Today, Advocate Isa Bin Hyder, founder and CEO of Bin Haidar Advocates and Legal Consultants, will provide clarifications regarding the laws governing relations between landlords and tenants in Dubai.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, as Ruler of Dubai, issued Law No. 26 of 2007 to regulate the relationship between tenants and landlords in Dubai.
The aforementioned law was issued in the light of the Articles included in Federal Law No. 5 of 1985 concerning leasing and civil transactions issued by the Government of the United Arab Emirates and its amendments; and Federal Law of Evidence No. 10 of 1992; and Decree No. 2 of 1993, concerning the formation of a special Legal Committee for the resolution of disputes between landlords and tenants; and Law No. 16 of 2007, concerning the establishment of the Real Estate Market Regulation Organization; all of these Articles have been superseded by Articles 2, 3, 4, 9, 13, 14, 15, 25, 26, 29 and 36, in accordance with Law No. 33 of 2008. Section 1 of this Law stipulates that the law should be called "Law No. 26 of 2007 on the Regulation of Relations between Landlords and Tenants of Real Estate in the Emirate of Dubai".
Article 2 (superseded) defines the meaning of the words and terms used hereinafter and prescribes that the word "Emirate" should be used narrowly and only in the meaning "emirate of Dubai", that is, the law should only manage real estate located in the emirate Dubai And the word “Committee” means a legal committee that deals with the resolution of disputes arising between landlords and tenants, which are identified as the landlord and tenant. At the same time, Article 3 (amended) stipulates the extent of legal validity of the provisions of this Law that apply to land plots and real estate rented in the Emirate, with the exception of real estate units created by individuals - "individuals" or corporate bodies - "official agencies and corporations "for the free resettlement of their own employees.
Paragraph "A" of Article 4 (amended) clarifies that the relationship between the lessor and the lessee must be built in accordance with the lease, which includes a description of the leased property, the purpose of the lease, the validity and cost of the lease, payment method, name of the owner in case of if the latter is not a landlord and has appointed a specialized company to conduct rental operations on his own behalf. According to paragraph "B" of this Article, all contracts and any additions to them must be registered with the "Real Estate Market Regulation Organization", and Article 5 stipulates the need to determine the rental period. If this period has not been agreed in advance, or if it is difficult to determine the duration of the lease, then the lease must be limited to the period designated for paying the rent. At the same time, Article 6 incorporates the concept of mutual proposed confirmation of renewal, prescribing that “if the lease period has already expired and the tenant continues to live in the property without any objection from the lessor, then such a contract should be considered extended to the same "and for the same period or one year, depending on which period is shorter."
On the other hand, Article 7 warns both parties to a contract from unilaterally terminating the lease and prohibits the unilateral cancellation of the contract during its term, since such cancellation must occur by mutual agreement of the parties and in accordance with the provisions of this Law.
Although Article 8 provides for sub-tenants, in cases where the Law or the lessor allows the main tenant to sublet the leased unit of real estate to the principal tenant, all such relationships are subject to the same conditions as the main lease.
Consequently, the subtenant does not have the right to linger in the leased real estate unit after the lease expires, unless the lessor explicitly agrees to extend this lease.
Paragraph "A" of Article 9 prescribes that both parties are required to determine the cost of the lease. If this condition was neglected or it was difficult to prove it, then the rental price should be determined in accordance with the prices of other similar units of real estate, and the party that determines this value in accordance with paragraph "B" of this Article should be the aforementioned Committee , as the criteria for the periodic increase in the cost of rent, corresponding to the coefficient of inflation and the economic situation in the Emirate, or any other factors that the Committee considers necessary, will be taken into account. In this regard, this Committee should also take part in establishing criteria for increasing the cost of rent, which should be consistent with the general economic situation, in accordance with Article 10 of this Law. At the same time, Article 11 stipulates the tenant's rights regarding the benefits offered in the property he rents, such as car parking, swimming pools and so on. And Article 12 describes the method and time of determining the cost of rent. If no contract has been concluded, payment must be made in four equal parts during the year. Article 13 (amended) allows both parties to amend the terms of the contract or to increase / decrease the cost of rent. In the event that there is no contract, this Committee shall establish a fair value. In this situation, any party wishing to submit an amendment or correction is required to notify the other party at least 90 days in advance, unless otherwise agreed otherwise, in accordance with Article 14. In addition, Article 15 establishes that the lessor must to hand over a unit of real estate in proper condition for use, unless there have been preliminary agreements on providing it to the tenant without final finishing so that the tenant does it on his own. Moreover, Article 16 stipulates that the lessor must periodically carry out scheduled and cosmetic repairs without changing the conditions for renting the property or violating, for any reason, the conditions of use by the tenant of the premises that were leased to him (Article 17).
