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Mutual Lease Termination Agreement for United Arab Emirates

Mutual Lease Termination Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that facilitates the mutual termination of a lease agreement between a landlord and tenant. This agreement ensures compliance with UAE Federal Law No. 5 of 1985 (Civil Code) and relevant emirate-specific regulations, particularly in Dubai, Law No. 26 of 2007. The document outlines the terms and conditions for early lease termination, including property handover procedures, settlement of outstanding payments, security deposit return, and mutual release of obligations. It provides legal protection for both parties while ensuring adherence to local property laws and regulations.

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What is a Mutual Lease Termination Agreement?

The Mutual Lease Termination Agreement Template is designed for use in the United Arab Emirates when both landlord and tenant agree to end their lease arrangement before its natural expiration. This document is essential in the UAE real estate market, where specific legal requirements govern property relationships under Federal Law No. 5 of 1985 and emirate-specific regulations. The agreement provides a structured framework for documenting the mutual consent to terminate, addressing crucial elements such as property handover, financial settlements, and release of future obligations. It's particularly relevant in situations involving early lease terminations due to business relocations, personal circumstances, or property sales, ensuring compliance with UAE legal requirements while protecting both parties' interests.

What sections should be included in a Mutual Lease Termination Agreement?

1. Parties: Identification of the Landlord and Tenant with full legal names and details

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

3. Definitions: Definition of key terms used throughout the agreement

4. Mutual Agreement to Terminate: Clear statement of both parties' agreement to terminate the lease and waiver of notice periods

5. Termination Date: Specific date when the lease will terminate and the tenant will vacate

6. Property Handover: Requirements for property condition upon return and inspection procedures

7. Security Deposit: Terms for the return of the security deposit, including deductions if applicable

8. Final Payments: Settlement of all outstanding rent, utilities, maintenance charges, and other fees

9. Release of Obligations: Mutual release from future obligations under the original lease

10. Governing Law: Specification that UAE law governs the agreement

11. Execution: Signature blocks and execution requirements

What sections are optional to include in a Mutual Lease Termination Agreement?

1. Outstanding Maintenance: Include when there are pending maintenance issues that need resolution before termination

2. Sub-tenant Provisions: Include when there are sub-tenants who need to vacate the property

3. Furnishings and Fixtures: Include when dealing with furnished properties or when specific fixtures need addressing

4. Registration Requirements: Include when the property is in an area requiring formal registration of the termination

5. Broker Fees: Include when there are outstanding broker fees or commission matters to resolve

6. Post-Termination Access: Include when arrangements are needed for final inspections or repairs after the termination date

What schedules should be included in a Mutual Lease Termination Agreement?

1. Schedule 1 - Original Lease Agreement: Copy or key details of the original lease agreement being terminated

2. Schedule 2 - Property Inventory: Current inventory list and condition report of the property

3. Schedule 3 - Payment Settlement: Detailed breakdown of final payments, including any deductions from security deposit

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

5. Appendix A - Required Documents: List of documents required for formal termination (e.g., Ejari cancellation forms)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Cancellation Letter

Cost

Free to use
Relevant legal definitions




























Clauses






















Relevant Industries

Real Estate

Residential Property

Commercial Property

Retail

Hospitality

Industrial

Office Space

Manufacturing

Logistics

Education

Healthcare

Professional Services

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Property Management

Asset Management

Compliance

Administration

Customer Relations

Contract Management

Relevant Roles

Property Manager

Real Estate Manager

Facilities Manager

Legal Counsel

Contracts Manager

Leasing Manager

Asset Manager

Operations Manager

Property Administrator

Compliance Officer

Real Estate Agent

Business Development Manager

Commercial Director

Chief Operating Officer

Tenant Relations 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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