The international financial hub of the emirate Dubai, renowned for the presence of international companies and firms in the area has released new regulations related to protections and privileges of property owners and the tenants.
The law viz. DIFC Leasing Law Number 1, 2020 was implemented by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE has the prime objective of increasing the attraction of property market at DIFC and DIFC’s vow of aligning the legal and regulatory framework in tandem with the international best practices.
The new Leasing Law sets out new regulations which can be aligned with the common law jurisdictions:
- introduction of general requirements for leases and obligations for lessors and the lessees;
- introduction a tenancy deposit scheme (TDS) in case of residential leases that would be administered by Registrar of Real Property;
- a requirement of submission of the condition reports by the residential lessors as per the Leasing Law Number 1 of 2020;
- the imposition of the maximum limit on security deposits take from the residential lessors;
- introduction of explicit provisions with respect to termination of the leases, disposal of goods and chattels that remains at the property.
- a prohibition against acceptance of key-money or any consideration for the goodwill of any business in respect of retail leases,
- also, new provisions related to the termination of leases including the circumstances under which lease may be terminated by court order, by agreement between the parties or surrendered.
The new Leasing Law supplements the prevailing Real Property Law in the zone and provides a crystalline guide to right and duties to lessors and lessees of properties in the DIFC.
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