A new
rental law announced on Monday mandates that landlords in Sharjah must ratifySharjah Ruler Dr Sulthan bin Muhammed AL Qasimi
contracts within 15 days of issuance. The new law addresses the conditions
under which a landlord may evict a tenant from the leased property.
Additionally, it defines the circumstances in which both parties can mutually
agree to terminate their rental contract.
The law issued by Sheikh Dr.
Sultan bin Muhammad Al Qasimi, Ruler of Sharjah and Member of the Supreme
Council, specifies the conditions for eviction as follows:
- Eviction Restrictions:
- Landlords cannot request tenants to
vacate the leased property before the expiry of 3 years for residential
use and 5 years for commercial, industrial, or professional use.
Previously, landlords could ask tenants to vacate the property with a
three-month eviction notice after getting permission from Sharjah
Municipality.
The new
lease law applies unless one of the following reasons is available:
A. If the tenant does not pay
the rent or any instalment thereof within 15 days from the due date.
B. The tenant’s violation of
any of his legal or contractual obligations and failure to remove the violation
within 30 days from the date of notification by the landlord.
C. If the tenant assigns all
or part of the lease contract or re-rents all or part of the leased property in
violation of the provisions of this law and its executive regulations, without
prejudice to the provisions of the transfer of ownership of the commercial
premises stipulated by law.
D. If the tenant uses the
rented property or allows others to use it for a purpose other than that
specified in the lease contract or in violation of its terms or uses it for
purposes that conflict with public order or public morals.
E. If the landlord wishes to
demolish the rented property, rebuild it, or carry out comprehensive
maintenance that makes it impossible for the tenant to be present in the
property, in accordance with the conditions specified in the executive
regulations of this law.
Meanwhile, if the landlord
wishes to occupy the rented property for the purpose of residence for himself
or one of his first-degree adult relatives, provided that the following occurs:
A. He shall not own another
property suitable for housing within the municipality’s jurisdiction.
B. Notifying the tenant of the
eviction request within a period of not less than three months from the date
set for the eviction.
C. That the landlord himself
or one of his first-degree adult relatives actually occupy the leased property
within two months after it has been vacated by the tenant and for a period of
one year without interruption.
2. If the landlord does not
comply with the conditions outlined in paragraph E of this article, the tenant
shall have the right to claim compensation for the damage he suffered as a
result of the eviction before the centre.
The law states that if the
landlord refuses to accept the rent payments or does not specify a location for
payment, the tenant can deposit the rent or instalment with the designated
centre, as long as he/she follows the guidelines in the law's executive regulations.
In case the landlord or tenant hasn't agreed on the method or date of
payment, or if proving such an agreement is difficult, rent will be paid in
four equal instalments spread throughout the lease term.
Termination of Contract
The new law also defines the
termination of the rental relationship as follows:
- Transfer of Ownership:
The rental relationship does not end, and the tenant is not harmed by the
transfer of ownership of the leased property to a new owner, regardless of
the method or reason for its transfer. The new landlord cannot request the
tenant to vacate the property or increase the rent except under the provisions of this law and its executive regulations. The new
lessor replaces the previous lessor in all rights and obligations of the
lease contract.
- Death of a Party:
The rental agreement does not automatically end if one of the parties
dies, except when the tenant dies and their heirs request to terminate the
contract. In such cases, the contract can only be terminated 30 days after
the landlord is notified or when the contract naturally expires, whichever
comes first.
- Early Termination by Tenant:
For fixed-term rental contracts, a tenant may request early termination if
they can prove that unexpected or exceptional circumstances have made it
difficult to fulfil their obligations. If the landlord refuses this
request, the tenant can take the matter to the relevant authority, which
will then evaluate the situation. If the contract is terminated early, the
tenant must pay the landlord at least 30% of the rent for the remaining
contract term, unless both parties agree to a different arrangement.
Rent Increase
- Initial Period:
Landlords cannot increase the rent until three years have passed from the
start of the rental agreement unless both parties mutually agree to a
change. If a tenant accepts a rent increase within those three years, the
landlord cannot raise the rent again for another two years.
- Fair Rent Value:
After the initial period, any rent increase must reflect the fair rent
value, as determined by the law’s executive regulations, outlining how to calculate this fair rent. The governing council may also amend
these time frames through a formal decision.
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