Document background
The Property Licence Agreement serves as a crucial legal instrument in the UAE real estate market, providing a flexible alternative to traditional leasing arrangements. This document is commonly used when a property owner wishes to grant temporary usage rights without creating a full tenancy relationship, particularly common in commercial, retail, and shared workspace scenarios. The agreement must comply with UAE federal laws and specific emirate regulations, particularly in Dubai and Abu Dhabi where distinct property laws exist. It typically includes detailed provisions for property usage, maintenance responsibilities, fee structures, and termination rights, while often incorporating specific requirements for property registration and licensing in accordance with local municipality regulations. The Property Licence Agreement is particularly valuable for short-term or flexible property arrangements, pop-up retail spaces, shared facilities, or when traditional lease arrangements are not suitable or desired.
