Licence Agreement Tenancy for United Arab Emirates

Licence Agreement Tenancy Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes a license arrangement for the occupation and use of property, as distinct from a traditional lease. This agreement sets out the terms under which the licensee may occupy and use specific premises, including payment terms, permitted uses, duration, and operational requirements. The document incorporates relevant UAE federal laws and emirate-specific regulations, particularly those relating to property usage and registration requirements. It includes provisions for compliance with local municipality regulations, RERA requirements (in Dubai), or equivalent regulatory frameworks in other emirates.

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What is a Licence Agreement Tenancy?

The Licence Agreement Tenancy is a specialized legal instrument used in the United Arab Emirates when parties wish to establish a flexible arrangement for property occupation that differs from a traditional lease. This document is particularly relevant in situations requiring shorter terms, shared spaces, or specific use restrictions. It addresses the unique requirements of UAE property law, including compliance with federal laws and emirate-specific regulations such as RERA in Dubai or municipality requirements in other emirates. The agreement typically includes detailed provisions for property usage, payment terms, security deposits, maintenance responsibilities, and termination rights. It's commonly used in commercial contexts such as co-working spaces, retail units in larger complexes, or temporary business establishments, where the relationship between the parties needs to be clearly distinguished from a standard landlord-tenant relationship.

What sections should be included in a Licence Agreement Tenancy?

1. Parties: Identification of the Licensor and Licensee with full legal names, registration details, and addresses

2. Background: Context of the agreement, nature of the property, and confirmation that the Licensor has authority to grant the license

3. Definitions: Key terms used throughout the agreement, including Property, Common Areas, Permitted Use, License Fee, and Service Charges

4. Grant of License: Specific terms of the license grant, clarifying this is a license not a lease, and detailed description of the licensed area

5. Term and Renewal: Duration of the license, commencement date, expiry date, and any renewal options

6. License Fee and Payment Terms: Amount, payment frequency, method of payment, and consequences of late payment

7. Security Deposit: Amount, terms of holding, and conditions for return of the security deposit

8. Permitted Use: Specific allowed uses of the property and any restrictions

9. Licensee's Obligations: Core responsibilities including maintenance, compliance with laws, and conduct requirements

10. Licensor's Obligations: Core responsibilities including access, services, and maintenance of common areas

11. Insurance: Required insurance coverage for both parties

12. Termination: Grounds for termination, notice requirements, and consequences of termination

13. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction for disputes

14. Notices: Process and addresses for formal communications between parties

What sections are optional to include in a Licence Agreement Tenancy?

1. Service Charges: Details of additional charges for services, utilities, and maintenance - used when these are not included in the main license fee

2. Fit-out Works: Requirements and conditions for any tenant improvements - included when the licensee will undertake modifications

3. Assignment and Sublicensing: Rights and restrictions regarding transfer of the license - relevant for corporate licensees

4. Force Majeure: Provisions for unexpected events preventing performance - particularly relevant post-COVID

5. Break Clause: Early termination options - included when flexibility is required

6. Guarantees: Parent company or personal guarantees - used for corporate licensees or high-value agreements

7. Operating Hours: Specific times for access and operation - relevant for commercial properties

8. Signage Rights: Terms for displaying business signs - important for retail or commercial premises

What schedules should be included in a Licence Agreement Tenancy?

1. Property Plan: Detailed floor plan showing the licensed area and common areas

2. Inventory: List of any furniture, fixtures, or equipment included in the license

3. Service Level Agreement: Detailed specification of services to be provided by the licensor

4. House Rules: Building regulations and operational procedures

5. Fit-out Guidelines: Technical specifications and requirements for any permitted modifications

6. Utility Charges: Breakdown of utility charges and calculation methods

7. Form of Bank Guarantee: Template for any required bank guarantee

8. Handover Protocol: Procedure and checklist for property handover and return

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

License Agreement

Sector

IP

Cost

Free to use
Clauses
Relevant Industries

Real Estate

Commercial Property

Retail

Hospitality

Office Space

Co-working Spaces

Industrial and Warehousing

Education

Healthcare

Retail Banking

Technology Parks

Free Zones

Mixed-use Developments

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Risk Management

Property Services

Business Development

Contract Administration

Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Operations Director

Commercial Director

Chief Financial Officer

Compliance Officer

Asset Manager

Leasing Manager

Business Development Manager

Contract Administrator

Risk Manager

Space Planning Manager

Property Services Director

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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