Law No. (26) of 2007
Concerning regulating the relation Between Tenants and landlords
of property in Dubai Emirate
We Mohammad Bin Rashid Al-Maktoum,
Ruler of Dubai
After perusal of Federal Law No.
5 of 1985, regarding Civil
Transactions and its amendments,
And Federal Law No. 10 of 1992
Promulgating Law of Evidence in
Civil and Commercial Transactions,
And Decree No. 2 of 1993,
establishing the Special Judicial
Committee to settle Disputes between
landlords and tenants,
And Law No. 16 of 2007,
establishing the Real Estate
Regulatory Agency
Issue the following Law:
Name
Article (1)
This law shall be called the “Law
Regulating Relationship between
Landlords and Tenants in the Emirate of
Dubai No. 26 of 2007”.
DEFINITION –
SCOPE OF IMPLEMENTATION
Article (2)
In implementing provisions of this
law, the following words and terms shall
have the meaning assigned to them,
unless the text otherwise requires:
Emirate:
Emirate of Dubai
Agency
Real Estate Regulatory
Agency
Real Estate:
Immovable property and its
annexures rented for
residential, commercial or
professional purposes or any
other legal activity.
Tenancy Contract:
The contract by which
landlord is committed to enable
tenant to benefit from the
property for specified purpose
and period against specified
consideration.
Landlord:
Natural or Judicial person
who has, by law or consent, the
right of disposal of the
property and to whom the title
of the property is transferred
during tenancy period or to his
representative or legal
attorney, including the tenant
authorized by the landlord to
sublease the property.
Tenant
Natural or judicial person
who benefits from the property,
or part thereof, pursuant to a
tenancy contract and any person
who receives the tenancy legally
from the tenant.
Subtenant:
Natural or judicial person
who benefits from the property,
or part thereof, in accordance
with a tenancy contract signed
with the tenant.
Rent:
Specified consideration
which the tenant is bound to pay
according to the tenancy
contract.
Committee:
The Judicial Committee
authorised to settle deputes
between landlords and tenants.
Notification:
Written notification sent by
either of the tenancy contract
to the other party through
notary public, registered mail,
personal delivery or by any
technological means approved by
law.
Article
(3)
This law shall be
applicable to leased properties in the
Emirate including open and agricultural
lands, excluding hotels and free
accommodation provided by natural or
judicial persons to their employees.
Tenancy
Contract
Article
(4)
The tenancy relationship between
a landlord and tenant shall be
governed by a written tenancy
contract signed by them describing
the property in detail, the purpose
of the tenancy, name of landlord,
No. and type of land, name of the
area, period and rent value and
method of payment.
All properties subject to this
law, or its amendments, are to be
registered with the Agency. However,
judicial bodies and governmental
departments and authorities should
not consider any claim, case or
execution based on a tenancy
contract unless the same is
registered with the Agency in
accordance with rules and conditions
set for this purpose.
PERIOD OF
TENANCY
Article
(5)
The period of
tenancy must be specific, otherwise the
tenancy contract shall be deemed as
valid for the period specified for
payment of the rent value
Article
(6)
If the tenant
continues to occupy property after
expiry of the contract period without
any objection by the landlord, then the
contract shall be renewed for similar
period or for one year, whichever is
less, with the same terms and conditions
Article
(7)
If the tenancy
contract is due and valid, it cannot be
unilaterally terminated by the landlord
or the tenant, unless both parties agree
on such termination or in accordance
with the provisions of this law.
Article
(8)
A sublease
contract between a tenant and a
subtenant shall expire by expiry of the
tenancy contract between the landlord
and the tenant, unless the landlord
expressly agrees to an extension of the
sublease contract period.
RENT
VALUE
Article
(9)
Landlord and
tenant mush specify rent value in the
tenancy contract, and should not
increase such rent value or amend any of
tenancy contract conditions until the
elapse of two years from date of
inception of the original tenancy
relationship.
Article
(10)
The Agency shall
have the exclusive authority to specify
percentage of rent increase in the
Emirate, with regard to of economic
circumstances.
