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Master Lease Agreement Template for United Arab Emirates

A comprehensive legal framework agreement governed by UAE law that establishes the general terms and conditions for multiple lease transactions between parties. This document serves as an umbrella agreement under which specific lease schedules can be executed, streamlining the process for recurring or multiple lease arrangements. It incorporates UAE-specific legal requirements, including Civil Code provisions and relevant emirate-specific regulations, while providing flexibility to accommodate various types of assets and leasing arrangements. The agreement addresses key aspects such as payment terms, maintenance obligations, default procedures, and dispute resolution mechanisms in accordance with UAE legal standards.

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What is a Master Lease Agreement?

The Master Lease Agreement serves as a foundational document for organizations engaging in multiple lease transactions within the UAE legal framework. This agreement is particularly valuable for businesses managing numerous leased assets or properties, as it eliminates the need to negotiate separate terms for each transaction. The document establishes standardized conditions while complying with UAE Civil Code requirements and relevant emirate-specific regulations. It typically includes provisions for entering into individual lease schedules, handling security deposits, maintaining assets, and resolving disputes. The Master Lease Agreement is designed to accommodate various types of assets, from real estate to equipment, and can be customized to address specific industry requirements while maintaining consistency with UAE legal standards.

What sections should be included in a Master Lease Agreement?

1. Parties: Identification of lessor and lessee with full legal names, addresses, and registration details as required under UAE law

2. Background: Context of the master lease arrangement and general commercial intent of the parties

3. Definitions: Comprehensive definitions of terms used throughout the agreement, including UAE-specific legal and commercial terms

4. Scope of Agreement: Framework for multiple lease transactions and relationship between master agreement and individual lease schedules

5. Lease Term and Renewal: Duration of master agreement, process for entering into individual leases, and renewal provisions

6. Rent and Payment Terms: General provisions for rent determination, payment methods, and timing requirements

7. Security Deposit: Requirements and conditions for security deposits, including handling and return

8. Maintenance and Repairs: Allocation of responsibilities for maintenance, repairs, and improvements

9. Insurance Requirements: Mandatory insurance coverage and responsibilities of each party

10. Default and Remedies: Events of default, cure periods, and available remedies under UAE law

11. Termination: Grounds for termination and consequences thereof

12. Governing Law and Jurisdiction: Application of UAE law and specification of jurisdiction for dispute resolution

13. Notices: Format and method of delivering formal communications between parties

14. Boilerplate Provisions: Standard clauses including severability, entire agreement, and amendments

What sections are optional to include in a Master Lease Agreement?

1. Sharia Compliance: Required when parties wish to ensure agreement adheres to Islamic finance principles

2. Free Zone Provisions: Needed when leased property is located within UAE free zones

3. Assignment and Subletting: Include when parties want flexibility to transfer rights or allow subletting

4. Force Majeure: Detailed provisions for unforeseen events, particularly relevant post-COVID

5. Environmental Compliance: Required for properties where environmental regulations are significant

6. Property Management: Include when lessor provides additional property management services

7. Fit-out Provisions: Needed when premises require substantial tenant improvements

8. Multiple Currency Provisions: Include when leases may be denominated in different currencies

What schedules should be included in a Master Lease Agreement?

1. Schedule 1 - Form of Individual Lease: Template for individual lease agreements under the master agreement

2. Schedule 2 - Property Details: Standard format for describing leased properties and their specifications

3. Schedule 3 - Rent Calculation: Methodology and formulas for determining rent for different property types

4. Schedule 4 - Service Charges: List of service charges and calculation methods

5. Schedule 5 - Permitted Use: Detailed specifications of allowed uses for different property types

6. Schedule 6 - Handover Condition: Standard requirements for property condition at handover

7. Appendix A - Required Insurance: Detailed insurance requirements and minimum coverage

8. Appendix B - Maintenance Standards: Specific maintenance and repair standards

9. Appendix C - Reporting Requirements: Templates and requirements for periodic reporting

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Document Type

Lease Agreement

Cost

Free to use

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