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Sublease Agreement for United Arab Emirates

Sublease 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 both federal UAE property laws and specific emirate-level regulations, particularly those in Dubai and Abu Dhabi. It details the rights and obligations of all parties, including rent payments, maintenance responsibilities, and usage restrictions, while ensuring alignment with the original master lease agreement and obtaining necessary landlord approvals.

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Sublease Agreement

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What is a Sublease Agreement?

The Sublease Agreement is a crucial document in the UAE real estate market, used when an existing tenant wishes to lease all or part of their rented property to another party. This arrangement is common in both commercial and residential contexts, particularly in dynamic markets like Dubai and Abu Dhabi. The document must strictly comply with UAE federal property laws and relevant emirate-specific regulations, including obtaining necessary approvals from the superior landlord. The agreement comprehensively covers essential elements such as property details, term duration, rent payments, maintenance responsibilities, and usage restrictions. It's particularly important in commercial settings where businesses need flexibility in their property arrangements or in residential scenarios where temporary relocation is necessary. The document ensures all parties' rights are protected while maintaining compliance with the original master lease terms.

What sections should be included in a Sublease Agreement?

1. Parties: Identification of the main parties: Sub-lessor (current tenant), Sub-lessee, and acknowledgment of the Superior Landlord

2. Background: Context of the sublease, including reference to the master lease and confirmation of authority to sublease

3. Definitions: Key terms used throughout the agreement, including Property, Term, Permitted Use, and Rent

4. Grant of Sublease: Formal grant of the sublease and specification of the subleased premises

5. Term: Duration of the sublease, including start and end dates, ensuring it falls within the master lease period

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

7. Service Charges and Utilities: Responsibility for utility payments, service charges, and maintenance costs

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

9. Maintenance and Repairs: Responsibilities for maintaining and repairing the property

10. Sub-lessee's Covenants: Sub-lessee's obligations including compliance with master lease terms

11. Sub-lessor's Covenants: Sub-lessor's obligations and warranties

12. Insurance: Required insurance coverage and responsibilities

13. Assignment and Further Subletting: Restrictions on further assignment or subletting

14. Termination: Grounds for termination and procedures

15. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction

16. Notices: Method and addresses for formal communications

17. Execution: Signature blocks and execution requirements

What sections are optional to include in a Sublease Agreement?

1. Fit-out Works: Include when the sub-lessee is permitted to make alterations or improvements

2. Break Clause: Include when early termination options are allowed

3. Share of Common Areas: Include for commercial properties with shared facilities

4. Property Management: Include when specific management arrangements are needed

5. VAT and Taxes: Include when VAT applies to the rental payments

6. Operating Hours: Include for commercial properties with specific operating restrictions

7. Parking: Include when parking spaces are part of the sublease

8. Force Majeure: Include when specific provisions for unforeseen circumstances are required

What schedules should be included in a Sublease Agreement?

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

2. Schedule 2 - Master Lease: Copy or relevant excerpts of the master lease agreement

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

4. Schedule 4 - Condition Report: Documentation of property condition at commencement

5. Schedule 5 - House Rules: Building rules and regulations if applicable

6. Schedule 6 - Fit-out Guidelines: Technical specifications for any permitted alterations

7. Appendix A - Superior Landlord's Consent: Written consent from the superior landlord for the sublease

8. Appendix B - Service Charge Schedule: Breakdown of service charges and payment terms

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

Lease Agreement

Cost

Free to use
Relevant legal definitions




































Clauses






























Relevant Industries

Real Estate

Commercial Property

Retail

Hospitality

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Industrial

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Legal

Real Estate

Facilities Management

Operations

Commercial

Finance

Compliance

Risk Management

Administrative Services

Property Management

Corporate Services

Relevant Roles

Property Manager

Real Estate Manager

Facilities Manager

Legal Counsel

Contract Manager

Operations Director

Commercial Director

Real Estate Agent

Leasing Manager

Asset Manager

Property Administrator

Business Development Manager

Compliance Officer

Risk Manager

Corporate Services Manager

Industries








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