A Sublease Contract is essential when a tenant wishes to transfer their leasehold rights to another party while maintaining their obligations under the original lease. In the UAE context, this document must carefully balance the requirements of federal law (particularly the UAE Civil Code) with specific emirate-level regulations governing property relationships. The agreement details the rights and obligations of both sublessor and sublessee, including rent payments, maintenance responsibilities, and compliance with property usage restrictions. It must also account for local registration requirements and obtain necessary approvals from the head landlord. The sublease term must not exceed the head lease duration, and the document should clearly reference and align with head lease terms to ensure legal compliance and practical functionality.
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1. Parties: Details of the head tenant (sublessor) and subtenant (sublessee), including full legal names, addresses, and relevant identification numbers
2. Background: Context of the sublease, including reference to the head lease and confirmation of right to sublease
3. Definitions: Key terms used throughout the agreement, including Property, Term, Head Lease, Permitted Use
4. Grant of Sublease: Formal grant of the sublease and description of the premises being subleased
5. Term and Renewal: Duration of sublease, commencement date, expiry date, and any renewal options
6. Rent and Payment Terms: Rent amount, payment schedule, security deposit, and method of payment
7. Service Charges and Utilities: Responsibility for utility payments, service charges, and maintenance fees
8. Use of Premises: Permitted use of property and restrictions on use
9. Maintenance and Repairs: Responsibilities of parties for maintenance, repairs, and alterations
10. Insurance and Liability: Insurance requirements and allocation of risks between parties
11. Default and Remedies: Events of default and available remedies for both parties
12. Termination: Grounds for termination and procedures for early termination
13. Governing Law and Jurisdiction: Applicable UAE law and jurisdiction for dispute resolution
1. Assignment and Subletting: Include if further subletting or assignment rights are to be granted
2. Fit-out Works: Include for commercial properties where tenant improvements are permitted
3. Operating Hours: Include for commercial properties with specific operating hour requirements
4. Signage Rights: Include for commercial properties where external signage is relevant
5. Break Clause: Include if early termination options are to be granted to either party
6. Force Majeure: Include specific force majeure provisions beyond standard UAE law provisions
7. Quiet Enjoyment: Include specific covenant for quiet enjoyment beyond UAE law provisions
8. Environmental Matters: Include for industrial or commercial properties with environmental concerns
1. Schedule 1 - Property Description: Detailed description of subleased premises including floor plans and area calculations
2. Schedule 2 - Head Lease: Copy or relevant excerpts of the head lease agreement
3. Schedule 3 - Rent Schedule: Detailed breakdown of rent payments and escalation terms
4. Schedule 4 - Service Charges: Breakdown of service charges and allocation methodology
5. Schedule 5 - Condition Report: Initial condition report of the premises including photographs
6. Schedule 6 - Building Rules: Applicable building rules and regulations
7. Appendix A - Required Approvals: Copies of landlord's consent and other required approvals
8. Appendix B - Handover Protocol: Procedures and checklist for property handover
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