Simple Commercial Rental Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Simple Commercial Rental Agreement

"I need a Simple Commercial Rental Agreement for a retail space in Riyadh's business district, starting from March 2025, with specific provisions for a fashion boutique including signage rights and fit-out period."

Document background
The Simple Commercial Rental Agreement is a fundamental legal document used in Saudi Arabia for leasing commercial properties, whether for retail, office, or other business purposes. This document type is essential for businesses operating in Saudi Arabia's growing commercial real estate sector and must comply with both Shariah principles and modern commercial regulations. The agreement covers crucial aspects such as rental terms, maintenance obligations, permitted use, and compliance requirements specific to Saudi jurisdiction. It's particularly relevant in the context of Saudi Arabia's Vision 2030, which has introduced new regulations affecting commercial real estate transactions. The document is typically prepared in both Arabic and English, though the Arabic version prevails legally, and must incorporate recent updates to Saudi commercial law and real estate regulations.
Suggested Sections

1. Parties: Identification of the Lessor and Lessee with full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement including property details and intended commercial use

3. Definitions: Key terms used throughout the agreement including Property, Commencement Date, Term, Rent, etc.

4. Demise: Formal granting of the lease and specification of the leased premises

5. Term and Renewal: Duration of lease, commencement date, and renewal terms

6. Rent and Payment Terms: Rent amount, payment schedule, method of payment, and VAT provisions

7. Security Deposit: Amount, payment terms, and conditions for return of security deposit

8. Permitted Use: Specified commercial activities allowed in the premises

9. Maintenance and Repairs: Responsibilities of each party for maintenance, repairs, and improvements

10. Utilities and Services: Provisions for electricity, water, telecommunications, and other services

11. Insurance: Required insurance coverage for both parties

12. Compliance with Laws: Obligation to comply with Saudi regulations, including commercial, building, and safety codes

13. Assignment and Subletting: Restrictions and conditions for transferring or subletting the premises

14. Termination: Grounds and procedures for early termination

15. Governing Law and Jurisdiction: Application of Saudi law and jurisdiction of Saudi courts

Optional Sections

1. Fit-out Works: Terms for initial tenant improvements and modifications - include when premises require renovation

2. Break Clause: Early termination options - include for longer-term leases

3. Force Majeure: Provisions for unforeseen circumstances - particularly relevant post-COVID

4. Property Management: Building management rules - include for multi-tenant buildings

5. Environmental Compliance: Environmental obligations - include for industrial or specialized commercial uses

6. Prayer Room: Specifications for mandatory prayer facilities - include for larger commercial spaces

7. Signage Rights: Terms for external and internal signage - include for retail premises

8. Parking: Allocation and management of parking spaces - include when parking is limited or shared

Suggested Schedules

1. Schedule 1 - Property Details: Detailed description of premises including floor plans and boundaries

2. Schedule 2 - Rent Payment Schedule: Detailed breakdown of rent payments and escalation

3. Schedule 3 - Service Charges: Breakdown of service charges and calculation method

4. Schedule 4 - Building Rules: Specific rules and regulations for the building or complex

5. Schedule 5 - Handover Condition: Description and photos of premises condition at handover

6. Schedule 6 - Permitted Alterations: Pre-approved alterations and modification guidelines

7. Appendix A - Required Licenses: List of mandatory licenses and permits for operation

8. Appendix B - Insurance Requirements: Detailed insurance requirements and minimum coverage

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
Clauses
Relevant Industries

Retail

Office Space

Food and Beverage

Healthcare

Professional Services

Technology

Education

Manufacturing

Logistics

Entertainment

Fashion and Apparel

Banking and Finance

Hospitality

Automotive

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Risk Management

Business Development

Property Management

Asset Management

Procurement

Administration

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Commercial Director

Facilities Manager

Business Development Manager

Operations Director

Chief Financial Officer

Compliance Officer

Real Estate Investment Manager

Leasing Manager

Asset Manager

Contract Administrator

Risk Manager

Branch 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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