The Lease & License Agreement is a fundamental document in UAE real estate transactions, essential for both commercial and residential property dealings. It serves as a comprehensive legal framework that not only establishes the traditional landlord-tenant relationship but also incorporates necessary licensing provisions required under UAE law. This document is particularly important in the UAE context where property usage often requires specific permits and licenses, especially in commercial and regulated zones. The agreement must comply with federal legislation including the UAE Civil Code, as well as specific emirate-level property laws and RERA regulations. It is commonly used when leasing commercial spaces, retail units, industrial facilities, or residential properties, particularly in cases where specific usage permissions or operating licenses need to be integrated with the lease terms.
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1. Parties: Identification of the Landlord and Tenant with full legal names, licenses/registration numbers, and authorized signatories
2. Background: Brief context of the lease arrangement and property ownership status
3. Definitions: Key terms used throughout the agreement including Property, Commencement Date, Term, License, etc.
4. Grant of Lease: Formal grant of lease and permitted use of the property
5. Term and Renewal: Duration of lease, commencement date, expiry date, and renewal terms
6. Rent and Payment Terms: Rent amount, payment schedule, security deposit, and payment method
7. Service Charges: Details of additional charges, utilities, maintenance fees, and DEWA charges
8. Tenant Obligations: Responsibilities including maintenance, repairs, compliance with laws, and permitted use
9. Landlord Obligations: Responsibilities including structural maintenance, insurance, and property access
10. Insurance: Required insurance coverage for both parties
11. Assignment and Subletting: Restrictions on transfer of lease rights
12. Termination: Grounds for termination, notice requirements, and consequences
13. Handback: Conditions for returning the property at lease end
14. Notices: Communication methods and contact details
15. Governing Law and Jurisdiction: UAE law application and dispute resolution mechanism
1. Fit-Out Works: Include when tenant is permitted to conduct improvement works, specifying approval process and conditions
2. Trading License Requirements: Include for commercial properties requiring specific licenses
3. Break Clause: Include when early termination options are negotiated
4. Force Majeure: Include detailed force majeure provisions for longer term leases
5. Exclusivity: Include for retail spaces with specific trade restrictions
6. Green Lease Provisions: Include for properties with sustainability requirements
7. Parking Rights: Include when specific parking arrangements are part of the lease
8. Signage Rights: Include for commercial properties requiring external signage
9. Operating Hours: Include for retail or commercial properties in managed buildings
1. Property Description: Detailed description of premises including floor plans and area calculations
2. Rent Schedule: Detailed breakdown of rent payments, escalations, and due dates
3. Service Charge Schedule: Itemized list of service charges and calculation methodology
4. Condition Report: Documentation of property condition at lease commencement
5. Building Rules and Regulations: Specific rules applicable to the property or building
6. Fit-out Guidelines: Technical specifications and requirements for any permitted modifications
7. Handover Protocol: Checklist and procedures for property handover
8. Permitted Use Schedule: Detailed description of allowed activities and operations
9. Insurance Requirements: Specific insurance coverage requirements and minimum values
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Retail
Commercial Office
Industrial
Hospitality
Healthcare
Education
Manufacturing
Logistics
Financial Services
Technology
Food & Beverage
Professional Services
Telecommunications
Media & Entertainment
Relevant Teams
Legal
Real Estate
Facilities Management
Operations
Finance
Procurement
Compliance
Risk Management
Corporate Services
Administration
Property Management
Relevant Roles
Real Estate Manager
Property Manager
Facilities Manager
Legal Counsel
Compliance Officer
Operations Director
Chief Financial Officer
Commercial Director
Procurement Manager
Business Development Manager
Asset Manager
Leasing Manager
Corporate Services Manager
Risk Manager
General Counsel
Contract Administrator
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