be included in a Sub Lease Contract?

1. Parties: Identification of Head Landlord, Head Tenant (Sub-Lessor), and Sub-Tenant with full legal names and details

2. Background: Context of the sublease, reference to head lease, and confirmation of head landlord's consent

3. Definitions: Key terms used throughout the agreement including Property, Term, Head Lease, Permitted Use

4. Grant of Sublease: Formal grant of the sublease, specifying the property and any excluded areas

5. Term and Commencement: Duration of sublease, commencement date, and relationship to head lease term

6. Rent and Payment Terms: Rent amount, payment frequency, method of payment, and security deposit details

7. Service Charges and Utilities: Responsibility for service charges, utilities, and other operational costs

8. Use of Premises: Permitted use of the property and any restrictions

9. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements

10. Insurance: Insurance requirements for both sub-lessor and sub-tenant

11. Sub-Tenant Covenants: Obligations and promises of the sub-tenant

12. Sub-Lessor Covenants: Obligations and promises of the sub-lessor

13. Head Lease Obligations: Relationship with head lease and compliance requirements

14. Assignment and Further Subletting: Restrictions on assignment and further subletting

15. Termination: Grounds for termination and procedures

16. Governing Law and Jurisdiction: Specification of UAE law and relevant emirate jurisdiction

What sections are optional to include in a Sub Lease Contract?

1. Fit-out Works: Include when sub-tenant is permitted to carry out modifications or improvements

2. Break Clause: Include when early termination options are available to either party

3. Reinstatement: Include when specific requirements for property return condition are needed

4. Signage Rights: Include when sub-tenant has specific rights to display signage

5. Parking: Include when parking spaces are allocated as part of the sublease

6. Common Areas: Include when rights to common areas need specific definition

7. Force Majeure: Include when specific provisions for unforeseen circumstances are required

8. Environmental Compliance: Include for properties where environmental regulations are significant

What schedules should be included in a Sub Lease Contract?

1. Schedule 1 - Property Description: Detailed description of the subleased premises including floor plans and measurements

2. Schedule 2 - Head Lease: Copy or relevant excerpts of the head lease

3. Schedule 3 - Rent Payment Schedule: Detailed breakdown of rent payments and escalations

4. Schedule 4 - Service Charges: Breakdown of service charges and allocation methodology

5. Schedule 5 - Condition Report: Initial condition report of the premises

6. Schedule 6 - Fit-out Specifications: Technical specifications for any permitted fit-out works

7. Schedule 7 - Building Rules: Building rules and regulations applicable to the property

8. Appendix A - Head Landlord's Consent: Written consent from head landlord for the sublease

9. Appendix B - EJARI Registration: EJARI registration requirements and procedures

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

Rental Agreement

Cost

Free to use
Relevant legal definitions









































Clauses









































Relevant Industries

Real Estate

Retail

Commercial Office

Industrial

Hospitality

Healthcare

Education

Manufacturing

Logistics

Professional Services

Technology

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Corporate Services

Administration

Business Development

Property Management

Asset Management

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Facilities Manager

Operations Director

Commercial Director

Chief Financial Officer

Compliance Officer

Real Estate Administrator

Business Development Manager

Asset Manager

Leasing Manager

Corporate Services Manager

General Counsel

Operations 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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