The Business Sublease Agreement is essential in the UAE commercial property market where businesses frequently need to sublease space to optimize their property utilization. This document is specifically used when a current tenant wishes to lease all or part of their rented premises to another business entity. It must carefully balance the rights and obligations of the sublandlord and subtenant while ensuring compliance with the master lease and UAE property laws. The agreement includes crucial elements such as premises details, term length, rental payments, permitted use, and maintenance responsibilities. Given the UAE's strict regulatory environment, particularly in emirates like Dubai and Abu Dhabi, the agreement must incorporate specific local requirements, including RERA regulations and municipality guidelines. This document is particularly relevant in commercial zones and free zones where business subleasing is common.
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1. Parties: Identification of the Sublandlord (current tenant) and Subtenant, including full legal names, commercial license numbers, and registered addresses
2. Background: Context of the sublease arrangement, including reference to the master lease and confirmation of authority to sublease
3. Definitions: Key terms used throughout the agreement, including 'Premises', 'Master Lease', 'Term', 'Permitted Use', etc.
4. Grant of Sublease: Formal grant of the sublease, specifically describing the premises and any included facilities or services
5. Term and Renewal: Duration of the sublease, commencement date, expiry date, and any renewal options
6. Rent and Payment Terms: Rent amount, payment schedule, security deposit, and other financial obligations
7. Use of Premises: Permitted business activities and restrictions on use
8. Maintenance and Repairs: Responsibilities for maintaining and repairing the premises
9. Utilities and Services: Allocation of responsibility for utilities, services, and related costs
10. Insurance and Liability: Required insurance coverage and allocation of risks
11. Assignment and Further Subletting: Restrictions on further assignment or subletting
12. Default and Remedies: Events of default and available remedies
13. Termination: Grounds for termination and the process thereof
14. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction for disputes
1. Fit-out Works: Include when the subtenant is permitted to make modifications to the premises
2. Service Charges: Include when there are separate service charges in addition to rent
3. Common Areas: Include when the premises is part of a larger building or complex with shared facilities
4. Operating Hours: Include when there are specific restrictions on business hours
5. Environmental Obligations: Include for premises where environmental compliance is significant
6. Parking: Include when specific parking rights are part of the sublease
7. Signage Rights: Include when exterior or interior signage rights are granted
8. Force Majeure: Include specific provisions for unforeseen circumstances affecting the premises or business operations
1. Schedule 1 - Premises Plan: Detailed floor plan and measurements of the subleased premises
2. Schedule 2 - Master Lease: Copy or relevant excerpts of the master lease agreement
3. Schedule 3 - Rent Schedule: Detailed breakdown of rent payments, including any escalations
4. Schedule 4 - Service Charges: Breakdown of service charges and calculation method
5. Schedule 5 - Fit-out Specifications: Approved alterations and technical specifications
6. Schedule 6 - Handover Condition: Detailed inventory and condition report of the premises
7. Schedule 7 - Building Rules: Applicable building rules and regulations
8. Appendix A - Required Permits: List of required governmental and regulatory permits
9. Appendix B - Insurance Requirements: Detailed insurance requirements and minimum coverage levels
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