Resolution
No. (1) of 2018
Terminating
Tenancy Contracts of
Real Property in
Al
Jaddaf Area and Evicting Their
Occupiers for Public Benefit[1]
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We,
Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal Law No. (5) of 1985 Issuing the
Civil Code of the United Arab Emirates and its amendments;
Law No. (26) of 2007 Regulating the
Relationship between Landlords and Tenants in the Emirate of Dubai and its
amendments;
Law No. (7) of 2013 Concerning the Land
Department; and
Decree No. (26) of 2013 Concerning the Rental
Dispute
Settlement Centre in the Emirate of Dubai,
Do hereby issue
this Resolution.
The following words and expressions,
wherever mentioned in this Resolution, will have the meaning indicated opposite
each of them unless the context implies otherwise:
|
Emirate: |
The Emirate of Dubai. |
|
DLD: |
The Land Department. |
|
RDSC: |
The Rental Dispute Settlement Centre
in the Emirate of Dubai. |
|
Director General |
The director general of the DLD. |
|
Project: |
Al Jaddaf Development Project. |
|
Real Property: |
Any of the land, buildings, or
structures impacted by the Project. |
|
Landlord: |
An
owner of Real Property. |
|
Tenant: |
A natural or legal person who uses
Real Property, or any part thereof, under a Tenancy Contract he concludes
with the Landlord. |
|
Subtenant: |
A natural or legal person who uses
Real Property, or any part thereof, under a Tenancy Contract he concludes
with the Tenant. |
|
Occupier: |
A Tenant or Subtenant who occupies
Real Property. |
|
Committee: |
The Project’s compensation committee formed pursuant to this
Resolution. |
|
Compensation: |
The cash amount to which an Occupier is entitled by reason of the termination of his Tenancy
Contract and his eviction from the Real
Property. |
This Resolution aims to:
1. redevelop Al Jaddaf area with a view to fulfilling the urban development requirements of the Emirate; and
2. regulate the payment of equitable
Compensation to Occupiers for the termination of their Tenancy Contracts and for their eviction from the Real Property to which this Resolution applies.
Pursuant to this Resolution, all Tenancy
Contracts concluded in respect of the Real Property located on the land whose
boundaries and area are demarcated in the Plan attached to this Resolution
are terminated. All Occupiers of that Real Property must vacate it in
accordance with the procedures and time frames prescribed in this Resolution.
Occupiers are hereby entitled to
equitable Compensation for the termination of their Tenancy Contracts and their
eviction from
the Real Property. The Compensation will be assessed by the Committee.
a. A committee named the “Al Jaddaf Project Compensation Committee” will be formed at the DLD pursuant to a resolution of the Director General. The Committee will be comprised of a chairman, a vice chairman, and a number of experienced, competent, and specialised members, selected from among the DLD employees and other persons.
b. The resolution forming the Committee will determine its terms of reference, and the procedures for holding its meetings and passing its resolutions.
c. The Committee may seek assistance from experts and specialists, as it deems
appropriate, to attend its meetings, provided that they do not have a vote in
its deliberations. The Committee may also seek assistance
from the competent organisational units of the DLD.
The Committee will be in
charge of determining
the amount of equitable Compensation due to
the Occupiers of
the Real Property to which this Resolution applies.
The Compensation
will be assessed based on the rules and standards
prescribed in this Resolution.
The following procedures will be
followed in evicting Occupiers from the Real Property to which this
Resolution applies:
1. The Committee will inspect the Real Property and verify its description, parts, and type of use; and will verify the existence and term of the Tenancy Contract concluded in respect of the Real Property.
2. The Committee will compile a list of Occupiers, determine the Compensation to which each Occupier is entitled, and refer the list to the DLD to proceed with the eviction process and the disbursement of Compensation.
3. Upon receiving the list of Occupiers from the Committee, the DLD will:
a. notify each Occupier of the eviction decision, and of the Compensation to which he is entitled, by registered mail; through announcement in a daily widely circulated local newspaper; or using any other means determined by the Director General, and request the Occupier to report to the DLD within thirty (30) days from the date of notification or the date of announcement in the newspaper;
b. prepare a report in which the demands of the Occupier and the documents he has submitted are recorded, and provide the Occupier with acknowledgement of receipt of these documents;
c. have the Real Property vacated and hand it over to the Landlord, and pay the Occupier the Compensation to which he is entitled if he accepts the amount of Compensation assessed by the Committee; and
d. proceed with the eviction process if the Occupier does not accept the
amount of Compensation assessed by the Committee, or if he fails to report to
the Committee within the time limit stipulated in sub-paragraph (3)(a) of this
Article. This may not prejudice the Occupier’s right to challenge the amount of
Compensation in accordance with this Resolution, or resort to the RDSC to seek reassessment
of the Compensation.
a. The Occupier will be granted a time limit not exceeding one (1) year to vacate the Real Property and hand it over to the Landlord. This time limit will commence from the date on which the notification is served on him or from the date of the announcement stipulated in sub-paragraph (3)(a) of Article (7) of this Resolution. The Occupier may not be paid the Compensation unless he vacates the Real Property.
b. Notwithstanding the provisions of paragraph (a) of this Article, the Director General may:
1. shorten the time limit to no less than three (3) months where the Project implementation is time-critical; and
2. order the payment of part of the Compensation to the Occupier prior to eviction if this is warranted by valid reasons, in which case the Compensation may not be paid unless the Occupier provides the relevant guarantees prescribed by the DLD to ensure that he will vacate the Real Property within the prescribed time limit.
c. Where the Occupier fails to vacate the Real Property within the prescribed time limit, the DLD may take the necessary action to evict him through the Execution Department of the RDSC, in which case the Occupier will bear the execution fees; the eviction expenses; and, where applicable, the rental value of similar Real Property for the period extending from expiry of the eviction time limit to the date of handover of the Real Property. These fees, expenses, and rent will be deducted from the Compensation payable to the Occupier.
