Looking to rent property? Here’s everything you need to know about RERA laws

Looking to rent property? Here’s everything you need to know about RERA laws
Web Report/Dubai Khaleej times
Filed on January 18, 2018 | Last updated on January 18, 2018, at 08.01 am

Looking to rent property? Here's everything you need to know about RERA laws

A look at the important aspects of the law before you rent a property in Dubai.

If you are looking to rent a property in Dubai then equipping yourself with the property laws of the emirate should be on priority.

Aiming to regulate the relationship and minimise disputes between a landlord and a tenant, the Real Estate Regulatory Agency (RERA) has definitive laws and specifications that outlines their roles and responsibilities.

Let’s take a look at the important aspects of the law before you rent a property in Dubai:

10 tips to remember before signing on the dotted line

1. Ensure that your real estate agent is Rera registered. They should be able to provide you with their broker number.

2. Write your cheques directly to the landlord. Before handing them over, ask for a copy of your landlord’s passport and if possible the title deeds too.

3. Ask your agent to check that all service charges have been paid by the landlord, and if possible get it in writing too.

4. Ask your agent to check that there are no outstanding bills for Dewa or the chiller (air conditioning). If there are, they will need to be paid before you can set up an account.

5. If there are maintenance issues that need to be resolved before you move in, ensure that they are taken care of.

6. Be aware of how many car parking spaces you have. It is not uncommon for there to be only one to share between a husband and wife. Also find out if there is visitors parking too, and how to access it.

7. Know how to access all parts of the building. Often, swipe cards and door keys are needed to enter your property.

8. If the property is not clean before you move in, ask for it to be cleaned in advance of you moving in. A property should be handed over in a habitable condition.

9. Take photos of any issues you find with the apartment and let your agent and landlord know. This will avoid issues when you try and prove they were there before.

10. Once you have your tenancy contract, sign up for Ejari.

Regulating the relationship between landlords and tenants in Dubai
Article 1

This law will be cited as “Law No. (26) of 2007 regulating the relationship between landlords and tenants in the emirate of Dubai “. Law No. (33) of 2008 ammendents supersede Law No. (26) of 2007.

Definitions and scope of application

Article (2)

In implementing the provisions of this law, relevant words and expressions along with their description have been mentioned below.

Emirate: The Emirate of Dubai.

Tribunal: The Special Tribunal for the Settlement of Disputes between Landlords and Tenants.

RERA: The Real Estate Regulatory Agency.

Real Property: Immovable property and everything affixed or annexed to it, and which is leased out for purposes of accommodation or conducting a business activity, trade, profession, or any other lawful activity.

Tenancy Contract: A contract by virtue of which the Landlord is bound to allow the tenant use of the real property for a specific purpose, over a specific term, and in return for a specific consideration.

Landlord: A natural or legal person who is entitled by law or agreement to dispose of real property. This also includes a person to whom ownership of the real property is transferred during the term of a tenancy contract, an agent or legal representative of the landlord, or a tenant who is permitted by the landlord to sub-let the real property.

Tenant: A natural or legal person who is entitled use of the real property by virtue of a tenancy contract, or any person to whom the tenancy is legally transferred from the tenant.

Sub-tenant: A natural or legal person who is entitled use of the real property or any part thereof by virtue of a tenancy contract entered into with the tenant.

Rent: The specified consideration which the tenant must be bound to pay by virtue of the tenancy contract.

Notice: A written notification sent by either party to the lease contract to the other through the Notary Public, or delivered by registered post, by hand, or by any other technological means approved by law

Article (3)

The provisions of this law will apply to lands and real property leased out in the emirate excluding real property provided free of rent by natural or legal persons to accommodate their employees.

Term of tenancy contract

Article 4 – Amended; Law 33 of 2008

1. The contractual relationship between landlord and tenant will be regulated by a tenancy contract detailing, in a manner allowing no room for uncertainty, a description of the leased Real Property, the purpose of the tenancy, the term of the tenancy contract, the rent and payment method, and the name of the owner of the real property, if the landlord is not the owner.