Article
(11)
Rent value
includes the enjoyment of property
utilities, like summing pools,
playgrounds, sports halls, health club,
car parking….etc. unless agreed
otherwise.
Article
(12)
Tenant shall pay
rent value on agreed dates. However, if
such agreement is absent or cannot be
proved, then rent value must be paid in
annual four equal instalments to be paid
in advance.
Article
(13)
Subject to article (9) herein
and for tenancy contract renewal
purposes, landlord and tenant may
review rent value and if no
agreement is reached and necessity
for extension of tenancy period is
proved, then the Committee shall
decide extension of tenancy period
and determine rent value according
to similar properties in the same
area.
2. The Committee shall decide
rent value of similar properties in
accordance with rules and standards
proposed by the Agency on the basis
of property condition and rent value
of similar property in the same
area.
Article
(14)
If either party
opts not to renew the tenancy contract
or wishes to amend any of its
conditions, then he must notify the same
to the other party not less than 90 days
prior to expiry date, unless both
parties agreed otherwise.
Landlord
Obligations
Article
(15)
Landlord shall be
committed to hand over the property in
good condition that enables tenant to
obtain the benefit subject of the
tenancy contract.
Article
(16)
Landlord shall,
during validity of the tenancy contract,
be liable for undertaking maintenance of
the property and shall rectify any
defects or faults that affect tenant’s
intended benefit from the property,
unless the two parties agree otherwise.
Article
(17)
Landlord shall not
make any change in the property, its
utilities or ancillaries affecting the
intended benefit, and landlord shall be
liable for such changes caused by him,
or by any person authorized by him, and
for any damages, faults or shortages
caused to the property for reasons not
relating to the tenant.
Article
(18)
Landlord must
provide tenant with all approvals
required by competent authorities in the
Emirate if he wishes to execute
decoration works, or other works, that
require such approvals, provided that
such works shall not affect the
construction of the property and
provided that tenant has necessary
documents evidencing applying for such
approvals.
OBLIGATIONS OF THE TENANT
Article
(19)
Tenant must pay
rent value on due dates and preserve the
property as his own property. He also
shall not make any changes, renovations
or maintenance works without landlord’s
permission, after obtaining necessary
approvals from competent authorities.
This shall not violate tenant’s
obligation to execute agreed upon
maintenance or that which is ordinarily
done by tenants.
Article
(20)
Landlord may
obtain a maintenance deposit amount from
tenants to guarantee maintenance of the
property at the expiry of tenancy
contract, provided that landlord shall
undertake to refund this deposit, or any
remaining amount, upon expiry of the
tenancy contract.
Article
(21)
Tenant shall be
obliged, upon expiry of tenancy, to
return the property to landlord in the
same condition as handed over to him at
the time of contracting except for
normal wear and tear or for reasons
beyond his control. However, in case of
any dispute, the matter shall be
referred to the Committee for decision.
Article
(22)
Unless the tenancy
contract otherwise provides, the tenant
shall pay all fees and taxes due to
government authorities for benefiting
from the property, in addition to any
other fees or taxes due for subleasing.
Article
(23)
The tenant shall
not, upon vacating the property, remove
any fixed improvements unless agreed
otherwise by both parties.
Article
(24)
Unless otherwise
agreed in the tenancy contract, the
tenant shall not assign the benefit or
sublease the property without obtaining
landlord’s approval.
EVICTION
Article
(25)
1. Landlord may demand eviction
of tenant prior to expiry of tenancy
period in the following cases
If tenant fails to
pay rent value, or part thereof,
within thirty (30) days of
landlord’s notification for
payment.
If tenant subleases
the property, or part thereof,
without landlord’s written
approval and in such case
eviction shall be applicable to
subtenant, and his right to
refer to tenant for compensation
shall be reserved.
If tenant uses, or
allows others to use, the
property for illegal or immoral
activities.
If tenant causes
changes that endanger safety of
the property in a way that it
cannot be restored to its
original condition or if he
causes damage to the property
intentionally or due to his
gross negligence to take proper
precautions or if he allows
others to cause such damage.
If tenant uses the
property for purposes other than
the purpose it was leased for or
if he uses the property in a way
that violates planning, building
and land using regulations.
