Lease Termination Template for United Arab Emirates

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Lease Termination Template

"I need a Lease Termination Template for a commercial warehouse in Dubai Industrial City, with early termination provisions due to business relocation, and specific clauses for handling industrial equipment removal by March 2025."

Document background

The Lease Termination Template is designed for use in the United Arab Emirates when parties mutually agree to end a lease agreement before its natural expiration or at term end. This document ensures compliance with UAE Federal Laws and emirate-specific regulations, particularly those in Dubai and Abu Dhabi. The template includes mandatory provisions required by UAE property laws, RERA regulations, and relevant civil code requirements. It is structured to protect both landlord and tenant interests, providing clear terms for property handover, financial settlements, and mutual releases. The Lease Termination Template can be customized for both residential and commercial properties, incorporating specific requirements for security deposits, utility transfers, and property condition assessments. It includes provisions for proper documentation and authentication as required by UAE authorities.

Suggested Sections

1. Parties: Full legal names and details of the landlord and tenant, including Emirates ID numbers for individuals or trade license numbers for companies

2. Background: Brief recital of the original lease agreement details, including date of execution, property details, and current rental terms

3. Definitions: Definitions of key terms used throughout the agreement, including 'Termination Date', 'Property', 'Original Lease', etc.

4. Termination: Clear statement of the mutual agreement to terminate the lease, specifying the exact termination date and confirmation that this supersedes any notice requirements in the original lease

5. Property Handover: Details of the property inspection process, condition requirements, and handover procedure including key return

6. Financial Settlement: Comprehensive settlement of all financial matters including rent, security deposit return, and any outstanding payments

7. Release and Waiver: Mutual release from future obligations and claims related to the lease, subject to the terms of this termination agreement

8. Governing Law and Jurisdiction: Confirmation that the agreement is governed by UAE law and specification of the relevant emirate's jurisdiction

Optional Sections

1. Maintenance and Repairs: Include when specific repairs or maintenance work is required before handover

2. Utility Transfers: Include when there are specific requirements for transferring or terminating utility services

3. Security Deposit Deductions: Include when there are agreed deductions from the security deposit for damages or outstanding payments

4. Forwarding Address: Include when future correspondence or deposit return requires a new address

5. Third Party Notifications: Include when there are requirements to notify building management, service providers, or other relevant parties

6. Early Termination Fee: Include when the termination occurs before the natural end of the lease term and penalties apply

7. Tenant's Personal Property: Include when there are specific arrangements needed for removal of tenant's belongings

Suggested Schedules

1. Schedule 1 - Property Details: Detailed description of the property including address, unit number, and any included fixtures and fittings

2. Schedule 2 - Financial Statement: Detailed breakdown of all financial settlements including rent, deposits, and any deductions

3. Schedule 3 - Property Condition Report: Current condition report with photographs and notes on any damage or wear and tear

4. Schedule 4 - Handover Checklist: List of items to be checked and confirmed during the final inspection and handover

5. Appendix A - Original Lease Agreement: Copy of the original lease agreement for reference

6. Appendix B - Property Photographs: Recent photographs of the property documenting its current condition

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

alex.den.21@genieai.co

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Real Estate

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Legal

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Operations

Property Management

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Property Manager

Real Estate Manager

Facilities Manager

Legal Counsel

Corporate Lawyer

Leasing Manager

Real Estate Agent

Property Administrator

Tenant Relations Manager

Asset Manager

Operations Manager

Contract Manager

Company Secretary

Compliance Officer

Real Estate Director

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