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Basic Commercial Lease Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Basic Commercial Lease Agreement

"I need a Basic Commercial Lease Agreement for a retail space in Dubai Mall, with a 3-year term starting January 1, 2025, that includes specific provisions for operating hours matching mall timings and detailed fit-out requirements for a luxury boutique."

Document background
The Basic Commercial Lease Agreement is a fundamental legal instrument used in the United Arab Emirates for establishing commercial tenancy relationships. This document is essential for businesses seeking to lease commercial space in the UAE and must comply with federal legislation (primarily UAE Civil Code - Federal Law No. 5 of 1985) as well as specific emirate-level property laws. The agreement covers crucial aspects including rent terms, maintenance obligations, permitted commercial activities, and dispute resolution mechanisms while ensuring compliance with local registration requirements (such as RERA in Dubai). It serves as a primary document for commercial property transactions in the UAE market and is typically required for business licensing, bank accounts, and other commercial operations. The Basic Commercial Lease Agreement must be structured to accommodate both local and international business practices while maintaining alignment with UAE's legal framework and commercial property regulations.
Suggested Sections

1. Parties: Details of the Landlord and Tenant, including full legal names, license numbers, and authorized representatives

2. Background: Context of the lease agreement and brief description of the premises

3. Definitions: Definitions of key terms used throughout the agreement

4. Demised Premises: Detailed description of the leased property, including location, size, and permitted use

5. Term and Renewal: Duration of the lease, commencement date, expiry date, and renewal terms

6. Rent and Payment Terms: Rent amount, payment schedule, security deposit, and method of payment

7. Service Charges: Additional charges for maintenance, utilities, and common area services

8. Use of Premises: Permitted commercial activities and restrictions on use

9. Maintenance and Repairs: Responsibilities of both parties regarding maintenance and repairs

10. Alterations and Improvements: Rules regarding modifications to the premises

11. Insurance: Required insurance coverage for both parties

12. Landlord's Covenants: Obligations and warranties of the landlord

13. Tenant's Covenants: Obligations and warranties of the tenant

14. Termination: Conditions and procedures for early termination

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

16. Governing Law and Jurisdiction: Applicable UAE laws and jurisdiction for dispute resolution

Optional Sections

1. Break Clause: Optional provision allowing early termination under specific conditions

2. Fit-out Works: Specific terms for initial tenant improvements and fit-out period

3. Assignment and Subletting: Terms for transferring or subletting the premises, if permitted

4. Force Majeure: Provisions for unforeseen circumstances affecting lease obligations

5. Exclusivity Clause: Restrictions on landlord leasing to competing businesses

6. Option to Purchase: Terms giving tenant the right to purchase the property

7. Green Lease Provisions: Environmental and sustainability requirements

8. Covid-19 Provisions: Specific terms addressing pandemic-related disruptions

Suggested Schedules

1. Schedule 1 - Property Plan: Detailed floor plan and measurements of the premises

2. Schedule 2 - Inventory: List of fixtures, fittings, and equipment included in the lease

3. Schedule 3 - Service Charge Details: Breakdown of service charges and calculation method

4. Schedule 4 - Fit-out Specifications: Technical requirements for any permitted alterations

5. Schedule 5 - Building Rules: Rules and regulations for the building or complex

6. Appendix A - Registration Documents: Copies of required municipality and RERA registration documents

7. Appendix B - Handover Protocol: Procedure and checklist for property handover

8. Appendix C - Maintenance Schedule: Schedule of regular maintenance responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses






























Relevant Industries

Retail

Office Space

Hospitality

Industrial

Warehousing

Manufacturing

Professional Services

Healthcare

Education

Technology

Food and Beverage

Entertainment

Financial Services

Logistics

Commercial Real Estate

Relevant Teams

Legal

Finance

Operations

Facilities Management

Real Estate

Administration

Risk and Compliance

Procurement

Business Development

Property Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

Real Estate Manager

Facilities Manager

Legal Counsel

Property Manager

Business Development Manager

Operations Director

Finance Director

Commercial Director

Procurement Manager

Contract Manager

Risk Manager

Compliance Officer

Real Estate Director

Branch Manager

Store Manager

General Manager

Administrative Manager

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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