The execution of an eviction decision
will not be affected by any
challenge of the
amount of compensation by the Occupier, whether this
challenge is
filed with the Grievance Committee formed pursuant to Article (15) of this
Resolution or with the RDSC. The eviction procedures will not be affected by any claims filed,
or court
judgements sought, by any concerned party in respect of
the Real
Property.
When assessing the Compensation, the
following rules and standards will be observed:
1. the parts of the Real Property, including the buildings, structures, decorations, fences, and trees, that are developed by the Occupier; and any other things that may affect the assessment of Compensation;
2. the term of the Tenancy Contract; and the rent stipulated therein or the rental value of similar Real Property, whichever is higher;
3. any loss or damage that may be sustained by the Occupier upon vacating the Real Property. The burden of proving this loss or damage lies with the Occupier;
4. any rent paid by the Occupier for a period during which he has not used the Real Property;
5. the Compensation must be assessed in line with the market prices prevailing at the time of vacating the Real Property. The assessment of Compensation may not be affected by any subsequent increase or decrease of the prices of the cultivated plants, or the structures, developed on the Real Property;
6. no Compensation may be paid for any improvements, additions, or structures made by the Occupier after the effective date of this Resolution;
7. the value of the structures, fittings, and equipment that can be removed from the Real Property without causing any loss or damage will not count towards the assessment of the Compensation. The Compensation will be restricted to the costs of removal, transportation, and re-installation of these structures, fittings, and equipment.
a. Where the Real Property is occupied by Subtenants, the Tenant must provide the names of these Subtenants in writing to the Landlord within the time limit referred to in sub-paragraph (a)(3) of Article (7) of this Resolution.
b. A Subtenant will be entitled to Compensation only for the value of the structures, fences, or cultivated plants developed by him on the Real Property. This Compensation will be assessed as stipulated Article (10) of this Resolution.
c. If it is established after the Tenant receives the Compensation that he has sublet the Real Property to Subtenants whom the Committee was unable to identify for any reason, or whom the Tenant has not declared to the Landlord or to the Committee, the Tenant will be solely liable for compensating these Subtenants.
Upon completion of the Project, the
Occupiers who have
been evicted in accordance with this Resolution will not have the right of first refusal
to return to the Real Property under the above-mentioned Law No. (26) of
2007.
No Compensation will be due in respect
of:
1. the Real Property occupied by persons unlawfully or without a legal justification; and
2. the structures constructed on Real Property without a permit, in violation of the legislation in force in the Emirate, or in breach of the Tenancy Contract.
A Landlord must deposit the
Compensation determined by the Committee into the relevant escrow account maintained
by the DLD,
in order for the DLD
to disburse
that amount to the persons entitled to it in accordance with the
procedures it adopts in this respect.
An Occupier may
challenge the Compensation amount determined by the Committee within thirty (30) days from
expiry of the time limit stipulated in sub-paragraph (a)(3) of
Article (7) of this Resolution. The challenge will be filed with a committee named the
“Grievance Committee” to be formed for this purpose at the DLD
by the Director General.
a. The Grievance Committee must determine any challenge filed with it within thirty (30) days from the date of its submission. The decision issued by the Grievance Committee in respect of the challenge will be final.
b. For the purpose of determining a challenge filed with it, the Grievance Committee may:
1. conduct a re-inspection of the Real Property;
2. review the grounds and rules for assessing the Compensation or for valuating the structures, decorations, fences, or cultivated plants developed by the Occupier on the Real Property and any other things that have been taken into account in assessing the Compensation;
3. request any additional data or documents it deems necessary for determining the challenge;
4. uphold the Committee’s decision determining the Compensation amount or conduct a reassessment of the Compensation; and
5. seek assistance from experts and specialists, as it deems appropriate, where the reassessment of Compensation requires the participation of persons with financial and technical skills.
Where the Occupier is not satisfied with the
Grievance Committee’s decision, he may file a claim with
the RDSC against the Landlord to seek reassessment
of the equitable
Compensation for the eviction from the Real Property.
In this case, the DLD must retain the
Compensation deposited with it until a final judgement is rendered in this
respect.
The provisions of this Resolution apply
to all Real Property eviction procedures that are pending
by the effective date hereof.
All procedures completed prior to the effective date of this
Resolution are hereby deemed valid as if undertaken in
accordance herewith.
The Director General will issue the
resolutions required for the implementation of this Resolution. These
resolutions will be published in the Official Gazette of the Government of
Dubai.
This Resolution comes into force on the
day on which it is issued, and will be published in the Official Gazette.
Mohammed bin
Rashid Al Maktoum
Ruler of Dubai
Issued
in Dubai on 23 January
2018
Corresponding
to 6 Jumada al-Ula 1439 A.H.
©2023 The Supreme Legislation Committee in the
Emirate of Dubai
[1]Every effort has been made to produce an
accurate and complete English version of this legislation. However, for the
purpose of its interpretation and application, reference must be made to the
original Arabic text. In case of conflict, the Arabic text will prevail.