Sheikh Sultan issues law on property leasing in Sharjah

His Highness Dr Sheikh Sultan Bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, has issued Law No. (5) of 2024 on Property Leasing in the Emirate of Sharjah.

The provisions of this law apply to properties leased for residential, commercial, industrial, or professional purposes in the Emirate of Sharjah. The following are exempt from the application of this law:

1- Agricultural land.

2- Properties granted by the emirate's government for residential purposes unless they are owned.

3- Properties provided by an employer for the housing of their employees without charging rent; this exemption does not apply to the leasing relationship that arises between the employer and the property lessor.

4- Properties belonging to hotel or tourism establishments leased solely to their guests.

5- Properties located within the free zones of the emirate, which have special committees or judicial bodies responsible for resolving rental disputes that arise within their boundaries.

6- Properties and contracts designated by a decision from Sharjah Executive Council.

7- According to the law, the parties to the rental relationship are required to conclude a lease agreement in writing or electronically, using the approved forms issued by the Executive Council of the Emirate of Sharjah. The executive regulations of this law will specify the data and conditions that must be included in this contract .

The law stipulates the certification of lease contracts as follows:

1- The landlord is required to certify the lease contract or any renewal of its duration and to pay the applicable fees to the municipality or the authorized entities within 15 days from the date of its drafting.

2- If the landlord refuses to certify the lease contract within the timeframe specified in paragraph 1 of this article, the tenant must request that the emergency judge at the center compel the landlord to certify it.

3- In the event that the lease contract is not certified by the municipality or the authorized entities, an administrative fine will be imposed on the landlord, as determined by the executive regulations of this law, in addition to the applicable certification fees.

4- The municipality may request that the emergency judge at the center compel the landlord to certify the lease contract and pay the fees and fines due at any time.

5- Except for the center, government entities in the emirate shall refuse to accept any unverified lease contract in accordance with the provisions of this law and its executive regulations in any transaction or service they provide.

According to the law, either party in the rental relationship, in the absence of a certified lease contract, may file a claim with the Rental Disputes Center in the Emirate of Sharjah to establish the rental relationship and its resulting effects using all forms of evidence provided for in the applicable legislation. The landlord will be required to pay the certification fees for the lease contract after its establishment.

The law specifies the obligations of the landlord, which include:

1- Delivering the leased property and its appurtenances to the tenant in a condition suitable for the intended use, without any hindrance to its enjoyment throughout the lease term, as agreed upon.

2- Carrying out necessary maintenance on the leased property unless otherwise agreed by the parties to the lease contract.

3- Not making changes to the leased property that would prevent or diminish its enjoyment without written permission from the tenant.

4- Granting the tenant the necessary approvals to present to the relevant authorities in the emirate if they wish to carry out interior design work in the leased property that aligns with its designated purpose or any other work that requires such approvals, provided that these works do not affect the structural integrity of the leased property or the building in which it is located.

5- Not interfering personally or through others with the tenant in a manner intended to disturb them or pressure them to vacate the leased property, or depriving them of full enjoyment of its appurtenances, or cutting off or disconnecting services to it or to the property in which it is located.

6- Returning any financial guarantees previously provided by the tenant upon the termination of the rental relationship unless they have been wholly or partially deducted for damages caused by the tenant to the leased property that do not fall under normal use.

Without prejudice to the tenant's right to request termination or a reduction in rent proportional to the decrease in enjoyment, the tenant may resort to the emergency judge at the center to compel the landlord in the event of a breach of any of the obligations stipulated in Article (8) of this law after notifying the landlord or if contact cannot be established. If the landlord fails to carry out the necessary maintenance, the tenant may conduct this maintenance at their own expense, with the right to claim a deduction for the costs incurred for the essential maintenance from the rent.

The law specifies the obligations of the tenant as follows:

1- Paying the rent on the due dates or as agreed upon in writing.

2- Using the leased property as agreed in the lease contract.

3- Not making any changes or modifications to the leased property without obtaining written permission from the landlord and the necessary licenses from the relevant authorities.

4- Leaving any plantings, constructions, or improvements made to the leased property after the lease term ends, which would cause damage if removed, unless otherwise agreed by the parties to the lease contract.

5- Maintaining the leased property and conducting regular maintenance unless otherwise agreed by the parties to the lease contract, and allowing the landlord to carry out necessary maintenance as required.