If the property is
in danger of collapse, provided
that landlord must prove such
condition by a technical report
attested by Dubai Municipality.
If tenant fails to
observe legal obligations or
tenancy contract conditions
within (30) days from date of
notification by landlord to
abide by such obligations or
conditions.
Landlord may demand eviction of
tenant upon expiry of tenancy
contract in the following cases:
If development
requirements in the Emirate
requires demolition and
reconstruction of the property
in accordance with government
authorities instructions.
If the property
requires renovation or
comprehensive maintenance which
cannot be executed while tenant
is occupying the property,
provided that a technical report
attested by Dubai Municipality
is to be submitted to this
effect.
If landlord wishes
to demolish the property for
reconstruction or to add new
constructions that prevent
tenant from benefiting from the
leased property, provided that
necessary licences are obtained.
If landlord wishes
to recover the property for use
by him personally or by his next
of kin of first degree.
However, in all above mentioned four
cases, landlord must notify tenant with
reasons of eviction at least ninety (90)
days prior to expiry date of tenancy
contract.
Article
(26)
If, upon expiry of
the tenancy period, the landlord demands
recovery of the property for his own
use, or use by his first degree next of
kin, and the Committee approves the
same, then landlord shall not rent the
property to others before one year from
date of recovery of the property,
otherwise the tenant shall have the
right to request the Committee to order
proper compensation to him.
GENERAL
RULES
Article
(27)
If landlord or
tenant dies, the tenancy relationship
shall devolve to their heirs, unless
tenant’s heirs decide to terminate that
relationship, provided that termination
shall become effective after thirty (30)
days from notifying landlord of such
decision or on expiry of tenancy
contract, whichever occurs first.
Article
(28)
The transfer of
title to a new landlord shall not affect
tenant’s right to continue occupation of
the property in accordance with the
tenancy contract signed with the
previous owner, provided that the
tenancy contract has a fixed date.
Article
(29)
Tenant shall have priority to
return to the property if it is
demolished and reconstructed or if
it is renovated, provided that rent
value shall be fixed in accordance
with Article (13) herein.
2. Tenant shall benefit from the
above mentioned priority right
within thirty (30) days from being
notified by landlord.
Article
(30)
If the Committee
orders termination of tenancy contract
and the property is occupied by
subtenant, in accordance with a contract
signed with the tenant and approved by
landlord, then the subtenant shall have
the right to continue occupation of the
property with the same conditions.
Article
(31)
Filing an eviction
case shall not relieve tenant from
paying rent value for the whole period
of the case and until the issue of
judgement and execution thereof.
Article
(32)
If landlord and
tenant agree, in the tenancy contract or
subsequently, to refer any dispute to
arbitration, then neither of them shall
do anything that may affect the property
or the rights and obligations of both
parties as contained herein. However,
the Committee shall, upon request by
landlord or tenant, issue interlocutory
orders to protect such rights until the
issue of arbitration award.
FINAL
JUDGEMENTS
Article
(33)
In the event of a
dispute arising without the landlord and
tenant have agreed on arbitrators, or if
one or more of the agreed arbitrators
quits or is removed or becomes
incapable, and parties didn't agree in
this regard, then the Committee shall,
upon request by either party, appoint an
arbitrator or arbitrators equal or
complementary to the agreed number.
Article
(34)
Landlord is
prohibited from disconnecting services
to the property or preventing the tenant
from benefiting from the property.
However, in the event of occurrence of
such incidents, the tenant shall refer
to police station in the same area to
prove the case or to stop such
prevention, and also to file a case
before the Committee, enclosing
supporting reports, for compensation of
any damages.
Article
(35)
Eviction decisions
are to be executed through the Committee
in accordance with relative rules and
procedures. Other decisions taken by the
Committee shall be executed by Dubai
Courts Execution Section.
Article
(36)
The Agency shall
issue rules for implementation of this
law which are to be forwarded to the
Executive Council’s Chairman for
approval.
Article
(37)
This law is to be
published in the Gazette and shall be
effective sixty (60) days after date of
publishing.
