The Dubai Land Department (DLD) recently announced the
introduction of a "Unified Lease Form" contract which
will be unveiled next month (March 2017). Use of the form to govern
leasing arrangements will be mandatory for landlords and
What is it and which tenancies does it apply to?
This is a standardised tenancy contract for residential,
industrial and commercial units. It is based on the applicable
Dubai tenancy laws.
Why has the DLD
taken this step?
The new lease form has been designed to facilitate the DLD's policy of
encouraging transparency and professionalism within the real estate
market. The new form is intended to regulate the relationship
between all parties involved in a leasing transaction and set out
their respective rights. The DLD hopes that the clarity
which comes with the unified form will result in a boost in
consumer confidence and subsequently in investment in Dubai.
What are the key clauses?
The form is drafted in both English and Arabic and includes
standard terms and conditions that require the tenant to:
inspect the premises and to agree with the landlord to lease it
in its current condition;
use the property for its intended purpose, which includes not
sub-leasing or transferring the property in whole or in part to any
not make any amendments or modifications without the
landlord's written consent;
pay all the utility charges resulting from occupying the
property, including electricity, water, cooling and gas charges
unless otherwise agreed;
adhere to the rules and regulations for the building's
common parts; and
settle any disputes at the DLD Rent Committee.
It also specifically refers to Article 25 of Law 26 2007 (as
amended) which specifies the grounds on which the landlord can
evict the tenant, and also refers to Article 16 of the same law,
which states that landlords are responsible for all maintenance
unless agreed otherwise.
The inclusion of this provision is not surprising as, in our
experience, the two most common disputes between parties relate to
maintenance and/or repayment of a deposit.
How will tenancies change?
Currently, there are a variety of tenancy contract forms being
used by landlords in Dubai, some of which include terms and
conditions that conflict with recent Dubai laws. The objective of
this reform is to help prevent confusion relating to the terms
being agreed by the parties and create greater
transparency/predictability when it comes to leasing transactions
in general, thus reducing tenancy disputes.
On most commercial transactions it will be expected that
landlords and tenants will still agree special conditions which
will apply to the tenancy which may (or may not) be annexed to the
contract. As an example, if the landlord wished to pass any
maintenance obligation to the tenant (contrary to Article 16
mentioned above), this should be noted in an addendum to the
The new unified lease document should be executed by the
landlord, tenant and two witnesses.
Will you still have to register the tenancy with EJARI?
At present, Dubai leases are agreed separately from the EJARI
system and parties are only obliged to register their contract with
EJARI afterwards. However, this new standard lease is to be issued
jointly by EJARI and the Dubai Government and all new tenancies
must be processed within this legal framework.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
In 1971, the Government of the Cayman Islands enacted the Registered Land Law. This Law introduced a system of land registration which is accurate, efficient, and simple. This system is similar in a number of ways to the registered land system in the United Kingdom and to the Australian Torrens System (invented by Sir Robert R. Torrens, an Australian who on the 27th of January, 1858, introduced a bill in South Australia which later became in Australia The Real Property Act).
The use of LOIs as the basis for construction projects has mushroomed in the Gulf in rent years. However the practice carries a significant risk to the parties involved, who may end-up finding themselves in a legal predicament. Heba Osman, Partner, Fenwick Elliott LLP, writes.
This is the second of two articles, which provide an overview of two ‘self-help' remedies available under the general law in the United Arab Emirates (UAE), for the unpaid and, no doubt, disgruntled contractor.
In principle, when the parties agree to arbitrate, they shall be
bound by that agreement. It should therefore follow that when a
party initiates arbitration proceedings, the other party - the
respondent – will avail itself of the opportunity to present
its case and participate in the proceedings.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).