Law
No. (26) of 2007
Regulating
the Relationship between Landlords and Tenants
in
the Emirate of Dubai[1]
ـــــــــــــــــــــــــــــــــــــــــــــــ
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;
Federal Law No. (10) of 1992 Issuing the Law of Evidence in Civil and
Commercial Transactions;
Decree No. (2) of 1993 Establishing a Special Tribunal for the Settlement
of Disputes between Landlords and Tenants; and
Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency,
Do hereby issue this Law.
Title
Article (1)
This Law will be cited as "Law
No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in
the Emirate of Dubai".
In implementing the provisions of this Law, the
following words and expressions will have the meaning indicated opposite each
of them, unless the context implies otherwise:
Emirate: |
The Emirate of Dubai. |
RERA: |
The Real Estate Regulatory
Agency. |
Real Property: |
Immovable property and everything
affixed or annexed to it and which is leased out for purposes of
accommodation or conducting a business activity, trade, profession, or any
other lawful activity. |
Lease Contract: |
A contract by virtue of
which the Landlord is bound to allow the Tenant use of the Real Property for
a specific purpose, over a specific term, and in return for a specific
consideration. |
Landlord: |
A natural or legal
person who is entitled by law or agreement to dispose of Real Property. This
also includes a person to whom ownership of the Real Property is transferred
during the term of a Lease Contract, an agent or legal representative of the
Landlord, or a Tenant who is permitted by the Landlord to sub-let the Real
Property. |
Tenant: |
A natural or legal
person who is entitled to use Real Property by virtue of a Lease Contract, or
any person to whom the lease is legally transferred from the Tenant. |
Sub-tenant: |
A natural or legal
person who is entitled use of the Real Property or any part thereof by virtue
of a Lease Contract entered into with the Tenant. |
Rent: |
The specified
consideration which the Tenant will be bound to pay by virtue of the Lease
Contract. |
Tribunal: |
The Special Tribunal for the Settlement of Disputes between
Landlords and Tenants. |
Notice: |
A written notification
sent by either party to the Lease Contract to the other through the Notary
Public, or delivered by registered post, by hand, or by any other
technological means approved by law. |
Article (3)
The provisions
of this Law will apply to Real Property leased out in the Emirate, including
vacant and agricultural lands, but excluding hotel establishments and Real
Property provided by natural or legal persons as accommodation to their employees at no charge.
1.
The contractual relationship between Landlord and Tenant will be
regulated by a written Lease Contract signed by both parties and detailing, in
a manner allowing no room for uncertainty, a description of the leased Real
Property, the purpose of the Lease Contract, the name of the owner, the number
and type of the land, and the area where the Real Property is located. It will also
determine the term of the Lease Contract, the Rent, and payment method.
2.
All Lease Contracts related to Real Property which is subject to the
provisions of this Law and any amendments thereto will be registered with RERA.
Judicial authorities and Government departments, authorities, and corporations may
not consider any dispute or claim or otherwise take any action relating to a Lease
Contract unless such Contract is registered with RERA in accordance with the relevant
rules and regulations.
The term of a Lease
Contract must be specified. Where the term is not specified in the Lease
Contract or where it is impossible to prove the alleged
term, the Lease Contract will be deemed valid for the period specified
for payment of the Rent.
Article (6)
Where the term of a Lease Contract expires, but the Tenant continues to
occupy the Real Property without any objection by the Landlord, the Lease
Contract will be renewed for the same term or for a term of one year, whichever
is shorter, and under the same terms as the previous Lease Contract.
Article (7)
Where a Lease
Contract is valid, it may not be unilaterally terminated during its term by the
Landlord or the Tenant. It can only be terminated by mutual consent or in
accordance with the provisions of this Law.
Article (8)
The term of a sub-lease
contract entered into between the Tenant and Sub-tenant will expire upon the expiry
of the term of the Lease Contract entered into between the Landlord and Tenant,
unless the Landlord expressly agrees to extend the term of the sub-lease
contract.
Landlord and Tenant
must specify the Rent in the Lease Contract. In any event, the Rent may not be
increased nor may any of the terms of the Lease Contract be amended before the lapse
of two years as of the date when the original contractual relationship was established.
Article (10)
RERA will have
the authority to establish criteria relating to percentages of Rent increase in
the Emirate in line with the requirements of the prevailing economic situation
in the Emirate.
Article (11)
Unless otherwise agreed, the Rent will cover use of the Real Property amenities
such as swimming pools, playgrounds, gymnasiums, health clubs, car parks, and
other amenities.
Article (12)
The Tenant will pay the Landlord the
Rent on the dates mutually agreed upon. Where there is no agreement or where it
is impossible to verify the payment dates, the Rent must be annually paid in
four (4) equal instalments to be paid in advance.
Article (13)
1.
