Administrative Resolution No. (1) of 2020
Issuing the Implementing Bylaw of Decree No. (41)
of 2013
Regulating the Activity of Leasing out Holiday
Homes in the Emirate of Dubai[1]
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The Director General of the Department of Tourism and Commerce
Marketing,
After perusal of:
Law No. (1) of 1997 Establishing
the Department of Tourism and Commerce Marketing and its amendments;
Decree No. (41) of 2013
Regulating the Activity of Leasing out Holiday Homes in the Emirate of Dubai;
and
Executive Council Resolution No.
(49) of 2014 Approving the Fees and Fines Related to the Activity of Leasing
out Holiday Homes in the Emirate of Dubai,
Does 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. |
|
DTCM: |
|
The Department of
Tourism and Commerce Marketing. |
|
Decree: |
|
Decree No. (41) of 2013
Regulating the Activity of Leasing out Holiday Homes in the Emirate of Dubai. |
|
Holiday Homes: |
|
Furnished real property
units designated for conducting the Activity in accordance with the
conditions and criteria stipulated in this Resolution. |
|
Activity: |
|
Engaging, on a regular
and ongoing basis, in leasing out Holiday Homes or taking lease of Holiday
Homes for the purpose of subletting them to Guests. |
|
Establishment: |
|
A corporation or company
licensed to conduct the Activity in the Emirate. |
|
Licensee: |
|
An individual or
Establishment licensed to conduct the Activity in the Emirate. |
|
Initial Approval: |
|
The initial approval
issued by the DTCM to an applicant for a Licence to enable him to apply for a
Licence, in accordance with the requirements prescribed by this Resolution. |
|
Licence: |
|
A document issued by the
DTCM stating that the DTCM authorises a Licensee to conduct the Activity in
the Emirate after verifying that all conditions and requirements stipulated
in this Resolution are met by the Licensee. |
|
Permit: |
|
A document issued by the
DTCM stating that the DTCM approves that a furnished real property unit be
designated as a Holiday Home, after verifying that all conditions,
requirements, and criteria stipulated in this Resolution are met. |
|
Guest: |
|
A natural person who
stays in a Holiday Home, in return for a payment, with the intention of using
it as overnight accommodation. |
|
Holiday Home Lease Contract: |
|
An agreement concluded
between an Establishment and a Guest, stipulating the rights and obligations
of its parties, in accordance with the provisions of the Decree and this
Resolution. |
|
Electronic Portal: |
|
The electronic platform
maintained by the DTCM, or by any other entity approved by the DTCM, through
which applications for Licences, Permits, and any other services stated in
this Resolution, will be received. |
|
Guide: |
|
A document that contains
the technical rules and standards for issuing Initial Approvals, Licences,
Permits, and classification certificates Holiday Homes. |
An Initial Approval will be
issued subject to the following conditions and procedures:
1.
An
application for Initial Approval will be submitted through the Electronic
Portal, on the form prescribed by the DTCM for this purpose, supported by the
following documents:
a.
a copy
of the passport and Emirates Identity Card of the owner, partners, and managing
director of the applicant;
b.
a copy
of the valid commercial licence issued to the applicant by the commercial
licensing authority; and
c.
certificates
of good conduct issued by the competent entity to the owner, partners, and
managing director of the applicant.
2.
Proof of
satisfaction of the technical requirements prescribed by the Guide must be
provided.
3.
The DTCM
will consider the application from a technical perspective to verify that it
meets all relevant conditions and requirements, and that it is accompanied by
all required documents.
4.
The DTCM
will issue its decision in respect of the Initial Approval application upon
verifying that it meets all conditions and requirements.
5.
The DTCM
will give the applicant who is issued with an Initial Approval a time limit of
up to three (3) months, renewable once for the same period, to complete the
procedures for obtaining the Licence. Where this time limit expires without
completing the procedures for obtaining the Licence, the Initial Approval will
be deemed revoked.
6.