2. All tenancy contracts or any amendments to such tenancy contracts related to real property which are subject to the provisions of this law will be registered with RERA.

Article 5

The term of a tenancy contract must be specified. Where the term is not specified in the tenancy contract or where it is impossible to prove the alleged term, the tenancy contract will be deemed valid for the period specified for payment of the rent.

Article 6

Where the term of a tenancy contract expires, but the tenant continues to occupy the real property without any objection by the landlord, the tenancy contract will be renewed for the same term or for a term of one year, whichever is shorter, and under the same terms as the previous tenancy contract.

Article 7

Where a tenancy contract is valid, it may not be unilaterally terminated during its term by the landlord or the tenant. It can only be terminated by mutual consent or in accordance with the provisions of this Law.

Article 8

The term of a sub-tenancy contract entered into between the tenant and sub-tenant will expire upon the expiry of the term of the tenancy contract entered into between the landlord and tenant, unless the landlord expressly agrees to extend the term of the sub-tenancy contract.

The rent
Article (9) Amended; Law 33 of 2008

1. The landlord and the tenant must specify the rent in the tenancy contract. Should the parties omit or fail to specify the agreed rent, then the rent must be the same as that of similar real property.

2. The Tribunal will determine the rent of similar real property taking into account the criteria determining the percentage of rent increase set by RERA, the overall economic situation in the Emirate, the condition of the real property, and the average rent of similar real property in similar real property markets within the same area and in accordance with any applicable legislation in the Emirate concerning real property rent, or any other factors which the Tribunal deems appropriate.

Article 10

RERA will have the authority to establish criteria relating to percentages of rent increase in the Emirate in line with the requirements of the prevailing economic situation in the Emirate.

Article 11

Unless otherwise agreed, the rent will cover use of the real property amenities such as swimming pools, playgrounds, gymnasiums, health clubs, car parks, and other amenities.

Article 12

The tenant will pay the landlord the rent on the dates mutually agreed upon. Where there is no agreement or where it is impossible to verify the payment dates, the Rent must be annually paid in four (4) equal instalments to be paid in advance.

Article (13)

For the purposes of renewing the tenancy contract, the landlord and the tenant may, prior to the expiry of the tenancy contract, amend any of the terms of the tenancy contract or review the Rent, whether increasing or decreasing it. Should the landlord and tenant fail to reach an agreement, then the Tribunal may determine the fair Rent, taking into account the criteria stipulated in Article (9) of this Law.

Three months notice a must
Article (14)

Unless otherwise agreed by the parties, if either party to the Tenancy Contract wishes to amend any of its terms in accordance with Article (13) of this Law, that party must notify the other party of same no less than ninety (90) days prior to the date on which the Tenancy Contract expires.

Landlord’s obligations
Article (15)

The Landlord will be bound to hand over the real property in good condition, which allows the Tenant full use as stated in the tenancy contract. However, the parties may agree upon renting an unfinished real property provided that the tenant agrees to complete the construction of the real property in a manner to render it suitable for use as intended. The identity of the party who will incur the costs of completing the construction will be determined in the Tenancy Contract.

Landlord is responsible for maintenance
Article 16

Unless otherwise agreed by the parties, the Landlord will, during the term of the Tenancy Contract, be responsible for the Real Property’ maintenance works and for repairing any defect or damage that may affect the Tenant’s intended use of the Real Property.

Article 17

The Landlord may not make to the Real Property or any of its amenities or annexes any changes that would preclude the Tenant from full use of the Real Property as intended. The Landlord will be responsible for such changes whether made by him or any other person authorised by the Landlord. Further, the Landlord will be responsible for any defect, damage, deficiency, and wear and tear occurring to the Real Property for reasons not attributable to the fault of the Tenant.

