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Sale Lease Back Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Sale Lease Back Agreement

"I need a Sale Lease Back Agreement for our manufacturing facility in Riyadh, where we'll sell the property to a Saudi investment firm but continue operating it for 15 years, with the deal to complete by March 2025 and include annual rent reviews linked to CPI."

Document background
The Sale Lease Back Agreement is a strategic transaction document used in Saudi Arabia when an entity wishes to liquidate its real estate assets while retaining operational control through a leaseback arrangement. This document type is particularly valuable for companies seeking to free up capital while maintaining business operations, or for those implementing Islamic-compliant financing structures. The agreement must carefully navigate Saudi Arabian legal requirements, including property transfer regulations and Shariah compliance principles. It typically includes comprehensive details about the property transfer, lease terms, maintenance responsibilities, and payment structures. The document must clearly demonstrate that the sale and leaseback are genuine, separate transactions rather than a disguised financing arrangement to ensure compliance with Islamic financial principles. This agreement type is commonly used in commercial real estate transactions, corporate restructuring, and Islamic finance arrangements within the Saudi Arabian jurisdiction.
Suggested Sections

1. Parties: Identification of the Seller/Lessee and Buyer/Lessor, including full legal names, registration details, and addresses

2. Background: Context of the transaction, including property overview and commercial intent of the arrangement

3. Definitions: Key terms used throughout the agreement, including Property, Completion Date, Lease Term, Rent, etc.

4. Sale Provisions: Terms of the sale transaction, including purchase price, payment terms, and completion mechanics

5. Property Transfer: Provisions regarding the transfer of title, registration requirements, and relevant documentation

6. Leaseback Terms: Core lease provisions including term, rent, payment schedule, and use of property

7. Representations and Warranties: Standard representations regarding ownership, authority, property condition, and compliance with Shariah principles

8. Property Maintenance and Repairs: Obligations regarding property upkeep, maintenance responsibilities, and improvement rights

9. Insurance and Risk: Insurance requirements, risk allocation, and property damage provisions

10. Default and Termination: Events of default, remedies, and termination rights for both sale and lease components

11. Governing Law and Dispute Resolution: Choice of Saudi law, jurisdiction, and dispute resolution mechanisms

12. Notices: Communication procedures and contact details for formal notices

13. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments

Optional Sections

1. Property Management: Required for complex commercial properties requiring specific management arrangements

2. Service Charges: Needed for properties in multi-tenant buildings or complexes with shared services

3. Subletting and Assignment: Include when the lessee requires rights to sublet or assign the lease

4. Break Options: Optional early termination rights for either party

5. Purchase Option: Right for lessee to repurchase the property under specified conditions

6. Environmental Compliance: Required for industrial properties or where environmental risks exist

7. Development Rights: Include if property development or major alterations are contemplated

8. Security Deposits: Include if additional security is required beyond rent payments

9. Zakat Provisions: Specific arrangements for Islamic tax obligations

10. Force Majeure: Extended provisions for force majeure events beyond standard terms

Suggested Schedules

1. Property Description: Detailed legal and technical description of the property, including plans and title details

2. Purchase Price and Payment Terms: Detailed breakdown of purchase price, payment schedule, and mechanics

3. Rent Schedule: Detailed rent payment terms, including amounts, payment dates, and review mechanisms

4. Condition Survey: Initial property condition report and inventory

5. Permitted Use: Detailed specifications of allowed property uses and restrictions

6. Service Level Requirements: Maintenance and service standards if applicable

7. Form of Transfer Documents: Templates for property transfer documentation

8. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

9. Initial Fit-out Specifications: Details of any agreed initial property modifications or improvements

10. Shariah Compliance Certificate: Confirmation of transaction structure's compliance with Islamic law principles

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

Banking & Financial Services

Manufacturing

Retail

Logistics & Warehousing

Healthcare

Education

Hospitality

Industrial

Commercial Property

Islamic Finance

Relevant Teams

Legal

Finance

Real Estate

Operations

Facilities Management

Risk & Compliance

Treasury

Corporate Development

Investment

Property Management

Relevant Roles

Chief Financial Officer

Real Estate Director

Property Manager

Legal Counsel

Finance Manager

Asset Manager

Facilities Manager

Investment Director

Corporate Treasurer

Shariah Compliance Officer

Real Estate Investment Manager

Operations Director

Risk Manager

Commercial Director

Property Development 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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