The Dissolution Of Lease Agreement is a crucial document used when parties to a lease in Saudi Arabia mutually agree to terminate their rental arrangement before the original end date, or when documenting the formal end of a lease term. This document ensures compliance with Saudi Arabian law, including the Saudi Lease Law and Sharia principles, while protecting both parties' interests. It becomes necessary when circumstances require early termination, such as business relocations, property sales, or mutual agreement to end the lease. The agreement includes essential elements such as financial settlements, property handover procedures, and mutual releases, all documented in accordance with Saudi legal requirements and the Ejar electronic registration system. It serves as official evidence of the lease termination and helps prevent future disputes by clearly outlining the terms of dissolution.
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1. Parties: Identification of the Landlord and Tenant with full legal names and contact details as registered in Saudi Arabia
2. Background: Details of the original lease agreement including date, property details, and reference to registration in the Ejar system
3. Definitions: Key terms used in the agreement including 'Termination Date', 'Settlement Amount', 'Property', and other relevant terms
4. Mutual Agreement to Terminate: Clear statement of both parties' agreement to dissolve the lease and the effective termination date
5. Settlement of Obligations: Details of all financial settlements including rent, utilities, maintenance charges, and security deposit return
6. Property Handover: Terms and conditions for returning the property, including condition requirements and inspection procedures
7. Release and Discharge: Mutual release from future obligations under the original lease agreement
8. Governing Law: Confirmation that the agreement is governed by Saudi Arabian law and Sharia principles
9. Execution: Signature requirements and execution details compliant with Saudi Arabian legal requirements
1. Outstanding Repairs: Used when there are specific repair obligations to be settled before termination
2. Third Party Rights: Include when there are sub-tenants or other third-party interests to be addressed
3. Confidentiality: Added when parties wish to keep the terms of dissolution private
4. Dispute Resolution: Include when parties want to specify specific dispute resolution mechanisms
5. Surviving Obligations: Used when certain obligations need to continue after termination
6. Tax Implications: Include when there are specific tax considerations to be addressed
7. Insurance Matters: Added when there are outstanding insurance claims or requirements
1. Schedule 1 - Property Inspection Report: Detailed report on the current condition of the property and any damage assessment
2. Schedule 2 - Financial Settlement Statement: Detailed breakdown of all financial settlements including rent, deposits, and deductions
3. Schedule 3 - Utility Accounts Settlement: List of utility accounts and their status of transfer or termination
4. Schedule 4 - Handover Inventory: List of items to be returned with the property and their condition
5. Appendix A - Original Lease Agreement: Copy of the original lease agreement being terminated
6. Appendix B - Property Photographs: Current dated photographs of the property condition
7. Appendix C - Municipal Clearances: Any required municipal or governmental clearances for lease termination
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