The Business Sublet Lease Agreement is a crucial document in the UAE commercial real estate sector, particularly when businesses need to optimize their leased space or restructure their property commitments. This agreement is commonly used when a tenant has excess space or needs to share premises costs while maintaining their master lease obligations. The document must comply with UAE federal laws, including the 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. It typically requires the master landlord's consent and must be registered with relevant authorities. The agreement details all aspects of the sublease relationship, including financial terms, operational responsibilities, and compliance requirements, while ensuring the subtenant's activities align with both the master lease terms and local business regulations.
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1. Parties: Identification of the Head Tenant (Sublessor) and Subtenant (Sublessee), including full legal names, registration numbers, and registered addresses
2. Background: Context of the sublease arrangement, including reference to the master lease and confirmation of the head tenant's authority to sublease
3. Definitions: Key terms used throughout the agreement, including Property, Term, Permitted Use, Common Areas, Service Charges, etc.
4. Grant of Sublease: Formal grant of the sublease, specifying the exact premises being subleased
5. Term and Renewal: Duration of the sublease, commencement date, expiry date, and any renewal options
6. Rent and Payment Terms: Rental amount, payment schedule, security deposit, and other financial obligations
7. Service Charges and Utilities: Responsibility for utility payments, service charges, and maintenance costs
8. Use of Premises: Permitted business activities and restrictions on use
9. Maintenance and Repairs: Responsibilities for maintaining and repairing the premises
10. Insurance and Liability: Required insurance coverage and allocation of risks
11. Assignment and Further Subletting: Restrictions on assignment or further subletting of the premises
12. Default and Termination: Events of default, remedies, and termination provisions
13. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction for disputes
1. Fit-out Works: Include when the subtenant is permitted to perform modifications or improvements to the premises
2. Operating Hours: Include for retail or commercial premises in a larger complex with specific operating hours
3. Signage Rights: Include when the subtenant has specific rights to display business signage
4. Parking Allocation: Include when specific parking spaces are allocated as part of the sublease
5. Environmental Compliance: Include for industrial or manufacturing premises requiring specific environmental compliance
6. Security Provisions: Include when specific security arrangements or access controls are required
7. Break Clause: Include when either party has the option to terminate early under specific conditions
1. Schedule 1 - Floor Plan: Detailed plan showing the subleased premises and common areas
2. Schedule 2 - Master Lease: Copy or relevant excerpts of the master lease agreement
3. Schedule 3 - Rent Schedule: Detailed breakdown of rent payments, including any escalations
4. Schedule 4 - Service Charges: Breakdown of service charges and calculation method
5. Schedule 5 - Fit-out Guidelines: Technical specifications and requirements for any permitted modifications
6. Schedule 6 - Handover Condition Report: Documentation of premises condition at commencement of sublease
7. Schedule 7 - Building Rules and Regulations: Applicable rules and regulations for the building or complex
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