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Commercial Property Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Commercial Property Contract

"I need a Commercial Property Contract for purchasing a multi-tenant retail building in Riyadh, where we want to maintain all existing lease agreements and include specific provisions for future retail development rights, with completion planned for March 2025."

Document background
The Commercial Property Contract serves as the primary legal instrument for buying and selling commercial real estate in Saudi Arabia. This document is essential for businesses seeking to acquire commercial property in the Kingdom, whether for office space, retail outlets, industrial facilities, or other commercial purposes. It must comply with both Saudi civil law and Sharia principles, incorporating recent reforms under Saudi Vision 2030. The contract includes comprehensive provisions for property transfer, payment terms, warranties, and regulatory compliance, while ensuring all necessary governmental approvals and registrations are addressed. It's particularly important given Saudi Arabia's dynamic real estate market and evolving commercial property regulations, requiring careful attention to local municipal requirements and foreign investment restrictions where applicable.
Suggested Sections

1. Parties: Identification of all contracting parties including full legal names, addresses, and commercial registration details

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

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

4. Property Details: Comprehensive description of the property including location, dimensions, and title deed information

5. Purchase Price and Payment Terms: Detailed breakdown of the purchase price, payment schedule, and payment methods

6. Conditions Precedent: Conditions that must be satisfied before the agreement becomes effective

7. Completion Requirements: Steps and requirements for completing the property transfer

8. Seller's Warranties: Warranties regarding property ownership, condition, and compliance with laws

9. Buyer's Warranties: Warranties regarding legal capacity and financial ability to complete the purchase

10. Property Handover: Process and requirements for physical handover of the property

11. Title and Registration: Procedures for title transfer and registration with relevant authorities

12. Governing Law and Jurisdiction: Specification of Saudi law application and jurisdiction

13. Force Majeure: Provisions for unforeseen circumstances preventing contract performance

14. Termination: Circumstances and procedures for contract termination

15. Notices: Methods and addresses for official communications between parties

Optional Sections

1. Foreign Ownership Provisions: Additional requirements and approvals for foreign buyers, required when buyer is a foreign entity

2. Strata Title Provisions: Specific provisions for multi-unit commercial properties, required for subdivided buildings

3. Environmental Compliance: Additional environmental requirements, needed for industrial or specialized commercial properties

4. Existing Tenancies: Details of current lease agreements, required when property is sold with sitting tenants

5. Development Conditions: Requirements for future development or renovation, needed when property requires development

6. Mortgage Provisions: Terms related to property financing, required when purchase involves bank financing

7. Tax Provisions: Specific tax considerations and obligations, particularly relevant for foreign investors

8. Insurance Requirements: Specific insurance obligations, important for high-value or specialized properties

Suggested Schedules

1. Property Plan: Detailed architectural plans and property boundaries

2. Title Documents: Copies of title deed and other ownership documents

3. Due Diligence Reports: Technical, legal, and financial due diligence findings

4. Payment Schedule: Detailed breakdown of payment installments and timing

5. Property Permits: Copies of building permits and commercial licenses

6. Existing Leases: Details of current lease agreements and tenant information

7. Property Condition Report: Detailed assessment of property condition and inventory

8. Service Contracts: List of ongoing service contracts affecting the property

9. Municipality Approvals: Relevant municipal permits and zoning certificates

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

















































Clauses









































Relevant Industries

Real Estate

Retail

Manufacturing

Hospitality

Healthcare

Education

Financial Services

Technology

Logistics

Professional Services

Industrial

Entertainment

Food and Beverage

Automotive

Relevant Teams

Legal

Real Estate

Finance

Operations

Compliance

Risk Management

Facilities Management

Business Development

Corporate Affairs

Investment

Property Management

Relevant Roles

Real Estate Director

Property Manager

Legal Counsel

Chief Financial Officer

Business Development Manager

Facilities Manager

Investment Director

Compliance Officer

Risk Manager

Operations Director

Asset Manager

Real Estate Broker

Corporate Lawyer

Finance Manager

Project 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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