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In Dubai, the relationship between landlords and tenants is governed by Law No. (26) of 2007. This law, issued by Sheikh Mohammed bin Rashid Al Maktoum, covers various aspects of leasing residential and commercial properties within the Emirate. Let’s delve into its key provisions and implications, especially focusing on tenant rights in Dubai.
Key Definitions and Scope
The law defines crucial terms such as “Landlord,” “Tenant,” “Real Property,” and “Lease Contract,” establishing clarity on rights and responsibilities. It applies to all leased properties in Dubai, excluding certain categories like hotel units and accommodations provided free to employees.
Real Property: Includes immovable property leased for residential or commercial purposes.
Landlord: The legal owner or authorized agent who leases out the property.
Tenant: The individual or entity renting the property from the landlord.
Lease Contract: A written agreement detailing terms like rent amount, lease duration, and property description.
Lease Contracts
All lease agreements must be in writing and registered with the Real Estate Regulatory Agency (RERA). This requirement ensures legal validity and protects both parties’ interests.
According to Article 4 of the law:
- Lease contracts must be written and signed by both parties.
- They should clearly specify the property details, purpose of lease, rent amount, payment method, and other relevant terms.
- All lease contracts must be registered with the Real Estate Regulatory Agency (RERA) to be legally recognized.
Rent Regulations
Rent agreements are central to the law, with provisions restricting rent increases to once every two years. RERA determines permissible increases based on market conditions, ensuring fairness and stability in rental prices. Tenants are entitled to use property facilities unless stated otherwise in the contract.
Article 9 addresses rent specifics:
- Rent amounts must be specified in the lease contract.
- Rent cannot be increased or terms amended within the first two years, except under specific conditions.
- RERA sets guidelines for permissible rent increases based on market conditions.
Tenant and Landlord Obligations
Both parties have clear responsibilities:
Landlord: Responsible for maintaining the property and ensuring it is fit for use. Must provide necessary approvals for tenant modifications that comply with regulations.
Tenant: Obligated to pay rent on time, maintain the property, and seek landlord approval for any alterations, under tenant rights in Dubai.
Strengthened Tenant Protections
One of the notable amendments is found in Article 26. This article stipulates that if a landlord retakes possession of a property for personal use, they are prohibited from renting it out to a third party for at least one year. This measure is designed to prevent landlords from falsely claiming personal use to evict tenants only to re-rent the property at a higher price. Should the landlord violate this provision, tenants are entitled to seek compensation, reinforcing the protection of their rights.
Advance Notice for Major Works
Article 29 introduces another significant tenant protection. Landlords must provide tenants with a 90-day notice before the lease’s expiry if there are intentions to
- demolish,
- reconstruct,
- undertake comprehensive maintenance of the property.
This advance notice period allows tenants ample time to make alternative living arrangements. Furthermore, tenants have the right to return to the property once such works are completed, ensuring they are not permanently displaced without adequate cause.
Eviction Criteria
The law outlines specific grounds for eviction, such as non-payment of rent, illegal use of property, or significant damage caused by the tenant. Eviction can also occur if the landlord intends to demolish, renovate, or occupy the property personally, provided proper notice is given.
Dispute Resolution and Amendments
Disputes between landlords and tenants are adjudicated by a specialized tribunal. The law allows for arbitration if both parties agree, ensuring efficient resolution of conflicts. Amendments to lease terms or rent require mutual consent, with mechanisms in place to determine fair rental values in case of disagreement.
Conclusion:
Law No. (26) of 2007 serves as a cornerstone in regulating the landlord-tenant relationship in Dubai, promoting transparency and fairness. For anyone leasing property in Dubai, understanding these legal provisions and tenant rights in Dubai is essential, so reach out to Dubai lawyers or top law firms in Dubai who specialize in real estate laws.