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Sub Lease Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes the terms and conditions under which a tenant (Sub-Lessor) leases all or part of their rented property to another party (Sub-Lessee). The agreement must comply with UAE Federal Laws and specific Emirate-level regulations, particularly those concerning real estate and property rental. It details the rights, obligations, and responsibilities of all parties involved, including rent payments, maintenance obligations, permitted use, and term duration, while ensuring alignment with the original head lease terms.

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What is a Sub Lease Agreement?

The Sub Lease Agreement is a critical document used when an existing tenant wishes to lease all or part of their rented property to another party in the UAE. This arrangement must comply with both UAE Federal Laws and specific Emirate-level regulations governing real estate transactions. The document becomes necessary when businesses need to optimize their space usage, reduce rental costs, or accommodate changing space requirements. The Sub Lease Agreement must explicitly reference and align with the original head lease terms, include all necessary approvals from the head lessor, and comply with local registration requirements. It typically covers aspects such as rental payments, maintenance responsibilities, permitted use, insurance requirements, and term duration, while ensuring all parties' rights and obligations are clearly defined under UAE law.

What sections should be included in a Sub Lease Agreement?

1. Parties: Identification of the Head Lessor, Sub-Lessor and Sub-Lessee with full legal names and details

2. Background: Context of the sub-lease, including reference to the head lease and confirmation of authority to sub-lease

3. Definitions: Definitions of key terms used throughout the agreement

4. Grant of Sub-Lease: Formal grant of the sub-lease and specification of the premises

5. Term and Commencement: Duration of the sub-lease and commencement date, ensuring it doesn't exceed head lease term

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

7. Security Deposit: Amount, payment terms, and conditions for return of the security deposit

8. Use of Premises: Permitted use of the premises and any restrictions

9. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements

10. Utilities and Services: Responsibility for utilities, services, and related charges

11. Insurance: Insurance requirements for both sub-lessor and sub-lessee

12. Assignment and Further Sub-Letting: Restrictions on assignment and further sub-letting

13. Default and Remedies: Events of default and available remedies

14. Termination: Grounds for termination and termination procedure

15. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant jurisdiction

16. Execution: Signature blocks and execution formalities

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

1. Fit-Out Works: Include when the sub-lessee is permitted to carry out modifications or improvements

2. Service Charges: Include when there are additional service charges beyond the base rent

3. Parking: Include when parking spaces are part of the sub-lease

4. Common Areas: Include when the premises are part of a larger building or complex with shared facilities

5. Break Clause: Include when early termination options are permitted

6. Force Majeure: Include when specific force majeure provisions are required beyond standard UAE law

7. Property Management: Include when specific property management arrangements need to be detailed

8. VAT: Include when VAT provisions need to be specifically addressed

What schedules should be included in a Sub Lease Agreement?

1. Schedule 1 - Property Description: Detailed description of the premises including floor plans and measurements

2. Schedule 2 - Head Lease: Copy or key terms of the head lease

3. Schedule 3 - Rent Payment Schedule: Detailed breakdown of rent payments and due dates

4. Schedule 4 - Condition Report: Description of the condition of the premises at commencement

5. Schedule 5 - Building Rules: Any applicable building rules or regulations

6. Schedule 6 - Fit-Out Specifications: Details of any permitted modifications or improvements

7. Schedule 7 - Service Charges: Breakdown of service charges if applicable

8. Appendix A - Required Permits: Copies of relevant permits and approvals

9. Appendix B - Insurance Requirements: Detailed insurance requirements and specifications

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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