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Long Term Lease Agreement for Saudi Arabia

Long Term Lease Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes the terms and conditions for the long-term lease of real property. This document complies with both Shariah principles and Saudi civil law requirements, including mandatory registration on the Ejar platform. It covers essential elements such as rent payment terms, maintenance obligations, permitted use, service charges, and specific provisions required under Saudi jurisdiction. The agreement incorporates necessary provisions for commercial or residential use, ensuring compliance with local municipality regulations and addressing specific requirements for foreign tenants where applicable.

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What is a Long Term Lease Agreement?

The Long Term Lease Agreement is a crucial document used in Saudi Arabia for establishing extended tenancy arrangements, typically exceeding one year in duration. This agreement is essential for businesses seeking stable operational premises or individuals requiring long-term residential accommodation. It must comply with Saudi Arabia's comprehensive regulatory framework, including the Saudi Lease Law (Royal Decree M/61), Shariah principles, and registration requirements on the Ejar platform. The document addresses key aspects such as rent payments, maintenance responsibilities, permitted use, and dispute resolution mechanisms, while incorporating specific provisions required by Saudi law. It is particularly relevant for commercial enterprises establishing operations in Saudi Arabia, property investors, and residential tenants seeking extended lease terms. The agreement must be structured to account for local business practices, religious observances, and cultural considerations specific to the Saudi Arabian market.

What sections should be included in a Long Term Lease Agreement?

1. Parties: Identification of landlord and tenant with full legal names and details as required by Saudi law

2. Background: Context of the lease arrangement and property description

3. Definitions and Interpretation: Key terms used throughout the agreement, including Arabic translations of critical terms

4. Demise and Term: Property description, lease duration, and commencement date

5. Rent and Payment Terms: Rent amount, payment schedule, and method of payment

6. Security Deposit: Amount, payment terms, and conditions for return

7. Tenant's Covenants: Primary obligations of the tenant including maintenance, use restrictions, and compliance with laws

8. Landlord's Covenants: Primary obligations of the landlord including property maintenance and insurance

9. Insurance Requirements: Required insurance coverage for both parties

10. Property Maintenance and Repairs: Responsibilities for maintenance, repairs, and replacements

11. Utilities and Services: Responsibility for utility connections, payments, and service charges

12. Assignment and Subletting: Restrictions and conditions for transfer of lease rights

13. Termination Rights: Circumstances allowing early termination and procedures

14. Default and Remedies: Events of default and available remedies

15. Handback Conditions: Requirements for property condition upon lease end

16. Notices: Communication procedures and contact details

17. Governing Law and Jurisdiction: Application of Saudi law and dispute resolution procedures

18. General Provisions: Standard boilerplate clauses including force majeure and severability

What sections are optional to include in a Long Term Lease Agreement?

1. Service Charges: Details of service charge calculations and payments - required for commercial properties or managed residential complexes

2. Fit-out Works: Requirements and conditions for initial tenant improvements - needed when premises require modification

3. Operating Hours: Restrictions on operating hours - required for commercial properties

4. Trading Requirements: Specific requirements for commercial operations - needed for retail premises

5. Green Lease Provisions: Environmental and sustainability requirements - optional for modern commercial buildings

6. Break Rights: Options for early termination - included when specifically negotiated

7. Rent Review: Mechanisms for rent adjustment during the term - optional for longer leases

8. Religious Observance: Provisions regarding prayer times and religious holidays - required for commercial properties

What schedules should be included in a Long Term Lease Agreement?

1. Property Description: Detailed description of the leased premises including plans and photographs

2. Rent Payment Schedule: Detailed breakdown of rent payments and due dates

3. Service Charge Budget: Estimated annual service charges and calculation methodology

4. Fit-out Specifications: Technical requirements for any permitted tenant improvements

5. Building Rules and Regulations: Specific rules governing the use of the property

6. Handover Condition Report: Documentation of property condition at lease commencement

7. Permitted Use Requirements: Detailed specifications of allowed property usage

8. Form of Bank Guarantee: Required format for any bank guarantees

9. Municipality Permits: Copies of relevant permits and licenses

10. Ejar Registration Requirements: Documentation required for mandatory Ejar platform registration

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

Jurisdiction

Saudi Arabia

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

Warehousing

Banking and Financial Services

Technology

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Risk Management

Property Management

Asset Management

Commercial

Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Corporate Lawyer

Chief Financial Officer

Operations Director

Compliance Officer

Risk Manager

Business Development Manager

Asset Manager

Leasing Manager

Contract Administrator

General Manager

Chief Executive Officer

Commercial Director

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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