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Development Lease Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Development Lease Agreement

"I need a Development Lease Agreement for a mixed-use commercial project in Riyadh, Saudi Arabia, with a 25-year term starting March 2025, that includes specific provisions for phased development of retail and office spaces with green building requirements."

Document background
The Development Lease Agreement is a crucial document used in Saudi Arabian real estate development projects where a property owner wishes to grant both leasehold rights and development rights to a developer. This agreement type is particularly relevant for large-scale commercial, residential, or mixed-use developments in Saudi Arabia, where the developer takes on both the responsibility and risk of developing the property while maintaining a leasehold interest. The document must comply with Saudi Arabian law, including the Real Estate Law, Commercial Courts Law, and Sharia principles, while addressing crucial elements such as development obligations, construction standards, regulatory compliance, and risk allocation. It's commonly used in projects requiring significant capital investment, long-term commitment, and complex development phases, providing a framework for both the development phase and subsequent operational period.
Suggested Sections

1. Parties: Identification of the Lessor and Lessee/Developer, including full legal names and registration details

2. Background: Context of the development lease, property details, and general intent of the parties

3. Definitions: Detailed definitions of terms used throughout the agreement, including technical and legal terms

4. Grant of Lease: Terms of the lease grant, including duration, purpose, and development rights

5. Development Obligations: Specific obligations of the Developer regarding construction and development of the property

6. Development Timeline: Detailed timeline for development phases, including milestones and completion dates

7. Rent and Payment Terms: Payment structure, including development phase rent and operational phase rent

8. Security and Performance Guarantees: Required guarantees, bonds, and security deposits

9. Permits and Approvals: Requirements for obtaining and maintaining necessary governmental approvals

10. Construction Standards: Required building standards, quality requirements, and compliance with Saudi Building Code

11. Environmental Compliance: Environmental obligations and compliance requirements

12. Insurance and Liability: Required insurance coverage and allocation of risks

13. Default and Termination: Events of default, remedies, and termination provisions

14. Assignment and Subletting: Rights and restrictions regarding transfer of interests

15. Dispute Resolution: Procedures for resolving disputes, including Sharia-compliant arbitration

16. Governing Law: Application of Saudi law and Sharia principles

Optional Sections

1. Pre-Development Phase: Used when there is a significant planning or preparation phase before construction begins

2. Financing Provisions: Required when specific financing arrangements need to be addressed

3. Government Participation: Included when government entities have specific roles or requirements

4. Force Majeure: Detailed force majeure provisions beyond standard terms

5. Operating Requirements: Included when the agreement covers operational phase requirements

6. Sustainability Requirements: Used when specific green building or sustainability standards apply

7. Community Impact: Required when development affects local communities significantly

8. Special Economic Zone Provisions: Included for developments within special economic zones

Suggested Schedules

1. Property Description: Detailed legal description of the property including plans and surveys

2. Development Plans: Approved plans, drawings, and specifications for the development

3. Construction Timeline: Detailed construction schedule with milestones and deadlines

4. Payment Schedule: Detailed breakdown of all payments, including rent structure and development costs

5. Technical Specifications: Detailed technical requirements and standards for construction

6. Required Approvals: List of required permits, licenses, and approvals

7. Form of Performance Bond: Template for required performance bonds or guarantees

8. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

9. Environmental Standards: Specific environmental requirements and compliance standards

10. Handover Requirements: Specifications for property handover at different project stages

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

Construction

Property Development

Infrastructure

Commercial Property

Residential Development

Industrial Development

Mixed-use Development

Retail Development

Hospitality

Healthcare Facilities

Educational Facilities

Relevant Teams

Legal

Real Estate

Development

Construction

Project Management

Finance

Risk Management

Compliance

Operations

Technical Services

Environmental

Commercial

Relevant Roles

Real Estate Director

Development Manager

Project Manager

Legal Counsel

Property Manager

Construction Manager

Investment Director

Commercial Director

Chief Development Officer

Risk Manager

Contracts Manager

Compliance Officer

Technical Director

Operations Director

Finance Director

Environmental Compliance 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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