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Commercial Lease Agreement Form Template for Saudi Arabia

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Key Requirements PROMPT example:

Commercial Lease Agreement Form

"I need a Commercial Lease Agreement Form for a retail space in Riyadh's business district, starting March 1, 2025, with specific provisions for mall operating hours and customer parking arrangements, compliant with Saudi retail property regulations."

Document background
This Commercial Lease Agreement Form is essential for any business property rental transaction in Saudi Arabia. It serves as a standardized template that ensures compliance with Saudi commercial regulations, real estate laws, and Shariah principles. The document is specifically designed for use when a property owner (landlord) wishes to lease commercial space to a business entity (tenant) in Saudi Arabia, incorporating all necessary provisions required by local authorities including the Ministry of Commerce and the Real Estate General Authority (REGA). It includes comprehensive terms covering property usage, rental payments, maintenance obligations, and dispute resolution mechanisms, while ensuring adherence to the mandatory Ejar system registration requirements. This agreement is particularly important given recent reforms in Saudi commercial real estate regulations as part of Vision 2030, making it essential for protecting both landlord and tenant interests in commercial property transactions.
Suggested Sections

1. Parties: Identification of the Landlord and Tenant with full legal names, addresses, and commercial registration details

2. Background: Context of the lease agreement and brief description of the commercial property

3. Definitions: Definitions of key terms used throughout the agreement

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

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

6. Rent and Payment Terms: Rental amount, payment schedule, security deposit, and method of payment

7. Utilities and Services: Responsibilities for utilities, maintenance, and other services

8. Use of Premises: Permitted commercial activities and restrictions on use

9. Tenant's Obligations: Key responsibilities of the tenant including maintenance, repairs, and compliance with regulations

10. Landlord's Obligations: Key responsibilities of the landlord including structural maintenance and insurance

11. Insurance Requirements: Required insurance coverage for both parties

12. Assignment and Subletting: Rules regarding transfer of lease rights or subletting the premises

13. Default and Remedies: Events of default and available remedies for both parties

14. Termination: Conditions and procedures for early termination

15. Governing Law: Confirmation of Saudi law application and Shariah compliance

16. Dispute Resolution: Process for resolving disputes including jurisdiction of Saudi courts

Optional Sections

1. Fit-out Works: Used when tenant will perform initial modifications to the premises, including approval process and specifications

2. Service Charges: Required for multi-tenant commercial buildings with shared facilities and services

3. Operating Hours: Needed for premises in commercial centers or malls with specific operating requirements

4. Environmental Compliance: Required for industrial or commercial activities with environmental impact

5. Force Majeure: Specific provisions for unforeseen circumstances affecting lease performance

6. Special Trading Requirements: For specific business types requiring special licenses or permits

7. Marketing and Signage: For retail premises requiring specific provisions about external signage and advertising

8. Guarantees: When additional security beyond the security deposit is required

Suggested Schedules

1. Schedule 1 - Property Plans: Detailed floor plans and measurements of the leased premises

2. Schedule 2 - Rent Payment Schedule: Detailed breakdown of rent payments and escalation terms

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

4. Schedule 4 - Fit-out Guidelines: Technical specifications and requirements for premises modification

5. Schedule 5 - Building Rules and Regulations: Specific rules governing the use of the building and common areas

6. Schedule 6 - Handover Condition Report: Detailed description of premises condition at handover

7. Schedule 7 - Permits and Licenses: List of required governmental permits and licenses

8. Appendix A - Required Insurance Certificates: Forms and specifications for required insurance coverage

Authors

Alex Denne

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

Relevant legal definitions











































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Relevant Industries

Commercial Real Estate

Retail

Industrial

Office Space

Hospitality

Healthcare

Manufacturing

Warehousing and Logistics

Banking and Financial Services

Professional Services

Education

Technology

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Risk Management

Corporate Services

Commercial

Property Management

Asset Management

Contract Administration

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Facilities Manager

Commercial Director

Operations Manager

Chief Financial Officer

Business Development Manager

Compliance Officer

Contract Administrator

Asset Manager

Leasing Manager

Risk Manager

Corporate Services 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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