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Commercial Lease Addendum

Commercial Lease Addendum Template for United Arab Emirates

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Key Requirements PROMPT example:

Commercial Lease Addendum

"I need a Commercial Lease Addendum for our Dubai retail space to extend the lease term by 3 years starting from March 1, 2025, with a 5% annual rent increase and additional provisions for outdoor signage rights."

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Document background
The Commercial Lease Addendum is a crucial document used in the United Arab Emirates when parties need to modify an existing commercial lease agreement without creating an entirely new contract. It's particularly relevant when circumstances require changes to original lease terms, such as rent adjustments, lease extensions, or modifications to property usage. The document must comply with UAE federal laws, including the UAE Civil Code and Commercial Transactions Law, as well as specific emirate-level regulations such as Dubai Law No. 26 of 2007 or Abu Dhabi Law No. 20 of 2006. The addendum typically requires registration with relevant authorities like RERA in Dubai and must account for recent developments in UAE property law, including VAT implications and economic substance requirements.
Suggested Sections

1. Parties: Identification of the landlord and tenant as per the original lease agreement, including their updated contact details and trade license information if applicable

2. Background: Reference to the original lease agreement, including its date of execution and any previous addenda, explaining the necessity for this addendum

3. Definitions: Key terms used in the addendum, including references to defined terms in the original lease that may be modified

4. Effective Date: Specification of when the modifications in the addendum take effect

5. Amendments to Original Lease: Detailed description of specific modifications to the original lease, clearly referencing the sections being modified

6. Confirmation of Other Terms: Confirmation that all other terms of the original lease remain unchanged and in full force and effect

7. Governing Law and Jurisdiction: Confirmation that UAE law governs the addendum and specification of relevant emirate jurisdiction

8. Execution: Signature blocks for all parties, including any required witnesses as per UAE law

Optional Sections

1. Rent Modification: Used when the addendum involves changes to rent amount, payment schedule, or method of payment

2. Term Extension: Used when modifying the lease duration or renewal terms

3. Property Modifications: Used when documenting changes to the leased space or permitted modifications by either party

4. Use Clause Modifications: Used when changing the permitted use of the premises

5. Insurance Requirements: Used when modifying insurance obligations of either party

6. Security Deposit Adjustment: Used when modifying security deposit terms or amounts

7. Maintenance Responsibilities: Used when reallocating maintenance obligations between parties

8. VAT Provisions: Used when adding or modifying VAT-related obligations

Suggested Schedules

1. Schedule 1 - Modified Rent Schedule: Detailed breakdown of new rent amounts and payment dates if applicable

2. Schedule 2 - Property Modifications Plan: Floor plans or specifications for any authorized modifications to the premises

3. Schedule 3 - Updated Insurance Certificates: Copies of new or modified insurance policies if insurance terms are changed

4. Appendix A - Original Lease Agreement: Copy of the original lease agreement for reference

5. Appendix B - Previous Addenda: Copies of any previous addenda to the original lease

6. Appendix C - Required Permits: Copies of any new permits or licenses required for modified use or operations

7. Appendix D - RERA Registration: Updated RERA registration documents if required by local regulations

Authors

Alex Denne

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

alex.den.21@genieai.co
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Relevant Industries

Real Estate

Retail

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Financial Services

Technology

Manufacturing

Hospitality

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Relevant Teams

Legal

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Facilities Management

Operations

Finance

Compliance

Property Management

Business Development

Asset Management

Procurement

Risk Management

Relevant Roles

Legal Counsel

Real Estate Manager

Property Manager

Facilities Manager

Commercial Director

Operations Manager

Chief Financial Officer

Compliance Officer

Real Estate Director

Business Development Manager

Asset Manager

Leasing Manager

Contract Administrator

Real Estate Broker

Finance Manager

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