Article 18

The Landlord must provide the Tenant with the approvals required to be submitted to the competent official entities in the Emirate whenever the Tenant wishes to carry out decoration works or any other works that require such approvals, provided that such works do not affect the structure of the Real Property and that the Tenant has the official documents requesting such approvals.

Tenant’s Obligations
Article 19

The Tenant must pay the Rent on due dates and maintain the Real Property in such a manner as an ordinary person would maintain his own property. Without prejudice to the Tenant’s obligation to carry out the restorations that have been agreed upon or which are customary for Tenants to undertake, the Tenant may not make any changes or carry out any restoration or maintenance works to the Real Property unless so permitted by the Landlord and after obtaining required licences from the competent official entities.

Article 20

When entering into a Tenancy Contract, the Landlord may obtain from the Tenant a security deposit to ensure maintenance of the Real Property upon the expiry of the Tenancy Contract, provided that the Landlord undertakes to refund such deposit or remainder thereof to the Tenant upon the expiry of the Tenancy Contract.

Article 21

What to do if your deposit stuck with your landlord?
Upon the expiry of the term of the Tenancy Contract, the Tenant must surrender possession of the Real Property to the Landlord in the same condition in which the Tenant received it at the time of entering into the Tenancy Contract except for ordinary wear and tear or for damage due to reasons beyond the Tenant’s control. In the event of dispute between the two parties, the matter must be referred to the Tribunal to issue an award in this regard.

Article 22

Unless the Tenancy Contract states otherwise, the Tenant must pay all fees and taxes due to Government entities and departments for use of the Real Property as well as any fees or taxes prescribed for any sub-lease.

Article 23

Unless otherwise agreed by the parties, upon vacating and surrendering possession of the Real Property, the Tenant may not remove any leasehold improvements made by the Tenant.

Article 24

Unless otherwise agreed by the parties to the Tenancy Contract, the Tenant may not assign the use of or sub-lease the Real Property to third parties unless written consent of the Landlord is obtained.

Eviction cases
Article (25)

1.Before the expiry of the Tenancy Contract:
Under Article 25, the landlord has the right to evict the tenant from the Real Property prior to the expiry of the term of the Tenancy only in the following cases:

where the Tenant fails to pay the Rent or any part thereof within thirty (30) days after the date a Notice to pay is given to the Tenant by the Landlord unless otherwise agreed by the parties;

a. where the Tenant sub-lets the Real Property or any part thereof without obtaining the Landlord’s approval in writing. In this case, the eviction will apply to both the Tenant and Sub-Tenant. However, the Sub-Tenant’s right to claim a compensation from the Tenant will be preserved;

b. where the Tenant uses the Real Property or allows others to use it for any illegal purpose or for a purpose which breaches public order or morals;

c. where the Tenant of commercial Real Property leaves the Real Property unoccupied for no valid reason for thirty (30) consecutive days or ninety (90) non-consecutive days within the same year, unless agreed otherwise by both parties;

d. where the Tenant makes a change to the Real Property that renders it unsafe in a manner that makes it impossible to restore the Real Property to its original state, or damages the Real Property willfully or through gross negligence, by failing to exercise due diligence, or by allowing others to cause such damage;

e. where the Tenant uses the Real Property for a purpose other than that for which the Real Property was leased, or uses the Real Property in a manner that violates planning, construction, and use-of-land regulations in force in the Emirate;

f. where the Real Property is condemned, provided that the Landlord must prove this by a technical report issued by or attested to by Dubai Municipality;

g. where the Tenant fails to observe any obligation imposed on him by this Law or any of the terms of the Tenancy Contract within thirty (30) days from the date a Notice to perform such obligation or term is served upon him by the Landlord; or

h. where competent Government entities requires demolition or reconstruction of the Real Property as per urban development requirements in the Emirate.

For the purposes of paragraph (1) of this Article, the Landlord will give Notice to the Tenant through a Notary Public or registered post.

