Key
Eviction Restrictions and Provisions:
Under
the new law, landlords are now largely restricted from requesting tenants to
vacate their leased property before the expiry of three years for
residential use and five years for commercial, industrial, or
professional use. This marks a substantial shift from previous regulations,
which allowed landlords to issue a three-month eviction notice after obtaining
permission from Sharjah Municipality.
However,
the new lease law permits eviction under specific circumstances:
Non-Payment
of Rent: If the tenant fails to pay rent
or any installment within 15 days of the due date.
Contractual
Violations: If the tenant
violates any legal or contractual obligations and fails to rectify the
violation within 30 days of notification by the landlord.
Unauthorized
Subleasing: If the tenant assigns
or re-rents all or part of the property in violation of the law, excluding
legally stipulated transfers of commercial premises.
Improper
Use of Property: If the tenant uses or
allows others to use the property for a purpose other than that specified in
the contract, in violation of its terms, or for purposes conflicting with
public order or morals.
Property
Demolition/Reconstruction: If the landlord
intends to demolish, rebuild, or carry out comprehensive maintenance that
renders the property uninhabitable, as per the executive regulations.
Landlord's
Own Use of Property:
A
landlord wishing to occupy the rented property for themselves or a first-degree
adult relative must adhere to strict conditions:
The
landlord must not own another suitable residential property within the
municipality’s jurisdiction.
The
tenant must be notified of the eviction request at least three months prior to
the eviction date.
The
landlord or their first-degree adult relative must genuinely occupy the
property within two months of it being vacated and for a continuous period of
one year.
Failure
by the landlord to comply with these conditions entitles the tenant to claim
compensation for damages incurred due to the eviction.
Rent
Payment and Disputes:
The
law also clarifies rent payment procedures. If a landlord refuses rent payments
or doesn't specify a payment location, tenants can deposit the rent or
installment with the designated center, following the law's executive
regulations. In the absence of an agreed payment method or date, rent will be
paid in four equal installments throughout the lease term.
Contract
Termination Provisions:
The
new law outlines clear guidelines for the termination of rental relationships:
Transfer
of Ownership: The rental
relationship remains valid even if the property changes ownership. The new
landlord assumes all rights and obligations of the previous lessor and cannot
request the tenant to vacate or increase rent except as per this law.
Death
of a Party: The rental agreement
does not automatically terminate upon the death of a party, except if the
tenant dies and their heirs request termination. In such cases, the contract
ends 30 days after landlord notification or at natural expiry, whichever comes
first.
Early
Termination by Tenant: For fixed-term
contracts, tenants can request early termination due to unexpected or
exceptional circumstances making fulfillment difficult. If the landlord
refuses, the tenant can approach the relevant authority for evaluation. If
approved, the tenant must pay at least 30% of the remaining rent, unless
otherwise agreed.
Rent
Increase Regulations:
Initial
Period: Landlords cannot increase rent
until three years have passed from the start of the rental agreement, unless
both parties mutually agree. If a tenant accepts an increase within these three
years, the landlord cannot raise the rent again for another two years.
Fair
Rent Value: After this initial
period, any rent increase must align with the fair rent value, as determined by
the law’s executive regulations. The governing council also retains the power
to amend these time frames through formal decisions.
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