Pre Lease Agreement Template for Saudi Arabia

The Pre Lease Agreement is a crucial document used in Saudi Arabian real estate transactions when parties intend to enter into a lease arrangement but need to establish preliminary terms and conditions before finalizing the formal lease agreement. This document is particularly relevant in situations involving commercial properties, new developments, or properties under construction where the formal lease cannot be immediately executed. It typically includes details about the property, proposed lease terms, deposit arrangements, conditions precedent, and the timeline for moving to a formal lease. The agreement must comply with Saudi Arabian real estate regulations, including REGA requirements and Ejar system registration, while adhering to Sharia principles. This document provides security for both parties during the pre-lease period and sets clear expectations for the subsequent lease arrangement.

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

2. Background: Context of the agreement, including the intention to enter into a formal lease agreement and the purpose of this pre-lease arrangement

3. Definitions: Key terms used throughout the agreement, including property-specific terminology and legal concepts

4. Property Details: Specific description of the property including address, dimensions, and permitted use

5. Terms of Future Lease: Outline of the key terms to be included in the final lease agreement, including proposed duration and rent

6. Deposit and Pre-lease Payments: Details of any deposits or advance payments required, including holding deposits and their treatment

7. Conditions Precedent: Conditions that must be satisfied before the formal lease agreement will be executed

8. Timeline and Process: Steps and timeframes for moving from pre-lease to formal lease agreement

9. Obligations of the Parties: Specific responsibilities of both landlord and tenant during the pre-lease period

10. Termination Rights: Circumstances under which either party may terminate the pre-lease agreement

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

12. Execution: Signature blocks and execution requirements compliant with Saudi law