Subject to the provisions of Article (9) of this Law and for the
purposes of renewing the Lease Contract, the Landlord and Tenant may review the
Rent, and if they do not reach an agreement and it is proved necessary to
extend the term of the Lease Contract, the Tribunal may decide on extending the
Lease Contract and determine the Rent based on the average Rent of similar Real
Property.
2.
The Tribunal will determine the average
rental value of similar Real Property in accordance with the legislation adopting
criteria and amount of Rent, proposed by RERA, taking into account the
condition of the Real Property and the prevailing market rate of Rent of
similar Real Property within the same area.
Article (14)
Where either
of the two parties to a Lease Contract do not wish to renew the Lease Contract or
wish to amend any of its terms, such party must notify the other party of such
intent no less than ninety (90) days before the date on which the Lease
Contract expires, unless otherwise agreed by the parties.
The Landlord will
be bound to hand over the Real Property in good condition, which allows the Tenant
full use stated in the Lease Contract.
Article (16)
Unless
otherwise agreed by the parties, the Landlord will, during the term of the Lease
Contract, be responsible for the Real Property’ maintenance works and for repairing
any defect or damage that may affect the Tenant's intended use of the Real
Property.
Article (17)
The Landlord
may not make to the Real Property or any of its amenities or annexes any
changes that would preclude the Tenant from full use of the Real Property as
intended. The Landlord will be responsible for such changes whether made by him
or any other person authorised by the Landlord. Further, the Landlord will be
responsible for any defect, damage, deficiency, and wear and tear occurring to
the Real Property for reasons not attributable to the fault of the Tenant.
Article (18)
The Landlord
must provide the Tenant with the approvals required to be submitted to the
competent official entities in the Emirate whenever the Tenant wishes to carry
out decoration works or any other works that require such approvals, provided
that such works do not affect the structure of the Real Property and that the Tenant
has the official documents requesting such approvals.
The Tenant must
pay the Rent on due dates and maintain the Real Property in such a manner as an
ordinary person would maintain his own property. Without prejudice to the
Tenant's obligation to carry out the restorations that have been agreed upon or
which are customary for Tenants to undertake, the Tenant may not make any
changes or carry out any restoration or maintenance works to the Real Property unless
so permitted by the Landlord and after obtaining required licences from the
competent official entities.
Article (20)
When entering
into a Lease Contract, the Landlord may obtain from the Tenant a security
deposit to ensure maintenance of the Real Property upon the expiry of the Lease
Contract, provided that the Landlord undertakes to refund such deposit or
remainder thereof to the Tenant upon the expiry of the Lease Contract.
Article (21)
Upon the expiry
of the term of the Lease Contract, the Tenant will must surrender possession of
the Real Property to the Landlord in the same condition in which the Tenant
received it at the time of entering into the Lease Contract except for ordinary
wear and tear or for damage due to reasons beyond the Tenant's control. In the
event of dispute between the two parties, the matter must be referred to the Tribunal
to issue an award in this regard.
Article (22)
Unless the Lease Contract states
otherwise, the Tenant must pay all fees and taxes due to Government entities and
departments for use of the Real Property as well as any fees or taxes
prescribed for any sub-lease.
Article (23)
Unless otherwise agreed by the
parties, upon vacating and surrendering possession of the Real Property, the Tenant
may not remove any leasehold improvements made by the Tenant.
Article (24)
Unless
otherwise agreed by the parties to the Lease Contract, the Tenant may not
assign the use of or sub-lease the Real Property to third parties unless
written consent of the Landlord is obtained.
1.
The Landlord may seek eviction of the Tenant from the Real Property before
the expiry of the Lease Contract term in any of the following cases:
a.
Where the Tenant fails to pay the Rent or any part
thereof within thirty (30) days from the date of service of Notice to pay on the
Tenant by the Landlord;
b.
Where the Tenant sub-lets the Real Property or any
part thereof without obtaining the Landlord's written approval. In this case,
the eviction will apply to the Sub-tenant, who will have the right to claim
compensation from the Tenant;
c.
Where the Tenant uses the Real Property or allows
others to use it for any illegal purpose or for a purpose which breaches public
order or morals;
d.
Where the Tenant makes a change to the Real Property that
endangers its safety in a manner that makes it impossible to restore the Real
Property to its original state, or damages the Real Property wilfully, or
through gross negligence, by failing to exercise due diligence, or by allowing
others to cause such damage;
e.
Where the Tenant uses the Real Property for a purpose
other than that for which the Real Property was let, or otherwise uses such Real
Property in a manner that violates planning, construction, and use-of-land
regulations in force in the Emirate;
f.
Where the Real Property is condemned, provided that the
Landlord proves this by a technical report attested to by Dubai Municipality, or
g.
