The Lease & License Agreement is a specialized legal instrument used in Saudi Arabia when parties need to combine property occupation rights with specific licensed activities or operations. This document is particularly relevant for commercial and retail operations where the tenant requires both physical space and operational rights. It must comply with Saudi Arabian real estate laws, commercial regulations, and Sharia principles, while being registered on the ETIMAD platform for enforceability. The agreement typically includes detailed provisions for both the lease aspects (such as rent, maintenance, and property use) and license elements (such as permitted activities, operational requirements, and commercial rights), making it suitable for shopping centers, commercial complexes, branded operations, and specialized facilities.
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1. Parties: Identification of the Lessor/Licensor and Lessee/Licensee with full legal names and details as required under Saudi law
2. Background: Context of the agreement, property description, and purpose of the lease and license arrangement
3. Definitions and Interpretation: Key terms used in the agreement, including property, permitted use, license rights, and other relevant definitions
4. Grant of Lease: Terms of the lease, including property description, duration, and permitted use
5. Grant of License: Scope of license rights, permitted activities, and any restrictions
6. Rent and License Fees: Payment terms, amounts, payment schedule, and review mechanisms
7. Security Deposit: Amount, payment terms, and conditions for return
8. Maintenance and Repairs: Responsibilities of each party for property maintenance and repairs
9. Utilities and Services: Responsibility for utilities, services, and related charges
10. Insurance: Required insurance coverage for both parties
11. Compliance with Laws: Obligations to comply with Saudi laws, regulations, and Sharia principles
12. Assignment and Subletting: Restrictions and conditions for transfer of rights
13. Termination: Grounds for termination, notice requirements, and consequences
14. Governing Law and Dispute Resolution: Application of Saudi law and dispute resolution mechanisms
1. Fit-out Works: Include when tenant improvements or modifications are permitted, specifying approval process and conditions
2. Trading Requirements: Include for retail properties, specifying trading hours and operational requirements
3. Service Charge: Include for properties in commercial complexes with shared facilities
4. Green Lease Provisions: Include for properties with sustainability requirements or certifications
5. Force Majeure: Include specific force majeure provisions beyond standard terms
6. Operating Requirements: Include for specific business types requiring special operational conditions
7. Guarantees: Include when corporate or personal guarantees are required
8. Change of Control: Include for corporate tenants where ownership changes need to be regulated
1. Property Description: Detailed description of the leased property including plans and specifications
2. Rent and Payment Schedule: Detailed breakdown of rent, license fees, and payment dates
3. Permitted Use: Detailed description of permitted activities and use restrictions
4. Service Level Agreement: Details of services to be provided and service standards
5. Fit-out Guidelines: Technical specifications and requirements for any permitted modifications
6. House Rules: Building rules and regulations for multi-tenant properties
7. Form of Bank Guarantee: Standard format for any required bank guarantees
8. Handover Protocol: Checklist and procedure for property handover
9. Insurance Requirements: Detailed insurance requirements and minimum coverage levels
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Retail
Commercial Office
Industrial
Hospitality
Healthcare
Education
Logistics
Manufacturing
Technology
Financial Services
Professional Services
Entertainment
Food & Beverage
Relevant Teams
Legal
Real Estate
Operations
Finance
Compliance
Facilities Management
Commercial
Risk Management
Property Management
Asset Management
Business Development
Administration
Relevant Roles
Real Estate Manager
Property Manager
Legal Counsel
Commercial Director
Facilities Manager
Operations Manager
Chief Financial Officer
Business Development Manager
Compliance Officer
Asset Manager
Leasing Manager
Contract Administrator
Risk Manager
General Counsel
Commercial Lease Administrator
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