2. Upon expiry of the tenancy contract:

Upon expiry of the Tenancy Contract the Landlord may request eviction of the Tenant from the Real Property only in any of the following cases:

a. where the owner of the Real Property wishes to demolish the Real Property to reconstruct it, or to add any new constructions that will prevent the Tenant from using the Real Property, provided that the required permits are obtained from the competent entities;

b. where the Real Property is in a condition that requires restoration or comprehensive maintenance that cannot be carried out in the presence of the Tenant in the Real Property, provided that the condition of the Real Property is verified by a technical report issued by or attested to by Dubai Municipality;

c. where the owner of the Real Property wishes to take possession of it for his personal use or for use by any of his first-degree relatives, provided that the owner proves that he does not own another Real Property appropriate for such purpose; or

d. where the owner of the Real Property wishes to sell the leased Real Property.

For the purposes of paragraph (2) of this Article, the Landlord must notify the Tenant of the eviction reasons twelve (12) months prior to the date set for eviction, provided that this notice is given through a Notary Public or registered post.

Article 26 – Amended; Law 33 of 2008

If the Tribunal awards the Landlord possession of the Real Property for his personal use or for use by any of his first-degree relatives in accordance with sub-paragraph (c) of paragraph (2) of Article (25) of this Law, the Landlord may not rent the Real Property to a third party before the lapse of at least two (2) years from the date of possession of the Real Property by the Landlord in case of residential Real Property and three (3) years in case of non-residential Real Property, unless the Tribunal, in its discretion, sets a shorter period. Otherwise, the Tenant may request the Tribunal to award him a fair compensation.

General Provisions
Article 27

The Tenancy Contract does not expire upon the death of the Landlord or the Tenant. The contractual relationship continues with the heirs, unless the heirs of the Tenant wish to terminate such relationship, provided that termination comes into effect no less than thirty (30) days from the date of notifying the Landlord of such intent or the expiry date of the Tenancy Contract, whichever comes first.

What happens when your rented property gets a new owner?
Article 28

Transferring the ownership of Real Property to a new owner does not affect the Tenant’s right to continue to occupy the Real Property by virtue of the Tenancy Contract entered into with the previous owner, provided that such Tenancy Contract has a fixed term.

Article 29 – Amended; Law 33 of 2008

Right of first refusal in real estate
1. The Tenant has the right of first refusal to rent the Real Property after it has been demolished and reconstructed or renovated and refurbished by the Landlord, provided that the Rent is determined in accordance with the provisions of Article (9) of this Law.

2. The Tenant must exercise the right of first refusal referred to in the preceding paragraph within a period not exceeding thirty (30) days from the date the Tenant is notified by the Landlord.

Sub-Tenant services
Article 30

If the Tribunal issues an award terminating the Tenancy Contract and the Real Property is occupied by a Sub-tenant under a contract entered into with the Tenant and approved by the Landlord, the Sub-tenant may continue to occupy the Real Property under the terms of the sub-Tenancy Contract.

Article 31

Filing a claim to evict the Tenant does not exempt the Tenant from paying the Rent for the whole period during which the claim is considered, and until an award is rendered and executed.

Article 32

If the Landlord and Tenant agree in the Tenancy Contract or in any other subsequent agreement to refer any dispute arising between them out of the Tenancy Contract performance to arbitration, neither party may take any action that would affect the Real Property or the parties’ rights and obligations as set out in the Tenancy Contract. The Tribunal may, upon the request of the Landlord or the Tenant, issue any interim awards it deems appropriate to preserve such rights and legal position until the arbitration award is rendered.

Dispute resolutions
Article 33 – Renting out an apartment

Where a dispute arises and the Landlord and Tenant have not agreed on the arbitrators or if one or more of the agreed on arbitrators refrains from doing the work, resigns, is removed, or disqualified, or if an issue arises preventing the arbitrator from doing his work, and there was no agreement between the parties in this regard, the Tribunal, upon the request of either party, will appoint the arbitrator(s). The number of arbitrators appointed by the Tribunal must be equal to or complete the number of arbitrators agreed on.

