The Termination Of Commercial Lease Agreement Template is designed for use in the United Arab Emirates when parties mutually agree to end a commercial lease before or at its natural conclusion. This document is essential for properly documenting the termination process in accordance with UAE federal laws and emirate-specific regulations, particularly the UAE Civil Code (Federal Law No. 5 of 1985) and local property laws. It covers crucial elements including termination date, final settlements, property handover requirements, and mutual releases. The agreement protects both landlord and tenant interests by clearly defining their rights and obligations during the termination process, ensuring proper documentation for regulatory compliance, and preventing future disputes. It's particularly important in the UAE market where commercial property relationships are heavily regulated and proper documentation is essential for government interactions.
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1. Parties: Identification of the Landlord and Tenant with full legal names and addresses
2. Background: Reference to the original lease agreement, property details, and brief context for the termination
3. Definitions: Key terms used in the agreement including 'Termination Date', 'Property', 'Original Lease', etc.
4. Termination: Clear statement of mutual agreement to terminate the lease and the effective termination date
5. Final Settlement: Details of all financial settlements including rent, utilities, maintenance charges, and security deposit
6. Property Handover: Process and requirements for returning the property, including condition requirements and inspection procedures
7. Mutual Release: Mutual release of claims and obligations post-termination, subject to completion of termination obligations
8. Outstanding Obligations: List of any remaining obligations that survive termination
9. Governing Law: Confirmation that the agreement is governed by UAE law and relevant emirate-specific regulations
10. Execution: Signature blocks and execution requirements
1. Early Termination Fee: Include when the termination occurs before the original lease end date and penalties apply
2. Renovation Requirements: Include when specific restoration or repair work is required before handover
3. Disputed Amounts: Include when there are contested charges or payments requiring resolution
4. Third Party Notifications: Include when notifications to utilities, authorities, or other third parties are required
5. Holdover Provisions: Include when there's potential for delayed vacation of the property
6. Assignment of Warranties: Include when there are transferable warranties or permits related to tenant improvements
1. Schedule 1 - Property Inventory: Detailed list of fixtures, fittings, and condition assessment
2. Schedule 2 - Settlement Statement: Detailed breakdown of all financial settlements including payments and refunds
3. Schedule 3 - Handover Checklist: Specific requirements for property handover and inspection criteria
4. Appendix A - Original Lease: Copy of the original lease agreement being terminated
5. Appendix B - Property Photographs: Current photographs documenting the property condition
6. Appendix C - Utility Accounts: List of utility accounts and status of final readings/payments
Authors
Relevant legal definitions
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Relevant Industries
Real Estate
Retail
Hospitality
Healthcare
Professional Services
Manufacturing
Technology
Financial Services
Education
Logistics
Wholesale and Distribution
Construction
Relevant Teams
Legal
Real Estate
Facilities Management
Operations
Compliance
Property Management
Asset Management
Contract Administration
Risk Management
Relevant Roles
Real Estate Manager
Property Manager
Legal Counsel
Commercial Lease Administrator
Facilities Manager
Business Operations Manager
Contract Manager
Real Estate Director
Chief Operating Officer
Compliance Officer
Property Services Manager
Asset Manager
Tenant Relations Manager
Real Estate Legal Specialist
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