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Standard Commercial Lease Agreement for United Arab Emirates

Standard Commercial Lease Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes the terms and conditions for leasing commercial property in the United Arab Emirates. This agreement outlines the rights and obligations of both landlord and tenant, including rent payment terms, maintenance responsibilities, permitted use of the premises, and other essential commercial terms. It incorporates requirements from UAE Civil Code, local emirate regulations, and RERA guidelines, while providing a framework for managing the commercial tenancy relationship in compliance with UAE commercial property laws.

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Standard Commercial Lease Agreement

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What is a Standard Commercial Lease Agreement?

The Standard Commercial Lease Agreement is a fundamental document used in the United Arab Emirates for establishing legally binding commercial tenancy relationships. It serves as the primary instrument for documenting the lease of retail spaces, offices, warehouses, and other commercial properties across the UAE. This agreement must comply with Federal Law No. 5 of 1985 (UAE Civil Code), relevant emirate-specific property laws, and RERA regulations. The document typically includes detailed provisions for rent, maintenance, permitted use, service charges, and other commercial terms, while incorporating UAE-specific requirements such as EJARI registration. It's designed to protect both landlord and tenant interests while ensuring compliance with local commercial property regulations and market practices.

What sections should be included in a Standard Commercial Lease Agreement?

1. Parties: Identification of landlord and tenant with full legal names, licenses, and contact details as required by UAE law

2. Background: Context of the lease arrangement and brief description of the property

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

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

5. Term and Renewal: Duration of lease, commencement date, and renewal provisions

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

7. Service Charges: Additional charges for building maintenance, utilities, and common areas

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

9. Maintenance and Repairs: Responsibilities of landlord and tenant for maintenance and repairs

10. Insurance: Required insurance coverage and responsibilities

11. Assignment and Subletting: Conditions for transferring or subletting the premises

12. Termination: Grounds and procedures for early termination

13. Governing Law and Jurisdiction: Application of UAE law and dispute resolution procedures

What sections are optional to include in a Standard Commercial Lease Agreement?

1. Fit-out Works: Terms for tenant improvements and modifications, used when premises require initial fitting out

2. Break Clause: Early termination options, included when parties want flexibility to end lease early

3. Force Majeure: Provisions for unforeseen circumstances, particularly relevant post-COVID

4. Trading Name and Signage: Rules for business naming and signage, important for retail premises

5. Environmental Matters: Environmental compliance requirements, needed for industrial or specialized commercial use

6. Guarantees: Personal or corporate guarantees, used when additional security is required

7. VAT Provisions: Special VAT considerations, required if applicable to the lease

What schedules should be included in a Standard Commercial Lease Agreement?

1. Property Plan: Detailed floor plan and location maps of the premises

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

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

4. Building Rules and Regulations: Specific rules governing the use of the building and common areas

5. Fit-out Guidelines: Technical specifications and requirements for any tenant improvements

6. Handover Protocol: Condition report and handover procedures

7. EJARI Registration Requirements: Documentation required for mandatory EJARI registration

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 | Serial Founder & Legal AI Author

Document Type

Rental Agreement

Cost

Free to use
Relevant legal definitions








































Clauses































Relevant Industries

Retail

Office Space

Industrial

Warehousing

Food & Beverage

Healthcare

Education

Technology

Professional Services

Manufacturing

Logistics

Entertainment

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Risk Management

Property Management

Business Development

Procurement

Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Commercial Director

Operations Manager

Business Development Manager

Chief Financial Officer

Compliance Officer

Real Estate Director

Leasing Manager

Asset Manager

Contract Administrator

Risk 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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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