Where an
application for Initial Approval is rejected, the DTCM will notify the
applicant of the reasons for rejection. An Initial Approval applicant whose
application is rejected may submit to the DTCM another application.
Licences will be issued, subject to the following
conditions and procedures:
1. A Licence application will be submitted through
the Electronic Portal on the form prescribed by the DTCM for this purpose,
supported by the following documents:
a.
a copy
of the valid Initial Approval;
b.
copies
of the required approvals obtained from the concerned entities in the Emirate;
c.
a copy
of the valid commercial licence issued by the commercial licensing authority;
and
d.
where
the applicant is a legal entity, proof that the applicant has an office for
conducting the Activity.
2.
The DTCM
will consider the application from a technical perspective to verify that it
meets all relevant conditions and requirements and that it is accompanied by
all required documents. For this purpose, the DTCM may conduct field visits and
request any additional documents, data, or information it deems necessary.
3. The DTCM will issue its decision in respect of the
Licence application, upon verifying that it meets all conditions and
requirements.
4. Where the Licence application is approved, the
applicant will be instructed to pay the relevant prescribed fees, whereupon the
DTCM will issue the Licence.
5. Where the Licence application is rejected, the
DTCM will notify the applicant of the reasons for rejection. An applicant whose
Licence application is rejected may submit to the DTCM another application.
a.
A
Licence will be valid for a term of one (1) year, renewable for the same period
subject to the same conditions and procedures prescribed for its initial
issuance. The application for Licence renewal must be submitted to the DTCM
prior to the date of expiry of the Licence.
b. Notwithstanding the provisions of paragraph (a) of
this Article, the DTCM may approve that the term of the Licence be for more
than one (1) year, and up to four (4) years, provided that the Licence
applicant pays the licensing fees prescribed for the whole term of the Licence.
A Licensee,
against whom a Licence revocation decision is issued for any reason whatsoever,
may submit a Licence reinstatement application to the DTCM upon the lapse of
one (1) year from the date of revocation of the Licence, subject to the same
conditions and procedures prescribed for initial issuance of the Licence.
An Establishment may submit, to the DTCM, an
application for establishing a branch in the Emirate, subject to the same
conditions prescribed for Licence issuance, in accordance with the procedures
stipulated in this Resolution and the Guide.
Subject
to the relevant powers vested in the competent entities in the Emirate, a
Licensee may not suspend or cease the Activity without first obtaining the
relevant approval of the DTCM. This approval will be issued in accordance with
the conditions and rules stipulated in the Guide.
A Permit will be issued subject to the following:
1.
The real
property unit must be located in an area where conducting the Activity is
authorised by the DTCM in coordination with the competent entities in the
Emirate.
2.
The real
property unit must fall under any of the following categories:
a.
an
apartment in a building designated for conducting the Activity;
b.
an
apartment in a residential building;
c.
a house/villa
located within a real property compound; or
d.
an
independent villa.
3.
The real
property unit must satisfy the technical specifications and requirements, and
be equipped with the fittings, prescribed by the Guide for the relevant Holiday
Home classification category.
4.
A copy
of the valid passport or Emirates Identity Card of the owner or tenant must be
submitted.
5.
Proof
that the applicant has the right to dispose of the real property unit in
accordance with the provisions of this Resolution must be provided. The sale
and purchase agreement of the real property unit must not include any explicit
provision that precludes using the real property unit as a Holiday Home.
6.
All
other technical requirements stipulated by the Guide must be met.
A Permit will be issued subject to the following
procedures:
1.
A Permit
application will be submitted through the Electronic Portal on the form
prescribed by the DTCM for this purpose, supported by the documents proving
compliance with the requirements stipulated in Article (8) of this Resolution.
2.
The DTCM
will consider the application from a technical perspective to verify that it
meets all relevant conditions and requirements and that it is accompanied by
all required documents. For this purpose, the DTCM may conduct field visits and
request any additional documents, data, or information it deems necessary.
3.
The DTCM
will issue its decision in respect of the Permit application upon verifying
that it meets all conditions and requirements.
