The Subtenant Lease agreement is utilized in situations where an existing tenant wishes to sublease all or part of their leased property to another party in the UAE. This document is essential for commercial and residential properties where the original tenant maintains their lease with the landlord while creating a new tenancy relationship with a subtenant. The agreement must comply with UAE federal laws and emirate-specific regulations, particularly regarding property registration and tenant rights. Key considerations include obtaining necessary landlord consent, ensuring compliance with head lease terms, and meeting local authority requirements such as RERA registration in Dubai. The document typically includes detailed provisions for rent payment, maintenance responsibilities, permitted use, and termination rights, all structured within the framework of UAE property law.
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1. Parties: Identification of the head tenant (as sublandlord) and subtenant, including Emirates ID numbers, trade license details for companies
2. Background: Details of head lease, permission to sublease, and context of the subleasing arrangement
3. Definitions: Key terms including Property, Head Lease, Permitted Use, Service Charges, etc.
4. Grant of Lease: Formal grant of sublease subject to terms of head lease and this agreement
5. Term and Renewal: Duration of sublease, renewal options, and relationship to head lease term
6. Rent and Payment Terms: Rent amount, payment schedule, security deposit, and payment methods as per UAE requirements
7. Service Charges and Utilities: Responsibility for utilities, maintenance fees, and service charges
8. Use of Property: Permitted use, restrictions, and compliance with head lease terms
9. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements
10. Insurance: Required insurance coverage and responsibilities
11. Compliance with Laws: Obligation to comply with UAE laws, regulations, and head lease terms
12. Default and Remedies: Events of default, remedies, and termination rights
13. Handover and Return: Condition requirements for property handover and return
14. Governing Law and Jurisdiction: UAE law as governing law and relevant emirate's courts' jurisdiction
1. Fit-out Works: Include when subtenant is permitted to perform initial fit-out works
2. Break Clause: Include when early termination rights are granted to either party
3. Guarantee: Include when personal or corporate guarantee is required from subtenant
4. Property Management: Include when specific property management arrangements apply
5. Parking: Include when parking spaces are allocated to the property
6. Common Areas: Include for properties in multi-unit developments with shared facilities
7. Assignment and Further Subletting: Include when transfer rights need to be specifically addressed
8. Force Majeure: Include when specific force majeure provisions are required beyond standard UAE law
1. Property Description: Detailed description of the subleased property including floor plans and area calculations
2. Head Lease Terms: Relevant excerpts or summary of head lease terms affecting subtenant
3. Rent Payment Schedule: Detailed breakdown of rent payments and due dates
4. Condition Report: Documentation of property condition at commencement of sublease
5. Building Rules: Applicable building rules and regulations
6. Fit-out Guidelines: Technical specifications and requirements for any permitted modifications
7. Service Charge Budget: Breakdown of service charges and allocation methodology
8. Handover Protocol: Procedures and requirements for property handover
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