Commercial Property Sale Contract for United Arab Emirates

Commercial Property Sale Contract Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that facilitates the sale and purchase of commercial property in the United Arab Emirates. This document incorporates specific requirements under UAE federal laws and emirate-specific regulations, particularly addressing property registration, ownership transfer, and commercial property regulations. It includes detailed provisions for purchase price, payment terms, warranties, property handover procedures, and completion requirements in accordance with UAE property laws and commercial practice.

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What is a Commercial Property Sale Contract?

The Commercial Property Sale Contract is a crucial document used in the United Arab Emirates for transacting commercial real estate between parties. It serves as the primary agreement documenting the terms and conditions of the sale, including property details, purchase price, payment terms, and completion requirements. This contract must comply with UAE federal laws, including the UAE Civil Code and Commercial Transactions Law, as well as specific emirate-level property regulations. It is particularly important in ensuring proper transfer of ownership, registration with relevant authorities, and protection of both parties' interests. The document is essential for any commercial property transaction in the UAE, whether involving office spaces, retail units, industrial facilities, or other commercial real estate assets.

What sections should be included in a Commercial Property Sale Contract?

1. Parties: Identification of the Seller and Buyer, including full legal names, registration numbers for companies, and address details

2. Background: Brief context of the transaction and confirmation of the Seller's ownership rights

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

4. Property Details: Comprehensive description of the property including address, size, plot number, and registration details

5. Purchase Price: Agreed purchase price, payment schedule, and payment methods

6. Deposit: Details of the deposit amount, payment timing, and holding arrangements

7. Conditions Precedent: Conditions that must be satisfied before completion can occur

8. Seller's Warranties: Warranties regarding property ownership, condition, and absence of encumbrances

9. Buyer's Warranties: Warranties regarding capacity to purchase and source of funds

10. Completion: Completion date, location, and requirements for completion

11. Registration: Process and requirements for property registration with relevant authorities

12. Handover: Procedures for physical handover of the property and transfer of utilities

13. Default and Termination: Consequences of default and termination rights

14. Notices: Process for serving notices between parties

15. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction

What sections are optional to include in a Commercial Property Sale Contract?

1. Tenant Rights: Required if the property is sold with existing tenants, detailing their rights and obligations

2. Mortgage Details: Required if the property is being sold subject to an existing mortgage or if buyer requires mortgage financing

3. Service Charges: Required for properties in managed developments with service charge obligations

4. Property Management: Required if the property includes managed facilities or common areas

5. Environmental Matters: Required for industrial properties or where environmental issues are relevant

6. Planning and Zoning: Required where specific usage restrictions or development potential is material to the transaction

7. VAT Treatment: Required for properties where VAT is applicable to the transaction

8. Escrow Arrangements: Required where parties agree to use an escrow agent for the transaction

What schedules should be included in a Commercial Property Sale Contract?

1. Property Plan: Detailed plans and drawings of the property

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

3. Property Documents: List of all property-related documents to be handed over

4. Inventory: List of fixtures, fittings, and equipment included in the sale

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

6. Due Diligence Results: Summary of technical, legal, and financial due diligence findings

7. Existing Contracts: List and copies of relevant contracts affecting the property

8. Property Certificates: Copies of building completion certificate and other relevant certificates

9. Service Charge Schedule: Details of service charge calculations and allocations

10. Registration Requirements: List of documents required for property registration

Authors

Alex Denne

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

Publisher

Genie AI

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Banking & Finance

Retail

Manufacturing

Hospitality

Healthcare

Technology

Professional Services

Logistics & Warehousing

Education

Relevant Teams

Legal

Real Estate

Finance

Operations

Compliance

Risk Management

Business Development

Asset Management

Property Management

Facilities Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Real Estate Director

Property Manager

Legal Counsel

Commercial Director

Facilities Manager

Investment Manager

Asset Manager

Development Director

Operations Manager

Finance Manager

Compliance Officer

Risk Manager

Business Development 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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