The Property License Agreement is widely used in the United Arab Emirates' dynamic real estate sector, where flexible property usage arrangements are increasingly common. This document type is particularly relevant when traditional lease arrangements are not suitable or when specific usage rights need to be granted without transferring full possessory rights. The agreement complies with UAE federal laws, including the Civil Code and Commercial Transactions Law, as well as emirate-specific property regulations. It's commonly used for commercial spaces, retail units, temporary facilities, and specialized use cases where the property owner wants to maintain significant control while granting specific usage rights. The document typically includes detailed provisions on permitted use, duration, fees, maintenance obligations, and compliance with local property regulations.
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1. Parties: Identification of the Licensor and Licensee with full legal names, addresses, and registration details as required by UAE law
2. Background: Context of the agreement, property details, and purpose of the license arrangement
3. Definitions: Defined terms used throughout the agreement, including property-specific terminology and UAE legal terms
4. Grant of License: Specific terms of the license, including scope, limitations, and permitted use of the property
5. Term and Renewal: Duration of the license, commencement date, expiry, and renewal provisions
6. License Fee: Payment terms, amounts, payment schedule, and method of payment
7. Obligations of the Licensor: Licensor's responsibilities including maintenance, access, and compliance with laws
8. Obligations of the Licensee: Licensee's duties including proper use, compliance with regulations, and maintenance obligations
9. Property Rules and Regulations: Specific rules governing the use of the property and compliance with local regulations
10. Insurance and Liability: Insurance requirements and allocation of risks between parties
11. Termination: Grounds for termination, notice requirements, and consequences of termination
12. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes
1. Fit-Out Works: Include when the licensee is permitted to carry out modifications or improvements to the property
2. Utilities and Services: Include when there are specific arrangements for utility connections and service charges
3. Security Deposit: Include when a security deposit is required from the licensee
4. Assignment and Sublicensing: Include when transfer of rights or sublicensing is permitted under specific conditions
5. Force Majeure: Include when specific force majeure provisions are needed beyond standard UAE law provisions
6. Environmental Compliance: Include for properties where environmental regulations are particularly relevant
7. Intellectual Property: Include when the license involves use of branded spaces or intellectual property rights
1. Property Description: Detailed description of the licensed property including floor plans and measurements
2. License Fee Schedule: Detailed breakdown of fees, payment dates, and escalation provisions
3. Permitted Use: Specific details of allowed activities and use restrictions
4. Property Rules and Regulations: Detailed building rules, access times, and operational guidelines
5. Maintenance Schedule: Breakdown of maintenance responsibilities between licensor and licensee
6. Handover Condition Report: Detailed description of property condition at commencement of license
7. Required Insurances: Specific insurance types and coverage amounts required
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