Article 34- Disconnecting service is illegal

The Landlord may not disconnect services from the Real Property or disturb the Tenant in his use of the Real Property in any manner. If this happens, the Tenant may have recourse to the police station under whose jurisdiction the Real Property falls to seek a remedy for the violation or to file a police report regarding the violation. He also may have recourse to the Tribunal by filing a claim for damages for any loss he may have suffered, supported by official reports that support the existence of such violation.

Aticle 35

The awards relating to vacating the Real Property will be executed through the Tribunal and pursuant to the rules and procedures issued in this respect. Apart from such awards, other awards issued by the Tribunal will be executed by the Execution Section of Dubai Courts.

Article 36 – Amended; Law 33 of 2008

The Chairman of the Executive Council will issue the regulations, bylaws, and resolutions required for the implementation of the provisions of this Law. Article (2) This Law will be published in the Official Gazette and will come into force on the day on which it is published.

Article 37

This Law will be published in the Official Gazette and will come into force after sixty (60) days from the date of publication.

Call centre 6005 55556
Source Dubai Land Department
Locate RERA

Unified lease agreement

To establish transparency and clarity for the benefit of all parties in the real estate market, the Dubai Land Department (DLD), announced the launch of the unified lease in March 2017 with the aim of establishing greater transparency and credibility in the real estate market. The unified lease agreement was implemented to contribute to the completion of the legal system and the consolidation of the rights and duties of contracting parties.

Legal reference

Law (2) 2003 is one of the references on which the unified lease agreement was based. The lease agreement was also based on Law (33) 2008 regulating the relationship between landlords and tenants in Dubai, specifically Article 25 that outlines scenarios in which the landlord can request the eviction of the property (including the sublease), allow others to use the property and use the property for purposes other than stated in the licence.

In accordance with Law (26) for the year 2007, specifically Article (16), during the term of the lease, the landlord shall be responsible for the maintenance of the property and for the repair of any malfunction that affects the tenant’s satisfaction of the intended benefit, unless otherwise agreed. The law obliges the landlord to bear this responsibility in all cases, but does allow for the liability to be transferred to the tenant if there is a consensual agreement. This prevents the establishment of a binding clause and ensures tenants and landlords are in agreement.

Easy operation

DLD encourages landlords to download and print contracts from the Ejari official website (www.ejari.ae), and provides assurance that all items included within such contracts are based upon a legal framework that regulates relationships and transactions. It is the responsibility of the parties to the contract to agree on items that meet their requirements and needs when signing the unified lease for the first time.

Three reasons qualify or give the right to the landlord/property owner to evict a tenant:

1. Breach of tenancy agreement or violation of a law

2. Landlord wants to sell the property

3. Landlord wants to self-occupy the property

10 tips to remember before signing on the dotted line

https://www.khaleejtimes.com/business/real-estate/know-your-rental-rights

1. Ensure that your real estate agent is Rera registered. They should be able to provide you with their broker number.

2. Write your cheques directly to the landlord. Before handing them over, ask for a copy of your landlord’s passport and if possible the title deeds too.

3. Ask your agent to check that all service charges have been paid by the landlord, and if possible get it in writing too.

4. Ask your agent to check that there are no outstanding bills for Dewa or the chiller (air conditioning). If there are, they will need to be paid before you can set up an account.

5. If there are maintenance issues that need to be resolved before you move in, ensure that they are taken care of.

6. Be aware of how many car parking spaces you have. It is not uncommon for there to be only one to share between a husband and wife. Also find out if there is visitors parking too, and how to access it.

7. Know how to access all parts of the building. Often, swipe cards and door keys are needed to enter your property.

8. If the property is not clean before you move in, ask for it to be cleaned in advance of you moving in. A property should be handed over in a habitable condition.

9. Take photos of any issues you find with the apartment and let your agent and landlord know. This will avoid issues when you try and prove they were there before.

10. Once you have your tenancy contract, sign up for Ejari.

Posted on January 18, 2018 in Property, Real Estate

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