A Rental Promissory Note is a crucial document in UAE real estate transactions, commonly used to secure rental payments and provide landlords with a legally enforceable instrument. This document type is particularly relevant in the UAE market where post-dated cheques are being phased out in favor of alternative payment security methods. The Rental Promissory Note must comply with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and relevant emirate-specific rental regulations, such as Dubai Law No. 26 of 2007 or Abu Dhabi Law No. 20 of 2006. It typically includes specific details about the rental property, payment terms, and parties involved, and can be used as a legal instrument for expedited enforcement in case of default. The document is essential for both residential and commercial property rentals, offering landlords a secure means of guaranteeing rental payments while providing tenants with clear documentation of their payment obligations.
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1. Identification of Parties: Clear identification of the maker (tenant) and the beneficiary (landlord) including full legal names, Emirates ID numbers, and addresses
2. Unconditional Promise to Pay: Express statement of unconditional promise to pay, including the exact amount in both numbers and words
3. Payment Details: Specific date or dates when payment is due, place of payment, and payment method
4. Property Details: Identification of the rental property for which the promissory note is issued, including complete address and any relevant property identification numbers
5. Date and Place of Issuance: Clear statement of when and where the promissory note was issued
6. Signature Block: Space for maker's signature, with full name and date
1. Witness Details: Section for witness information and signatures, recommended for higher-value rental payments
2. Guarantee Clause: Optional section for including a guarantor's commitment and details, used when additional security is required
3. Payment Schedule: For cases where the promissory note covers multiple installments, detailing the schedule of payments
4. Legal Notice: Additional clause regarding legal consequences of non-payment and jurisdiction, recommended for high-value transactions
1. Schedule A - Payment Schedule: Detailed breakdown of payment installments, dates, and amounts (if applicable for multiple payments)
2. Schedule B - Property Details: Detailed description of the rental property, including any specific terms or conditions related to the property
3. Appendix 1 - Copy of Rental Agreement: Reference copy of the main rental agreement to which this promissory note relates
4. Appendix 2 - Guarantor Documents: If applicable, copies of guarantor's identification and relevant documentation
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