The Late Rent Payment Agreement serves as a crucial legal instrument in Saudi Arabia for managing situations where tenants have fallen behind on their rent obligations. This document provides a structured solution that complies with both Saudi civil law and Sharia principles, enabling landlords and tenants to formalize arrangements for settling overdue rent payments. It's particularly relevant when parties wish to avoid immediate legal action and maintain their landlord-tenant relationship while addressing payment defaults. The agreement typically includes detailed payment schedules, acknowledgment of debt, and specific terms for compliance with the Ejar system requirements. It's designed to protect both parties' interests while providing a clear framework for debt resolution that can be enforced through Saudi courts if necessary.
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1. Parties: Identification of the Landlord and Tenant with full legal names, addresses, and official ID numbers
2. Background: Context of the original lease agreement, rent payment history, and current outstanding amounts
3. Definitions: Key terms used throughout the agreement including Property, Outstanding Amount, Payment Plan, and Original Lease
4. Acknowledgment of Debt: Tenant's formal acknowledgment of the outstanding rent amount and calculation method
5. Payment Plan: Detailed schedule of installment payments including amounts and due dates
6. Method of Payment: Specified payment methods and account details for transfers
7. Default Provisions: Consequences of failing to meet the payment plan commitments
8. Effect on Original Lease: Clarification that other terms of the original lease remain in force
9. Governing Law and Jurisdiction: Confirmation that Saudi law governs the agreement and specification of competent courts
1. Security Deposit Adjustment: Additional security deposit requirements if applicable
2. Guarantor Provisions: Terms regarding a guarantor if required for the payment plan
3. Property Maintenance Conditions: Any special maintenance terms linked to the payment plan
4. Early Payment Provisions: Terms for early repayment of the outstanding amount
5. Dispute Resolution: Alternative dispute resolution procedures before court action
6. Force Majeure: Provisions for unexpected events affecting payment ability
1. Schedule 1 - Payment Schedule: Detailed breakdown of payment dates, amounts, and running balance
2. Schedule 2 - Outstanding Amount Calculation: Detailed calculation of the total outstanding amount including any permitted charges
3. Appendix A - Copy of Original Lease: Reference copy of the original lease agreement
4. Appendix B - Payment History: Record of previous payments and missed payments
5. Appendix C - Communication Records: Documentation of formal communications regarding late payments
Relevant legal definitions
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Residential Property
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Relevant Teams
Legal
Real Estate
Property Management
Finance
Operations
Asset Management
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Administration
Relevant Roles
Property Manager
Real Estate Manager
Legal Counsel
Lease Administrator
Asset Manager
Facilities Manager
Collections Manager
Real Estate Director
Compliance Officer
Finance Manager
Operations Manager
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