4.
Where
the Permit application is approved, the applicant will be instructed to pay the
relevant prescribed fees, whereupon the DTCM will issue the Permit.
5.
Where
the Permit application is rejected, the DTCM will notify the applicant of the
reasons for rejection. An applicant whose Permit application is rejected may
submit to the DTCM another application.
A Permit
will be valid for a term of one (1) year, renewable for the same period subject
to the same conditions and procedures prescribed for its initial issuance. The
application for Permit renewal must be submitted to the DTCM prior to the date
of expiry of the Permit.
The DTCM
may, in accordance with the procedures stipulated in the Guide, suspend or
revoke the Permit of any Holiday Home, prohibiting the conduct of the Activity
therein permanently or temporarily, in any of the following cases:
1.
where
the provisions of the Decree and the resolutions issued in pursuance thereof
are violated;
2.
where
the Licence or Permit is not renewed within the time limits, and in accordance
with the procedures, prescribed by the Guide;
3.
where
the Holiday Home ceases to satisfy any of the Permit requirements or
classification criteria;
4.
where
the Holiday Home is used for other than its intended purpose;
5.
where
the Holiday Home is used for illegitimate or immoral purposes;
6.
where
the Holiday Home is the subject of enforcement of a court judgement;
7.
where
the Holiday Home owner requests its closure; or
8.
in any
other cases determined in accordance with the exigencies of public interest.
A Permit
holder, whose Holiday Home has been closed down, may apply to the DTCM for
re-opening it, where the reasons for the Holiday Home closure cease to exist.
An application for re-opening a closed Holiday Home must be submitted after the
lapse of at least fifteen (15) days from the date of closure. Re-opening a
closed Holiday Home will be approved by the DTCM subject to the rules and
procedures stipulated in the Guide.
Subject to the powers vested in the entities
responsible for registering and reserving trade names, a no-objection
certificate for the approval of a trade name of an Establishment will be issued
subject to the following:
1.
the
proposed trade name may not be similar to any used or reserved trade name;
2.
the
trade name must be consistent with the nature of the Activity;
3.
the
trade name must not include the name “Dubai” or the relevant classification
category; and
4.
the
trade name must not be misleading, or conflicting with public order or morals.
In addition to the obligations prescribed by the
Decree, a Licensee must:
1.
in
conducting the Activity, not prejudice the rights and interests of Guests, and
not impose any unfair obligations or conditions on them;
2.
submit a
comprehensive insurance policy issued by an insurance company licensed to
operate in the Emirate to cover any
damage that Guests may sustain. The insurance policy must be valid for the
entire term of the Licence;
3.
conclude
a Holiday Home Lease Contract with the Guest and provide the Guest with a copy
thereof;
4.
ensure
that the Holiday Home Lease Contracts are consistent with the Licence and
Permit;
5.
perform
all his contractual obligations towards Guests under the Holiday Home Lease
Contracts concluded with them;
6.
perform
his obligations under the Holiday Home Lease Contract, including, handing over
the Holiday Home to the Guest on the date agreed upon in the contract and in a
condition allowing the Guest, throughout the term of the contract, full use of
the Holiday Home as intended, in accordance with the terms agreed upon in the
contract;
7.
not
charge the Guest any costs other than those agreed upon in the contracts
concluded with them;
8.
regularly
provide the DTCM with the Guests information, as prescribed by the DTCM;
9.
prepare
a list of the rules and requirements that a Guest must comply with during his
stay at the Holiday Home; and provide the Guest with a copy of this list to
ensure his knowledge thereof and compliance therewith. These rules and
requirements must be consistent with the relevant resolutions and instructions
issued by the DTCM;
10.
draft,
in accordance with the Guide, a policy for processing complaints raised by
Guests against the Licensee. This policy must be displayed in a prominent place
for easy reference by Guests;
11.
investigate
complaints raised by Guests against the Licensee; take the necessary action concerning
these complaints, and document all relevant information and procedures,
including:
a.
date and
time of receiving the complaint;
b.
complainant’s
information and contact details;
c.
subject
matter of the complaint; and
d.
measures
taken in respect of the complaint, and date and time of implementing such
measures.
