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Commercial Rental Agreement for United Arab Emirates

Commercial Rental Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE federal and emirate-specific laws that establishes the terms and conditions for leasing commercial property in the United Arab Emirates. The agreement complies with Federal Law No. 5 of 1985 (Civil Code) and relevant emirate-specific rental regulations, outlining rights and obligations of both landlord and tenant, including rent payment terms, maintenance responsibilities, permitted use of premises, and other essential commercial terms. The document incorporates specific UAE commercial property requirements, local municipality regulations, and necessary provisions for business operation in the region.

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What is a Commercial Rental Agreement?

The Commercial Rental Agreement is essential for businesses seeking to lease commercial space in the United Arab Emirates. This document is specifically designed to comply with UAE federal laws, including the Civil Code (Federal Law No. 5 of 1985) and emirate-specific rental regulations. It's used when a business entity (tenant) wants to rent commercial space from a property owner (landlord) for business purposes such as office, retail, warehouse, or industrial use. The agreement covers crucial aspects including rent, duration, permitted use, maintenance obligations, and compliance with local commercial regulations. It includes specific provisions required by UAE law, such as registration with relevant authorities (like EJARI in Dubai) and adherence to local municipality requirements for commercial activities.

What sections should be included in a Commercial Rental Agreement?

1. Parties: Identification of landlord and tenant with full legal names, licenses, and contact details

2. Background: Brief context of the agreement and property ownership status

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

4. Property Details: Detailed description of the leased premises including location, size, and permitted use

5. Term and Renewal: Duration of lease, commencement date, and renewal terms

6. Rent and Payment Terms: Rent amount, payment schedule, method of payment, and late payment consequences

7. Security Deposit: Amount, payment terms, conditions for return, and permitted deductions

8. Utilities and Service Charges: Responsibility for utilities, service charges, and maintenance fees

9. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance and repairs

10. Tenant's Obligations: Complete list of tenant responsibilities including permitted use, compliance with laws, etc.

11. Landlord's Obligations: Complete list of landlord responsibilities including property access, insurance, etc.

12. Insurance: Required insurance coverage for both parties

13. Assignment and Subletting: Conditions and restrictions on assignment or subletting the premises

14. Termination: Grounds for termination, notice requirements, and consequences

15. Governing Law and Jurisdiction: Application of UAE law and jurisdiction for dispute resolution

16. Notices: Method and addresses for official communications between parties

What sections are optional to include in a Commercial Rental Agreement?

1. Fit-out Works: Details of any permitted modifications or improvements by tenant - include when premises require initial fitting out

2. Break Clause: Early termination options - include when parties want flexibility to end lease early

3. Force Majeure: Provisions for unforeseen circumstances - particularly relevant post-COVID

4. Change of Control: Provisions regarding change in tenant's ownership - relevant for corporate tenants

5. Service Level Agreement: Specific service standards for building maintenance - relevant for high-end commercial properties

6. Green Lease Provisions: Environmental and sustainability requirements - relevant for LEED-certified or similar buildings

7. Exclusivity Clause: Restrictions on leasing to competitors - relevant for retail premises

8. Option to Purchase: Tenant's right to purchase property - include when agreed between parties

What schedules should be included in a Commercial Rental Agreement?

1. Schedule 1 - Property Plan: Detailed floor plan and measurements of the leased premises

2. Schedule 2 - Inventory: List of fixtures, fittings, and equipment included in the lease

3. Schedule 3 - Service Charges: Breakdown of service charges and calculation method

4. Schedule 4 - Fit-out Guidelines: Technical specifications and requirements for any tenant modifications

5. Schedule 5 - Building Rules: Operational rules and regulations of the building

6. Schedule 6 - Handover Protocol: Condition report and handover procedures

7. Schedule 7 - Permitted Uses: Detailed list of permitted commercial activities

8. Appendix A - Required Licenses: List of mandatory licenses and permits for property use

9. Appendix B - Insurance Requirements: Detailed insurance specifications required from both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Lease Agreement

Cost

Free to use
Relevant legal definitions








































Clauses









































Relevant Industries

Retail

Office Space

Industrial

Warehousing

Hospitality

Healthcare

Education

Financial Services

Technology

Manufacturing

Logistics

Professional Services

Entertainment

Food and Beverage

Relevant Teams

Legal

Finance

Operations

Facilities Management

Real Estate

Administration

Compliance

Risk Management

Corporate Services

Procurement

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Commercial Director

Facilities Manager

Real Estate Manager

Legal Counsel

Operations Director

Property Manager

Finance Manager

Compliance Officer

Business Development Manager

Corporate Services Manager

Administration Manager

Risk Manager

Procurement 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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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