6- Paying for the consumption of services and any damages caused to the leased property, as well as any other fees legally required to be paid, from the date of receiving the leased property until the date of handing it back to the landlord. In no case may the landlord be charged any fees or expenses of any kind or to any party that the tenant is obligated to pay unless otherwise agreed by the parties to the lease contract.

Without prejudice to the landlord's right to request termination or compensation for damages incurred to the leased property by the tenant as a result of modifications or changes that cannot be removed or restored to their previous condition, the landlord may resort to the emergency judge at the center to compel the tenant in the event of a breach of any of the obligations stipulated in Article (10) of this law after notifying the tenant or if contact cannot be established.

The law stipulates that the tenant may not waive, with or without consideration, all or part of the lease contract and the rights arising therefrom, and the tenant may re-lease all or part of the leased property in accordance with the terms and conditions specified in the executive regulations of the present law.

The law addresses the reasons for eviction as follows:

1. The landlord may not request the tenant to vacate the leased property before the expiry of (3) years from the date of commencement of the lease relationship for residential use and (5) years for commercial, industrial or professional use, unless one of the following reasons arise:

A. If the tenant fails to pay the rent or any instalment thereof within (15) days from the date it is due.

B. The tenant violates any of his legal or contractual obligations and does not 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 the present 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 leased 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 leased property or rebuild it or carry out comprehensive maintenance that prevents the tenant from being present in the property in accordance with the conditions specified in the executive regulations of this law.

F. If the landlord wishes to occupy the leased property for the purpose of housing for himself or one of his first-degree adult relatives, provided that:

A. He does not own another property suitable for housing in the area of the municipality's jurisdiction.

B. Notify the tenant of the eviction request within a period of not less than three months from the date set for eviction.

C. The landlord himself or one of his first-degree adult relatives shall occupy the leased property within two months after it has been vacated by the tenant for a period of one year without interruption.

2. If the landlord does not comply with the conditions set forth in clauses (e) and (f) of this article, the tenant shall have the right to claim compensation for the damages incurred by the eviction before the centre.

The law stipulates that if the landlord refuses to receive the rent or any instalment thereof or does not designate a place where payment will take place, the tenant may deposit the agreed-upon rent or instalment with the centre in accordance with the controls specified in the executive regulations of this law. If the landlord and the tenant do not agree on the method and date of payment of the rent or it is impossible to prove the agreement, the payment method shall be in four equal instalments divided over the term of the lease contract.

According to the law, the lessor may not increase the agreed upon rent before the expiry of (3) years from the date of the start of the rental relationship, unless the parties to the rental contract agree otherwise. If the lessee accepts an increase in the rent before the expiry of the three years, the lessor may not increase it again until two years have passed from the date of the increase. The increase in the rent after the expiry of the periods referred to in Clause (1) of this article shall be at the value of the fair rent. The executive regulations of this law shall specify the controls for the fair rent and how to calculate it. The Council may, by a decision, amend the periods specified in Clause (1) of this article.

The law specified the termination of the rental relationship as follows:

1. The rental relationship shall not end and the lessee shall not be harmed by the transfer of ownership of the leased property to a new owner, regardless of the method or reason for its transfer.

2. The new lessor may not request the tenant to vacate the leased property or increase its rent except in accordance with the provisions of this law and its executive regulations.

3. The new lessor shall replace the previous lessor in all rights and obligations of the lease contract.

According to the law, the rental relationship does not end with the death of one of the parties to the lease contract unless the deceased is the tenant and his heirs request the termination of the lease contract. In this case, the termination shall not take place until after the expiry of a period of (30) days from the date of notification to the landlord or the expiry of the contract, whichever comes first.

If the lease contract is for a fixed term, the tenant may request its termination before the expiry of its term, if he proves the existence of exceptional and unexpected circumstances that would make the implementation of his obligations burdensome. If the landlord rejects the tenant's request to terminate the lease contract before the expiry of its term, the tenant may resort to the centre, and the centre has the authority to assess the tenant's request for termination.

The tenant is obligated to pay compensation to the landlord at a rate of (30%) as a minimum of the rent for the remaining term of the lease contract, unless the two parties agree otherwise. The law also includes a number of articles related to the executive regulations, fees, fines, executive decisions, cancellation, enforcement and publication.