12.
use the
Licensee's approved trade name in all dealings with third parties;
13.
include
the Licensee's approved trade name and Permit number in all print and digital
advertisements;
14.
not
promote, describe, or advertise Holiday Homes in a misleading way or to achieve
a purpose that contradicts the provisions of the Decree and this Resolution;
15.
comply
with the maximum occupancy capacity determined in the Holiday Home Permit;
16.
observe
integrity, professionalism, courtesy, and tactfulness in dealing with Guests,
residents of neighbouring real property units, and persons in charge of
managing the building or residential compound where the Holiday Home is
located;
17.
ensure
that the Holiday Home is clean and habitable;
18.
designate
emergency and Guest service contact numbers that are available twenty-four (24)
hours a day, seven (7) days a week;
19.
manage
all Guests’ needs and services in respect of leasing out Holiday Homes;
20.
take
reasonable safety measures and precautions to provide a safe environment for
Guests and visitors, particularly against hazards related to fire, swimming
pools, and well-being facilities;
21.
keep
abreast of, and comply with, the resolutions and instructions issued by the
DTCM;
22.
maintain,
for at least three (3) years, paper and electronic records that contain all
Guest information; and
23.
not
disclose Guest information unless to the concerned Government Entities, or the
competent judicial authority.
a.
In
accordance with the classification criteria prescribed by the Guide, Holiday
Homes will be classified into two categories; deluxe and standard. The DTCM
will issue a classification certificate for each Holiday Home.
b.
The DTCM
may upgrade or downgrade the classification of a Holiday Home based on the
classification criteria prescribed by the Guide.
a.
The DTCM
will issue the Guide, which stipulates all the technical rules and requirements
in respect of Holiday Homes, particularly:
1.
Holiday
Homes classification criteria and procedures;
2.
the
technical requirements that must be met, and the procedures that must be
followed, for the issuance of Initial Approvals;
3.
the
technical requirements that must be met, and the procedures that must be
followed, for the issuance of Licences;
4.
the
technical requirements that must be met, and the procedures that must be
followed, for the issuance of Permits;
5.
procedures
for the issuance of trade name no-objection certificates;
6.
the
technical standards that must be satisfied by, and the fittings that must be
available in, the real property unit in respect of which a Holiday Home permit
is for;
7.
the
procedures for variation of the details, or cancellation, of a Licence or a Permit;
8.
the
procedures for establishing a branch of an Establishment;
9.
the
conditions and procedures for suspending/ceasing the Activity;
10.
the
procedures for closure of a Holiday Home;
11.
the
procedures for variation of the details of a Holiday Home classification
certificate;
12.
the
policy for processing complaints raised by Guests against a Licensee;
13.
the
essential terms and conditions that must be stipulated in Holiday Homes Lease
Contracts; and
14.
the
internal rules that Guests must comply with.
b.
The DTCM
will coordinate with the concerned Government Entities for the purpose of
approving any contents of the Guide referred to in paragraph (a) of this
Article where such contents relate to matters falling within the jurisdiction
of these entities pursuant to the legislation in force in the Emirate.
c.
Upon
publication of the Guide on the official website of the DTCM, a Licensee must
comply with it and satisfy all the technical requirements and rules, and follow
the procedures, stipulated therein.
Real property developers, owners of jointly owned
real property, and real property management and leasing firms and service
providers must enable Licensees to conduct the Activity in accordance with the terms
of their Licences and Permits.
Any provision in any other administrative
resolution will be repealed to the extent that it contradicts this Resolution.
This Resolution will be published in the Official
Gazette and will come into force on the day on which it is published.
Helal Saeed Al Marri
Director
General
Department
of Tourism and Commerce Marketing
Issued in Dubai on 7 January 2020
Corresponding
to 12 Jumada al-Ula 1441 A.H.