On the other hand, the landlord must give his consent to the tenant so that the latter can represent himself in the official bodies, receiving permits for decorative or repair work, ensuring that these works do not damage the building structures of the real estate. At the same time, Article (19) obliges the tenant to pay the rent on time and allows the lessor to take a cash deposit from the tenant as a guarantee for repair work in real estate at the end of the contract (Article 20). Also, Article 21 stipulates that the tenant is obliged to return the leased property in the same condition in which it was originally received, except for natural physical depreciation, at the same time as paying all required fees and duties in accordance with Article 22.
At the same time, Article 23 warns the tenant against taking out any improvements he has established during his departure from the rented premises, unless both parties have agreed otherwise. Moreover, Article 24 warns the tenant against transferring or subleasing the leased premises to someone, unless written permission from the lessor has been obtained. On the other hand, Article 25 defines cases in which the tenant must have the right to leave the leased property before the expiration of the lease, for example, inability to pay the lease after receiving a warning, or subleasing the leased premises without the knowledge of the owner of the property, or using the leased premises for illegal purposes, or its use in a manner that violates public order and social ethics, or if the tenant leaves the lease This premises for the purposes of its business, without settling in it, or if the rented property is in a state close to destruction, or if the tenant does not adhere to the conditions stipulated by law, or if the architectural development of the Emirate requires that the rented property be destroyed.
A warning regarding all of the above should be sent through a notary public or registered mail. In addition, the owner may also call for the release of a unit of real estate at the end of the lease, if it is required for demolition or reconstruction of the building, or if the leased premises need to be repaired, or if the landlord wants to use the property to be rented out or to transfer it to someone from their close relatives. In this case, the landlord is obliged to notify the tenant of the reasons forcing him to vacate the premises at least 12 months before the date of the planned departure from the rented premises, in the same manner as indicated above.
If the mentioned Committee gave the lessor the right to repair the rented property, which he intends to use for his own needs or for the needs of his immediate family, then the lessor does not have the right to lease this property to any third party, and can only do this by the expiration of a two-year period, if this is housing, and a three-year period, if the property is used for other purposes, from the moment the repair work is confirmed, and unless the authorized Committee decides otherwise. In addition to the aforementioned cases, the tenant may apply to the Committee for a decision on the payment of compensation for losses incurred.
On the other hand, Article 27 provides that the lease cannot be terminated due to the death of the lessor or tenant, and the lease must continue with the assignees. If the successors of the tenant insist on termination of the lease, the contract may be terminated thirty days after receiving from them a written notice sent to the lessor or at the end of the contract, depending on which date is closer.
Section 28 stipulates that the tenant must not suffer any damage in transferring ownership of the property to another owner, provided that the dates of the lease must be fixed with the previous owner who sold his property to another owner.
At the same time, Article 29 (amended) provides the lessee with the right to return to the same unit of housing in the event that the lessor has made a general repair and complete reconstruction in the rental housing, or ordinary repair, after establishing a new rental price. Therefore, the tenant must have a priority right to rent the same property, provided that he confirms his desire to rent this property within thirty days from the receipt by the lessor of a notice regarding this property.
Further, Article 30 protects the subtenant from canceling the lease if the contract drawn up by the main tenant has been confirmed by the lessor. And Article 31 obliges the tenant to establish the cost of the lease, even if the lessor has launched a lawsuit to free the property during the duration of the entire claim, until a court order is issued.
Article 32 allows both Parties to agree on arbitration and authorizes the relevant Committee to issue any internal decisions regarding the restoration of the rights of both parties until a final decision is reached through arbitration. Moreover, Article 33 gives the authority to the appropriate Committee to appoint arbitrators at the request of either party, given that their number must be equal to or supplementing the amount agreed upon in advance. In addition, Article 34 prohibits the lessor from disconnecting utilities in real estate or restricting tenant access to them. In this case, the tenant may file a complaint with the police or the relevant Committee, while Article 35 stipulates how to implement decisions on the release of real estate through this Committee, which is required to submit an application to the Dubai Law Enforcement Division to strengthen and enforce its decisions.
In fact, this augmented Law clarified many of the positions related to rental relations in Dubai and fully provided for ways to establish a rental relationship between a landlord and a tenant, as well as methods for determining rental rates, rights and obligations of the parties. And, despite the fact that the law prescribes that "the contract is considered the link between the parties that concluded it," this Law intervenes in protecting the rights of each of the parties so that it is not exploited by the other party.
Consequently, the owner of the property cannot demonstrate his arrogance towards his property and terminate the lease unilaterally, change the rental period and its value, and also evict the tenant at any time convenient for him. That is why this amended Law was issued in order to stabilize the lease relations and force all parties to justice, by establishing impartial rules common to all, announced above, with the aim of regulating the lease relations so that all parties can live in peace and security, and where each of the parties, I would have the right to a happy residence in this emirate, which flourishes under the wise guidance of its Ruler - Sheikh Mohammed bin Rashid Al Maktoum, who issued this law and its amendments. We hope that similar laws will appear in all other UAE emirates so that all people can enjoy their stay in this hospitable and safe country.
