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Commercial Lease Termination Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Commercial Lease Termination Agreement

"I need a Commercial Lease Termination Agreement under Saudi law for my retail company's early exit from a shopping mall lease in Riyadh, with termination planned for March 1, 2025, including provisions for renovation works and security deposit return."

Document background
The Commercial Lease Termination Agreement is a crucial document used in Saudi Arabia when parties wish to formally end their commercial lease arrangement before or at its natural conclusion. This document is essential for businesses operating under Saudi Arabian law, where commercial property relationships are governed by both Sharia principles and modern commercial regulations. It provides a comprehensive framework for addressing key termination aspects including property handover, financial settlements, and mutual releases. The agreement is particularly important in the Saudi context where formal documentation of commercial relationships is required for legal certainty and compliance with local regulations. It serves to protect both landlord and tenant interests while ensuring adherence to Saudi Arabian property and commercial laws.
Suggested Sections

1. Parties: Identification of the landlord and tenant, including their full legal names, addresses, and commercial registration details

2. Background: Brief description of the existing lease agreement, its key terms, and the circumstances leading to termination

3. Definitions: Definitions of key terms used throughout the agreement, including references to the original lease agreement

4. Termination Date: Specific date when the lease will be terminated and the tenant's occupation rights will cease

5. Handover Requirements: Detailed requirements for the condition of the premises upon return to the landlord

6. Settlement of Accounts: Financial settlement terms, including any outstanding rent, utilities, or other charges

7. Security Deposit: Terms for the return or application of the security deposit

8. Release and Waiver: Mutual release of claims related to the lease agreement

9. Confidentiality: Obligations regarding confidentiality of the termination agreement terms

10. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction for disputes

11. Execution: Signature requirements and execution formalities

Optional Sections

1. Early Termination Fee: Required when termination occurs before the natural end of the lease term

2. Restoration Works: Included when specific restoration or repair works are required before handover

3. Surviving Obligations: Used when certain lease obligations need to survive termination

4. Third Party Rights: Required when there are sublease agreements or third-party interests to address

5. Insurance Claims: Included when there are ongoing or potential insurance claims to be addressed

6. Marketing Rights: Used when the landlord requires early access for marketing the property

7. Holdover Provisions: Included when there's a possibility of delayed vacation of the premises

Suggested Schedules

1. Original Lease Agreement: Copy of the original lease agreement being terminated

2. Handover Inspection Checklist: Detailed checklist for property inspection and condition assessment

3. Financial Statement: Statement of all outstanding amounts and financial settlements

4. Utility Accounts: List of utility accounts to be transferred or terminated

5. Inventory List: List of fixtures, fittings, and equipment to be returned or removed

6. Property Photographs: Current photographs documenting the condition of the premises

7. Handover Timeline: Schedule of key dates and deadlines for the termination process

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

Relevant legal definitions






























Clauses




























Relevant Industries

Real Estate

Retail

Commercial Property

Hospitality

Office Space

Industrial

Manufacturing

Warehousing

Healthcare

Education

Banking and Finance

Professional Services

Technology

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Corporate Services

Risk Management

Property Management

Contract Administration

Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Commercial Director

Operations Manager

Chief Financial Officer

Business Development Manager

Asset Manager

Compliance Officer

Corporate Services Manager

Leasing 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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