License To Use Property Agreement for United Arab Emirates

License To Use Property Agreement Template for United Arab Emirates

A License To Use Property Agreement under UAE law is a legally binding document that grants specific rights to use a property for defined purposes while maintaining the owner's underlying property rights. This agreement, governed by UAE Civil Code and relevant Emirates' property laws, establishes the terms and conditions for property usage, including duration, permitted activities, fees, and parties' obligations. It provides a flexible alternative to traditional leases, particularly suitable for temporary or specific-use arrangements, while ensuring compliance with UAE property regulations and registration requirements.

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What is a License To Use Property Agreement?

The License To Use Property Agreement is a crucial document in the UAE's property market, designed to facilitate controlled property usage without transferring ownership or creating a traditional landlord-tenant relationship. This agreement type is particularly relevant in the UAE's dynamic business environment, where flexible property arrangements are often needed for commercial, retail, or industrial purposes. The document complies with UAE Federal Laws, including the Civil Code (Federal Law No. 5 of 1985) and relevant Emirates' property regulations, making it suitable for various scenarios such as pop-up stores, shared workspaces, or specialized facilities. It includes essential provisions for property usage rights, payment terms, duration, obligations of both parties, and compliance with local regulations, while offering the flexibility to accommodate specific requirements of different business operations.

What sections should be included in a License To Use Property Agreement?

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

2. Background: Context of the agreement, brief description of the property, and general purpose of the license

3. Definitions: Definitions of key terms used throughout the agreement, including 'Property', 'Permitted Use', 'License Fee', and 'Term'

4. Grant of License: Specific details of the license being granted, including scope and limitations of use

5. Term and Renewal: Duration of the license and any renewal provisions

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

7. Permitted Use: Detailed description of how the property may be used and any restrictions

8. Licensee's Obligations: Responsibilities of the Licensee including maintenance, compliance with laws, and prohibited activities

9. Licensor's Obligations: Responsibilities of the Licensor including access, maintenance of common areas, and essential services

10. Insurance and Liability: Insurance requirements and allocation of risks between parties

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

12. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

13. Notices: Process and requirements for formal communications between parties

14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

What sections are optional to include in a License To Use Property Agreement?

1. Security Deposit: Terms regarding security deposit if required - recommended for higher-value properties

2. Fit-out Works: Provisions for any modifications or improvements - needed if property modifications are permitted

3. Utilities and Services: Allocation of responsibility for utilities - needed for properties with separate utility arrangements

4. Assignment and Sublicensing: Rights to transfer the license - include if sublicensing might be permitted

5. Force Majeure: Provisions for unforeseen circumstances - recommended for longer-term licenses

6. Environmental Compliance: Special environmental obligations - needed for industrial or sensitive properties

7. Intellectual Property: IP provisions - needed if property includes branded elements or trade dress

8. Confidentiality: Confidentiality obligations - recommended for commercial properties with sensitive operations

What schedules should be included in a License To Use Property Agreement?

1. Property Description: Detailed description of the property including plans, photographs, and specifications

2. Permitted Use Details: Comprehensive list of permitted activities and any specific restrictions

3. License Fee Schedule: Detailed breakdown of fees, payment dates, and escalation provisions

4. Property Rules and Regulations: Building or facility rules applicable to the property use

5. Condition Report: Documentation of property condition at commencement of license

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

7. Maintenance Schedule: Breakdown of maintenance responsibilities between parties

8. Required Permits and Licenses: List of necessary governmental permits and licenses for the intended use

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
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Retail

Manufacturing

Hospitality

Education

Healthcare

Technology

Logistics

Entertainment

Professional Services

Construction

Industrial

Commercial Services

Tourism

Banking and Finance

Relevant Teams

Legal

Real Estate

Operations

Facilities Management

Property Management

Asset Management

Compliance

Risk Management

Business Development

Commercial Operations

Contract Administration

Relevant Roles

Property Manager

Facility Manager

Real Estate Director

Commercial Director

Operations Manager

Legal Counsel

Contract Manager

Business Development Manager

Compliance Officer

Asset Manager

Real Estate Investment Manager

Property Development Manager

Leasing Manager

Risk Manager

Chief Operating Officer

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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