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Sale Lease Back Agreement
"I need a Sale Lease Back Agreement for our manufacturing facility in Riyadh, where we'll sell the property to a Saudi investment firm but continue operating it for 15 years, with the deal to complete by March 2025 and include annual rent reviews linked to CPI."
1. Parties: Identification of the Seller/Lessee and Buyer/Lessor, including full legal names, registration details, and addresses
2. Background: Context of the transaction, including property overview and commercial intent of the arrangement
3. Definitions: Key terms used throughout the agreement, including Property, Completion Date, Lease Term, Rent, etc.
4. Sale Provisions: Terms of the sale transaction, including purchase price, payment terms, and completion mechanics
5. Property Transfer: Provisions regarding the transfer of title, registration requirements, and relevant documentation
6. Leaseback Terms: Core lease provisions including term, rent, payment schedule, and use of property
7. Representations and Warranties: Standard representations regarding ownership, authority, property condition, and compliance with Shariah principles
8. Property Maintenance and Repairs: Obligations regarding property upkeep, maintenance responsibilities, and improvement rights
9. Insurance and Risk: Insurance requirements, risk allocation, and property damage provisions
10. Default and Termination: Events of default, remedies, and termination rights for both sale and lease components
11. Governing Law and Dispute Resolution: Choice of Saudi law, jurisdiction, and dispute resolution mechanisms
12. Notices: Communication procedures and contact details for formal notices
13. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments
1. Property Management: Required for complex commercial properties requiring specific management arrangements
2. Service Charges: Needed for properties in multi-tenant buildings or complexes with shared services
3. Subletting and Assignment: Include when the lessee requires rights to sublet or assign the lease
4. Break Options: Optional early termination rights for either party
5. Purchase Option: Right for lessee to repurchase the property under specified conditions
6. Environmental Compliance: Required for industrial properties or where environmental risks exist
7. Development Rights: Include if property development or major alterations are contemplated
8. Security Deposits: Include if additional security is required beyond rent payments
9. Zakat Provisions: Specific arrangements for Islamic tax obligations
10. Force Majeure: Extended provisions for force majeure events beyond standard terms
1. Property Description: Detailed legal and technical description of the property, including plans and title details
2. Purchase Price and Payment Terms: Detailed breakdown of purchase price, payment schedule, and mechanics
3. Rent Schedule: Detailed rent payment terms, including amounts, payment dates, and review mechanisms
4. Condition Survey: Initial property condition report and inventory
5. Permitted Use: Detailed specifications of allowed property uses and restrictions
6. Service Level Requirements: Maintenance and service standards if applicable
7. Form of Transfer Documents: Templates for property transfer documentation
8. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements
9. Initial Fit-out Specifications: Details of any agreed initial property modifications or improvements
10. Shariah Compliance Certificate: Confirmation of transaction structure's compliance with Islamic law principles
Authors
Real Estate
Banking & Financial Services
Manufacturing
Retail
Logistics & Warehousing
Healthcare
Education
Hospitality
Industrial
Commercial Property
Islamic Finance
Legal
Finance
Real Estate
Operations
Facilities Management
Risk & Compliance
Treasury
Corporate Development
Investment
Property Management
Chief Financial Officer
Real Estate Director
Property Manager
Legal Counsel
Finance Manager
Asset Manager
Facilities Manager
Investment Director
Corporate Treasurer
Shariah Compliance Officer
Real Estate Investment Manager
Operations Director
Risk Manager
Commercial Director
Property Development Manager
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