Terminate Property Management Agreement for United Arab Emirates

Terminate Property Management Agreement Template for United Arab Emirates

This document serves as a formal template for terminating property management agreements in the United Arab Emirates, complying with UAE Civil Code and relevant emirate-specific real estate regulations. It provides a comprehensive framework for ending the property management relationship, including detailed provisions for the handover process, final account settlements, and mutual release of obligations. The document incorporates specific requirements under UAE law regarding notice periods, documentation requirements, and property management regulations, particularly those enforced by RERA in Dubai and similar authorities in other emirates.

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What is a Terminate Property Management Agreement?

The Terminate Property Management Agreement Template is designed for use in the United Arab Emirates when either a property owner or property management company wishes to formally end their management arrangement. This document is essential in the UAE real estate market where property management relationships are heavily regulated, particularly in emirates like Dubai and Abu Dhabi. The template includes all necessary elements required by UAE Civil Code and real estate regulations, ensuring compliance with both federal and emirate-specific laws. It covers crucial aspects such as handover procedures, financial settlements, and mutual releases, while accommodating various property types from residential to commercial. The document is structured to protect both parties' interests during the termination process and provides clear guidelines for the transition period.

What sections should be included in a Terminate Property Management Agreement?

1. Parties: Identification of the Property Owner and the Property Management Company, including their full legal names, addresses, and registration details

2. Background: Reference to the original Property Management Agreement, including its date, property details, and key terms

3. Definitions: Key terms used in the termination agreement, including 'Effective Date', 'Handover Date', 'Final Settlement', etc.

4. Termination Notice: Formal declaration of termination, stating the effective date and referring to the relevant clause in the original agreement

5. Outstanding Obligations: List of any remaining duties, fees, or obligations of either party that need to be fulfilled before termination

6. Handover Procedure: Detailed process for transferring property management responsibilities, including documentation, keys, and access codes

7. Final Accounts Settlement: Process for reconciliation of accounts, including management fees, maintenance costs, and any security deposits

8. Release and Discharge: Mutual release from future obligations, subject to completion of handover and settlement

9. Governing Law: Confirmation that the termination is governed by UAE law and relevant emirate-specific regulations

10. Execution: Signature blocks and execution details for both parties

What sections are optional to include in a Terminate Property Management Agreement?

1. Dispute Resolution: Include when parties wish to specify particular dispute resolution mechanisms for matters arising from the termination

2. Confidentiality: Include when there are specific confidentiality requirements post-termination

3. Non-Compete Provisions: Include when the original agreement contained non-compete clauses that need to be addressed

4. Third Party Notifications: Include when there are specific requirements to notify tenants, service providers, or authorities

5. Survival Clauses: Include when certain provisions from the original agreement need to survive termination

6. Insurance Matters: Include when there are specific insurance policies or claims that need to be addressed

What schedules should be included in a Terminate Property Management Agreement?

1. Schedule 1 - Property Inventory: Detailed list of all property items, equipment, and documents to be handed over

2. Schedule 2 - Financial Statement: Comprehensive statement of accounts, including outstanding payments, deposits, and reconciliations

3. Schedule 3 - Handover Checklist: Itemized list of all tasks, documents, and items required for complete handover

4. Schedule 4 - Maintenance Log: Summary of ongoing maintenance issues, warranties, and contractor contacts

5. Appendix A - Original Agreement: Copy of the original Property Management Agreement being terminated

6. Appendix B - Property Documents: Copies of relevant property documents, permits, and certificates to be returned

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

Termination Letter

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Management

Facilities Management

Hospitality

Commercial Property

Residential Property

Asset Management

Property Development

Relevant Teams

Legal

Real Estate Operations

Property Management

Facilities Management

Contract Administration

Compliance

Asset Management

Client Relations

Operations

Finance

Relevant Roles

Property Manager

Real Estate Manager

Facilities Manager

Asset Manager

Legal Counsel

Real Estate Director

Operations Manager

Contract Manager

Compliance Officer

Property Owner

Portfolio Manager

Real Estate Administrator

Building 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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