Lease Agreement template

Lease Agreement Template Compliant with the Regulations of the Kingdom of Saudi Arabia

Praise be to God, and peace and blessings be upon the Messenger of God. This contract was agreed on / / AH, corresponding to / / AD, between: First Party: Mr/Ms ................, National ID/Iqama No.: ............, Expiry date: / / AH, National Address: ................, City: ......., Mobile: ......., Email: ......., hereinafter referred to as the “Landlord”. Second Party: Mr/Ms ................, National ID/Iqama No.: ............, Expiry date: / / AH, National Address: ................, City: ......., Mobile: ......., Email: ......., hereinafter referred to as the “Tenant”. Under this contract, the First Party has leased to the Second Party: Description of the leased premises: Residential apartment No. (....) in the property located on ........ Street, ........ District, in the city of ........, to be used as a private residence only. The leased premises include the following fixtures and fittings: wardrobes, a fitted kitchen, air-conditioning units and a refrigerator. Term of the contract: This lease is made for a term of (.......), starting on: / / AH and ending on: / / AH. If the parties wish to renew, a new contract shall be signed. Rent:

• Rent: (.........) Saudi riyals per year.
• Rent is payable in advance every (.......) against receipts signed by the Landlord or the Landlord's representative.
• Rent shall be paid by (bank transfer to IBAN: SA.............................. / payment through the Ejar platform); cash payment is not recognised without a signed receipt.

Value added tax:

• Residential leases are exempt from value added tax (VAT), so no VAT is added to rent for a private residence.
• Commercial leases (offices, shops and warehouses), however, are subject to VAT at the statutory rate, and the landlord must issue a tax invoice if registered with the Zakat, Tax and Customs Authority (ZATCA).
• If the leased property is mixed (residential and commercial units), each part shall be treated separately for tax purposes.

Mutual obligations:

1. Landlord's obligations:
   • To provide the leased premises in a habitable condition.
   • To repair damage resulting from normal use or natural causes.
2. Tenant's obligations:
   • To take care of the leased premises and their fixtures and fittings.
   • Not to make substantial alterations without the Landlord's written consent.
   • To hand over the leased premises at the end of the contract in good condition, allowing for normal wear and tear.

Security deposit:

• A refundable deposit of (.........) Saudi riyals shall be paid on signing the contract. It shall be refunded at the end of the contract after deducting the cost of any damage.
• The deposit shall be returned within (.......) days of the premises being vacated and handed over, and the Tenant shall be given a statement of any amounts deducted with supporting documents.

Additional terms:

• The Tenant shall bear any fees or taxes arising from the use of the leased premises.
• The Tenant may not sublet the leased premises to others or assign the contract without the Landlord's written consent.
• The Tenant shall pay the utility bills (electricity, water, gas).

Dispute resolution: In the event of a dispute, it shall be resolved amicably between the parties; if no agreement is reached, the case shall be referred to the competent courts in the Kingdom of Saudi Arabia, in accordance with the Kingdom's laws and in particular the Civil Transactions Law. Notices: The National Address, mobile number and email stated above are each party's chosen address for service, and any notice sent to them shall take effect. Signatures: This contract has been executed in two copies signed by both parties, each party retaining one copy. Landlord's signature: ............................ Tenant's signature: ............................