Basic Lease Agreement Template for Saudi Arabia

The Basic Lease Agreement serves as a fundamental legal instrument in Saudi Arabia for establishing rental relationships between property owners and tenants. This document is essential for both residential and commercial property leases, ensuring compliance with Saudi Arabian law, including the Saudi Lease Law of 2018 and Ejar system requirements. It should be used whenever a property owner wishes to lease their property to a tenant, whether for residential or commercial purposes. The agreement includes crucial details such as property specifications, rental terms, maintenance responsibilities, and dispute resolution procedures, all structured to comply with Sharia principles. This document must be registered through the Ejar platform to ensure legal validity and protection for all parties involved. The Basic Lease Agreement is designed to accommodate various property types while maintaining consistency with local legal requirements and market practices.

1. Parties: Identification of landlord and tenant with full legal names, addresses, and official identification numbers as required by Saudi law

2. Background: Brief context of the lease arrangement and property description

3. Definitions: Key terms used throughout the agreement including Property, Term, Rent, Security Deposit, and other relevant definitions

4. Lease Grant: Core terms of the lease including the property description and permitted use

5. Term: Duration of the lease, commencement date, and end date

6. Rent and Payment Terms: Rent amount, payment schedule, method of payment, and late payment consequences

7. Security Deposit: Amount, payment terms, conditions for return, and permitted deductions

8. Obligations of the Landlord: Landlord's responsibilities including maintenance, repairs, and property access

9. Obligations of the Tenant: Tenant's duties including proper use, maintenance, and compliance with regulations

10. Utilities and Services: Responsibility for utility connections, payments, and related services

11. Maintenance and Repairs: Distribution of maintenance responsibilities and repair procedures

12. Insurance: Required insurance coverage for both parties

13. Default and Remedies: Events of default and corresponding remedies available to either party

14. Termination: Grounds for termination and notice requirements

15. Governing Law: Confirmation of Saudi law application and Sharia compliance

16. Dispute Resolution: Process for resolving disputes through Saudi courts or committees

17. Notices: Methods and addresses for official communications between parties

18. Execution: Signature requirements and execution formalities