License To Occupy Residential Property Template for Saudi Arabia

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Key Requirements PROMPT example:

License To Occupy Residential Property

"I need a License To Occupy Residential Property agreement for a furnished three-bedroom apartment in Riyadh, Saudi Arabia, where my company will be housing expatriate employees for a 12-month period starting January 2025, with specific provisions for corporate housing and maintenance responsibilities."

Document background
The License To Occupy Residential Property is commonly used in Saudi Arabia when temporary or flexible residential arrangements are required, particularly in corporate housing scenarios or expatriate accommodation situations. This document provides a more flexible alternative to traditional leases while maintaining compliance with Saudi Arabian property laws and Shariah principles. It's particularly useful for companies providing employee housing, temporary residential arrangements, or situations where full tenancy rights are not intended to be granted. The document covers essential elements including property details, duration, fees, maintenance responsibilities, and termination provisions, while ensuring compliance with local municipal regulations and the Ejar platform requirements. It's designed to protect both the property owner's and occupier's interests while maintaining alignment with Saudi Arabian legal requirements and cultural considerations.
Suggested Sections

1. Parties: Identification of the Licensor (property owner) and Licensee (occupier), including full legal names, addresses, and relevant identification numbers

2. Background: Context of the agreement, including property ownership status and purpose of the license

3. Definitions: Key terms used throughout the agreement, including 'Property', 'License Period', 'License Fee', and other relevant terms

4. Grant of License: Specific terms of the license grant, including the exact property details and permitted use

5. Duration: Period of the license, including start date and end date

6. License Fee: Amount payable, payment schedule, and payment methods in compliance with Saudi regulations

7. Security Deposit: Details of the required deposit, conditions for return, and permitted deductions

8. Licensee Obligations: Specific responsibilities of the occupier, including maintenance, permitted uses, and compliance with local regulations

9. Licensor Obligations: Responsibilities of the property owner, including maintenance of structure and compliance with safety requirements

10. Utilities and Services: Responsibilities for utility connections, payments, and maintenance

11. Property Access: Conditions under which the Licensor may access the property

12. Termination: Circumstances and procedures for ending the license, including notice periods

13. Governing Law and Jurisdiction: Confirmation of Saudi law application and relevant jurisdiction

14. Notices: Process for formal communications between parties

Optional Sections

1. Insurance: Required when the Licensor wants specific insurance coverage maintained by the Licensee

2. Furniture and Fittings: Include when the property is being licensed with furnishings

3. Alterations: Include when specific restrictions on property modifications are needed

4. Sub-licensing Prohibition: Include when explicit prohibition of sub-licensing is required

5. Force Majeure: Include when specific provisions for unexpected events are needed

6. Exit Clause: Include when early termination options are to be provided

7. Special Conditions for Expatriates: Include when the Licensee is a non-Saudi resident

8. Registration Requirements: Include when specific registration on Ejar platform or other authorities is required

Suggested Schedules

1. Property Description: Detailed description of the property including address, dimensions, and included areas

2. Inventory List: List of furnishings and items included in the license, if any

3. Property Condition Report: Detailed report of the property condition at commencement

4. House Rules: Specific rules and regulations for the property and/or compound

5. Payment Schedule: Detailed breakdown of all payments including license fee, utilities, and other charges

6. Maintenance Responsibilities Matrix: Clear division of maintenance responsibilities between Licensor and Licensee

7. Required Permits: Copies of relevant permits and certificates required by Saudi authorities

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

Relevant legal definitions
Relevant Industries

Real Estate

Residential Property

Corporate Housing

Hospitality

Property Management

Facility Management

Professional Services

Oil & Gas

Construction

Education

Relevant Teams

Legal

Real Estate

Human Resources

Facilities Management

Operations

Compliance

Corporate Services

Administration

Risk Management

Property Management

Relevant Roles

Real Estate Manager

Property Manager

Facility Manager

Legal Counsel

Corporate Housing Coordinator

HR Manager

Relocation Specialist

Compliance Officer

Operations Manager

Contract Administrator

Housing Officer

Employee Relations Manager

Real Estate Agent

Property Administrator

Accommodation Manager

Industries
Saudi Real Estate Law (Royal Decree No. M/50): The primary legislation governing real estate transactions, property rights, and obligations in Saudi Arabia. It provides the fundamental framework for property ownership and usage.
Residential Rental Law (Council of Ministers Resolution 292): Regulates the relationship between landlords and tenants, including rights, obligations, and dispute resolution mechanisms for residential properties.
Municipality Regulations on Residential Properties: Local regulations governing residential property standards, occupancy requirements, and safety measures that must be maintained in residential properties.
Expatriate Residence Regulations (Iqama Related): Regulations concerning housing requirements for expatriates, including registration requirements and permitted residential areas.
Islamic Shariah Principles on Property Rights: Fundamental Islamic law principles that govern property rights, contracts, and obligations, which must be considered in all property transactions in Saudi Arabia.
Ministry of Housing Regulations: Regulations governing residential property standards, including minimum requirements for residential units and occupancy conditions.
Civil Defense Safety Requirements: Mandatory safety requirements and standards that must be maintained in residential properties for occupancy permits.
Ejar Rental Services Platform Regulations: Electronic platform regulations for registering and documenting rental relationships, which has become mandatory for residential rentals in Saudi Arabia.
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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