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Termination Of Lease Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Termination Of Lease Agreement

"I need a Termination of Lease Agreement for my commercial warehouse in Riyadh, with early termination effective March 1, 2025, including specific provisions for removing industrial equipment and settling outstanding utility payments."

Document background
The Termination of Lease Agreement is a crucial document used in Saudi Arabia when parties mutually agree to end their lease relationship or when termination occurs according to pre-agreed terms. This document is essential for both residential and commercial properties, ensuring compliance with Saudi Arabian property laws, the Civil Code, and Sharia principles. It typically includes specific details about the property, termination date, final settlements, and handover procedures. The agreement should be registered with the Ejar platform when required by local regulations and can be used for both early terminations and natural lease conclusions. This document helps prevent future disputes by clearly documenting the agreed terms of lease termination and final obligations of all parties involved.
Suggested Sections

1. Parties: Identification of the Landlord and Tenant, including their full legal names, addresses, and national ID/CR numbers as required under Saudi law

2. Background: Reference to the original lease agreement, its date, property details, and the basis for termination

3. Definitions: Key terms used in the agreement including Property, Termination Date, Original Lease, etc.

4. Termination Date: Specific date when the lease will terminate and the tenant will vacate the property

5. Handover Requirements: Conditions for returning the property, including cleaning, repairs, and removal of personal belongings

6. Security Deposit: Terms for the return of the security deposit, including deductions if any

7. Outstanding Payments: Settlement of any remaining rent, utilities, or other charges

8. Release of Obligations: Mutual release of future obligations under the original lease

9. Governing Law: Confirmation that the agreement is governed by Saudi Arabian law

Optional Sections

1. Early Termination Compensation: Required when termination occurs before the original lease end date, specifying any agreed compensation

2. Maintenance Issues: Used when there are specific maintenance or repair issues that need to be addressed before handover

3. Utilities Transfer: Required when utilities need to be transferred back to the landlord or cancelled

4. Key Return Protocol: Included when specific arrangements for key return and security access devices need to be detailed

5. Forwarding Address: Used when parties need to specify future contact details for post-termination communications

6. Dispute Resolution: Optional clause for specifying mediation or other dispute resolution procedures

Suggested Schedules

1. Property Inspection Report: Detailed report on the current condition of the property, including photographs

2. Outstanding Payments Schedule: Itemized list of any remaining payments or credits between parties

3. Utility Readings: Final readings for electricity, water, and other utilities

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

5. Handover Checklist: Detailed list of items to be checked during the final property inspection

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

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Relevant Industries

Real Estate

Residential Property

Commercial Property

Retail

Office Space

Industrial

Hospitality

Healthcare

Education

Logistics

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Administration

Compliance

Property Management

Asset Management

Corporate Services

Risk Management

Relevant Roles

Property Manager

Real Estate Manager

Facilities Manager

Legal Counsel

Corporate Real Estate Manager

Operations Director

Asset Manager

Leasing Manager

Administrative Manager

Compliance Officer

Real Estate Director

Tenant Relations Manager

Industries






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