The Preliminary Lease Agreement is a crucial document used in Saudi Arabian real estate transactions when parties have agreed in principle to a lease but need to formalize their intentions and establish a framework for moving forward to a final lease agreement. This document is particularly relevant in commercial leasing where due diligence, regulatory approvals, or fit-out works may be required before finalizing the lease. It typically includes key commercial terms, timelines, exclusivity provisions, and any conditions that must be met before proceeding to the final lease. The agreement must comply with Saudi civil law, Sharia principles, and the Ejar system requirements, while providing both parties with security during the preliminary phase of their leasing relationship.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
1. Parties: Identification of the landlord and prospective tenant, including full legal names, addresses, and official identification numbers as required by Saudi law
2. Background: Context of the preliminary lease arrangement, property overview, and purpose of the agreement
3. Definitions: Key terms used throughout the agreement, including property definition, commencement date, and other relevant terminology
4. Property Details: Specific description of the property, including location, size, and permitted use
5. Term and Commencement: Proposed duration of the final lease and expected commencement date
6. Rent and Payment Terms: Proposed rental amount, payment schedule, and any advance payments or deposits required
7. Conditions Precedent: Conditions that must be satisfied before proceeding to the final lease agreement
8. Due Diligence: Rights and obligations regarding property inspection and documentation review
9. Timeline to Final Agreement: Deadlines and process for moving to the final lease agreement
10. Good Faith Deposit: Terms regarding any deposit required and conditions for its return or forfeiture
11. Exclusivity Period: Period during which the landlord cannot negotiate with other potential tenants
12. Governing Law and Jurisdiction: Confirmation of Saudi law application and relevant jurisdiction
13. Termination Rights: Circumstances under which either party can terminate the preliminary agreement
14. Notices: Process and requirements for formal communications between parties
1. Broker Provisions: Required if a real estate broker is involved in the transaction, detailing broker's role and commission
2. Fit-out Works: Include if preliminary agreement needs to address proposed modifications or improvements to the property
3. Municipal Approvals: Include if specific municipal or governmental approvals are required for the intended use
4. Sharia Compliance Declaration: Optional explicit statement of Sharia compliance, often included for institutional tenants
5. Parent Company Guarantee: Include if tenant is a subsidiary and parent company guarantee is required
6. Force Majeure: Optional detailed provisions for unforeseen circumstances affecting the preliminary agreement
7. VAT Treatment: Include if clarity on VAT applicability and treatment is required at preliminary stage
1. Property Plans: Floor plans, location maps, and any relevant property drawings
2. Property Title Documents: Copies of relevant ownership documentation and property registration
3. Proposed Commercial Terms: Detailed breakdown of proposed financial and commercial terms for the final lease
4. Due Diligence Requirements: Checklist of required documents and inspections
5. Form of Final Lease: Draft or outline of the proposed final lease agreement
6. Timeline Schedule: Detailed timeline for preliminary lease period, including key milestones and deadlines
7. Required Approvals: List of necessary governmental and regulatory approvals
Find the exact document you need
Preliminary Employment Contract
A preliminary agreement outlining initial employment terms and conditions under Saudi Arabian law, serving as a precursor to the final employment contract.
Download
Preliminary Lease Agreement
A Saudi Arabian preliminary agreement establishing key terms and conditions for a future lease, governed by Saudi law and Sharia principles.
Download
Preliminary Agreement For Sale And Purchase
A Saudi law-governed preliminary agreement outlining key terms and conditions for a prospective sale and purchase transaction, compliant with Sharia principles.
Download
Preliminary Share Purchase Agreement
A Saudi Arabian law-governed preliminary agreement outlining the framework and key terms for a proposed share purchase transaction.
Download
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)