The Building Lease Agreement is a fundamental commercial document used in Saudi Arabia when a property owner (landlord) agrees to lease a building or commercial space to another party (tenant) for a specified period. This document must comply with Saudi Arabian law, including Sharia principles and the Saudi Lease Law (Royal Decree No. M/61), and requires registration in the Ejari system for legal enforcement. It typically includes detailed provisions for rent payment, maintenance obligations, permitted use restrictions, and dispute resolution mechanisms. The agreement is essential for protecting both parties' interests and ensuring clear understanding of rights and responsibilities in commercial property relationships within the Saudi Arabian jurisdiction.
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1. Parties: Identification of the Landlord and Tenant with full legal names, addresses, and commercial registration numbers if applicable
2. Background: Context of the lease agreement, including brief description of the property and parties' intention to enter into a lease arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including 'Property', 'Term', 'Rent', 'Security Deposit', etc.
4. Property Description: Detailed description of the leased premises, including address, size, and permitted use
5. Term and Renewal: Duration of the lease, commencement date, expiry date, and any renewal options
6. Rent and Payment Terms: Rent amount, payment schedule, method of payment, and late payment consequences
7. Security Deposit: Amount, payment terms, conditions for return, and permitted deductions
8. Utilities and Services: Responsibility for utilities, service charges, and maintenance obligations
9. Tenant's Obligations: Core responsibilities including maintenance, repairs, compliance with laws, and permitted use
10. Landlord's Obligations: Core responsibilities including structural maintenance, insurance, and provision of services
11. Insurance Requirements: Required insurance coverage for both parties
12. Default and Remedies: Events of default and corresponding remedies available to either party
13. Termination: Grounds for termination and the process to be followed
14. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction for disputes
15. Notices: Process and addresses for serving formal notices under the agreement
1. Force Majeure: Provisions for unforeseen circumstances preventing performance, including pandemic-related provisions
2. Assignment and Subletting: Terms governing the tenant's ability to assign or sublet the property, if permitted
3. Alterations and Improvements: Provisions regarding modifications to the property, required approvals, and ownership of improvements
4. Green Building Compliance: Specific provisions for environmentally friendly building operations and sustainability requirements
5. Break Clause: Early termination options for either party under specific circumstances
6. Quiet Enjoyment: Landlord's covenant to ensure tenant's peaceful possession
7. Property Management: Appointment and role of property manager if applicable
8. Signage Rights: Terms governing the tenant's right to install and maintain signage
9. Common Areas: Rights and obligations regarding shared facilities in multi-tenant buildings
10. VAT and Taxes: Specific provisions regarding tax obligations and VAT treatment
1. Schedule 1 - Property Plans: Detailed floor plans and measurements of the leased premises
2. Schedule 2 - Inventory: List of fixtures, fittings, and equipment included in the lease
3. Schedule 3 - Service Charges: Breakdown of service charges and calculation methodology
4. Schedule 4 - Building Rules: Specific rules and regulations for the use of the building
5. Schedule 5 - Maintenance Schedule: Detailed breakdown of maintenance responsibilities between parties
6. Schedule 6 - Permitted Alterations: Pre-approved alterations and improvement works
7. Schedule 7 - Handover Protocol: Procedure and checklist for property handover
8. Appendix A - Required Insurances: Detailed insurance requirements for both parties
9. Appendix B - Form of Rent Review Notice: Template for rent review notifications
10. Appendix C - Building Safety Certificates: Copies of relevant safety and compliance certificates
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Commercial Property
Retail
Manufacturing
Healthcare
Education
Technology
Professional Services
Hospitality
Banking and Finance
Logistics and Warehousing
Construction
Energy
Telecommunications
Relevant Teams
Legal
Finance
Operations
Facilities Management
Real Estate
Risk and Compliance
Procurement
Corporate Services
Administration
Property Management
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Real Estate Director
Facilities Manager
Property Manager
Legal Counsel
Commercial Director
Operations Manager
Finance Manager
Compliance Officer
Risk Manager
Asset Manager
Procurement Manager
Real Estate Investment Manager
Corporate Services Manager
Branch Manager
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