Where the Tenant fails to observe any obligation imposed
on him by this Law or any of the Lease Contract terms within thirty (30) days
from the date a Notice to perform such obligation or term is served upon him by
the Landlord.
2.
Upon expiry of the Lease Contract, the Landlord may seek eviction of the
Tenant from the Real Property if:
a.
a competent Government entity requires demolition and
reconstruction of the Real Property as per urban development requirements in
the Emirate;
b.
the Real Property is in a condition that requires full
renovation or comprehensive maintenance that cannot be carried out in the
presence of the Tenant in the Real Property, provided that the condition of the
Real Property is verified by virtue of a technical report attested to by Dubai
Municipality;
c.
the Landlord wishes to demolish the Real Property to
reconstruct it or add any new constructions that will prevent the Tenant from
using the Real Property, provided that the Landlord obtains the required
permits from the competent entities; or
d.
the Landlord wishes to repossess the Real Property for
use by him personally or by any of his first-degree relatives.
However, for each of the above-mentioned four cases, the Landlord must
notify the Tenant of the eviction reasons at least ninety (90) days prior to the
expiry of the Lease Contract.
Article (26)
If, upon expiry
of the Lease Contract, the Landlord requests possession of the Real Property
for his personal use or for use by any of his first-degree relatives, and the
Tribunal awards him such possession, the Landlord may not rent the Real
Property to a third party before the lapse of at least one (1) calendar year
from the date of repossessing the Real Property. Otherwise, the Tenant may
request that the Tribunal award him an appropriate compensation.
The Lease
Contract does not expire upon the death of the Landlord or the Tenant. The contractual
relationship continues with the heirs, unless the heirs of the Tenant wish to
terminate such relationship, provided that termination comes into effect no
less than thirty (30) days from the date of notifying the Landlord of such intent
or the expiry date of the Lease Contract, whichever comes first.
Article (28)
Transferring the ownership of Real
Property to a new owner does not affect the Tenant's right to continue to
occupy the Real Property by virtue of the Lease Contract entered into with the
previous owner, provided that such Lease Contract has a fixed term.
Article (29)
1.
The Tenant has the right of first refusal to return to the Real Property
after it has been demolished, reconstructed, renovated, or refurbished,
provided that the Rent is determined in accordance with the provisions of
Article (13) of this Law.
2.
The Tenant must exercise the right of first refusal referred to in the
preceding paragraph within a period not exceeding thirty (30) days from the
date the Tenant is notified by the Landlord.
Article (30)
If the Tribunal issues an award
terminating the Lease Contract and the Real Property is occupied by a Sub-tenant
under a contract entered into with the Tenant and approved by the Landlord, the
Sub-tenant may continue to occupy the Real Property under the terms of the sub-lease
contract.
Article (31)
Filing a claim to evict the Tenant does
not exempt the Tenant from paying the Rent for the whole period during which
the claim is considered, and until an award is rendered and executed.
Article (32)
If the Landlord
and Tenant agree in the Lease Contract or in any other subsequent agreement to refer
any dispute arising between them out of the Lease Contract performance to
arbitration, neither party may take any action that would affect the Real
Property or the parties' rights and obligations as set out in the Lease
Contract.
The Tribunal may,
upon the request of the Landlord or the Tenant, issue any interim awards it
deems appropriate to preserve such rights and legal position until the
arbitration award is rendered.
Where a
dispute arises and the Landlord and Tenant have not agreed on the arbitrators
or if one or more of the agreed on arbitrators refrains from doing the work,
resigns, is removed, or disqualified, or if an issue arises preventing the
arbitrator from doing his work, and there was no agreement between the parties
in this regard, the Tribunal, upon the request of either party, will appoint the
arbitrator(s). The number of arbitrators appointed by the Tribunal must be
equal to or complete the number of arbitrators agreed on.
Article (34)
The Landlord may not disconnect services from the Real Property or
disturb the Tenant in his use of the Real Property in any manner. If this
happens, the Tenant may have recourse to the police station under whose
jurisdiction the Real Property falls to seek a remedy for the violation or to
file a police report regarding the violation. He also may have recourse to the
Tribunal by filing a claim for damages for any loss he may have suffered,
supported by official reports that support the existence of such violation.
Article (35)
The awards relating to vacating the Real
Property will be executed through the Tribunal and pursuant to the rules and
procedures issued in this respect. Apart from such awards, other awards issued
by the Tribunal will be executed by the Execution Section of Dubai Courts.
Article (36)
RERA will issue the bylaws and resolutions
required for the implementation of the provisions of this Law and will submit the
same to the Chairman of the Executive Council for approval.
Article (37)
This Law will be
published in the Official Gazette and will come into force after sixty (60) days
from the date of publication.
Mohammed
bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 26
November 2007
Corresponding to 16 Thu- al-Qidah 1428 A.H.
©2015 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.