The Fixed Term Lease agreement is a fundamental legal document used in Saudi Arabia to establish a lease relationship for a specified duration. It is essential for both residential and commercial property transactions and must comply with the Saudi Lease Law, Ejar system requirements, and Shariah principles. This document is particularly relevant in the context of Saudi Arabia's Vision 2030 reforms, which have introduced new regulations and standards for real estate transactions. The agreement should be used whenever a definite-term lease arrangement is required, whether for housing, commercial premises, or industrial facilities. It includes comprehensive provisions covering rent payments, maintenance obligations, security deposits, termination conditions, and dispute resolution procedures, while ensuring alignment with local municipal regulations and mandatory registration requirements.
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1. Parties: Identification of landlord and tenant with full legal names, addresses, and national ID/CR numbers as required by Saudi law
2. Background: Context of the lease arrangement and property overview
3. Definitions: Key terms used throughout the agreement including Property, Term, Rent, and other relevant definitions
4. Lease Grant: Formal grant of lease and specification of the leased premises
5. Term: Duration of lease, commencement date, and end date
6. Rent and Payment Terms: Rent amount, payment schedule, method of payment, and late payment consequences
7. Security Deposit: Amount, payment terms, and conditions for return of security deposit
8. Use of Property: Permitted use of property and restrictions
9. Utilities and Services: Responsibility for utilities, services, and related charges
10. Maintenance and Repairs: Obligations of both parties regarding property maintenance and repairs
11. Landlord's Obligations: Specific duties and responsibilities of the landlord
12. Tenant's Obligations: Specific duties and responsibilities of the tenant
13. Insurance: Required insurance coverage and responsibilities
14. Default and Remedies: Events of default and available remedies for both parties
15. Termination: Grounds and procedures for early termination
16. Governing Law and Jurisdiction: Application of Saudi law and jurisdiction for disputes
17. Notices: Process for formal communications between parties
18. Registration: Requirements for registration with Ejar system and relevant authorities
1. Subletting and Assignment: Include when subletting or assignment might be permitted under specific conditions
2. Alterations and Improvements: Include for commercial properties or when significant modifications might be needed
3. Force Majeure: Include when specific provisions for unforeseen circumstances are required
4. Option to Renew: Include when parties want to specify terms for lease renewal
5. Common Areas: Include for properties in multi-unit buildings or compounds
6. Parking: Include when specific parking arrangements need to be detailed
7. Property Management: Include when a property management company is involved
8. Guarantees: Include when additional security through personal or corporate guarantees is required
1. Schedule 1 - Property Description: Detailed description of the property including address, size, and included fixtures
2. Schedule 2 - Inventory List: List of furnishings and equipment included in the lease
3. Schedule 3 - Property Condition Report: Detailed report of property condition at commencement of lease
4. Schedule 4 - Service Charges: Breakdown of service charges and payment responsibilities
5. Schedule 5 - Building Rules: Rules and regulations for property use and maintenance
6. Schedule 6 - Fit-out Guidelines: Guidelines for any permitted alterations or improvements
7. Appendix A - Required Permits: Copies of necessary permits and certificates
8. Appendix B - Floor Plans: Detailed floor plans and property layouts
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