Emirate of Sharjah Emirate of Sharjah - Law No. 5 of 2024 regarding the rental of real estate in the Emirate of Sharjah - dated 19-9-2024
Formal Name: Formal Name Emirate of Sharjah Emirate of Sharjah - Law No. 5 of 2024 regarding the rental of real estate in the Emirate of Sharjah - dated 19-9-2024
We, Sultan bin Muhammad Al Qasimi, Ruler of the Emirate of Sharjah,
After reviewing Federal Law No. (5) of 1985 AD issuing the Civil Transactions Law and its amendments,
Federal Decree-Law No. (35) of 2022 AD issuing the Law of Evidence in Civil and Commercial Transactions,
Federal Decree-Law No. (42) of 2022 AD issuing the Civil Procedures Law,
Federal Decree-Law No. (50) of 2022 AD issuing the Commercial Transactions Law,
Law No. (2) of 1999 regarding the establishment of the Executive Council of the Emirate of Sharjah, its internal regulations and amendments,
Law No. (3) of 1999 regarding the establishment of the Sharjah Consultative Council, its internal regulations and their amendments,
Law No. (2) of 2007 regarding regulating the relationship between landlord and tenant in the Emirate of Sharjah, its executive regulations and amendments,
Law No. (7) of 2017 regarding violations and administrative penalties in the Emirate of Sharjah,
Decree-Law No. (1) of 2005 regarding the violation of cutting off services to the tenant in violation of the system,
Based on the approval of the Executive Council and the Consultative Council of the Emirate of Sharjah and in accordance with the public interest,
Article 1 Definitions
In applying the provisions of this Law, the following words and phrases shall have the meanings indicated next to each of them unless the context requires otherwise:
Emirate: The Emirate of Sharjah.
Council: The Executive Council of the Emirate.
Municipality: The municipality within whose jurisdiction the leased property is located in the Emirate.
Centre: The Rental Disputes Settlement Centre in the Emirate.
Landlord: The natural or legal person—or their representative—who has the right to dispose of the leased property or transfer its usufruct to the tenant.
Tenant: The natural or legal person who benefits from the leased property pursuant to a lease contract, including first-degree relatives residing with the tenant, or any person to whom the usufruct of the leased property is legally transferred.
Lease Contract: The contract concluded between the landlord and the lessee with the intention of enabling the lessee to use the leased property for the purpose for which it is intended for a specified period in exchange for a specified fee, in accordance with the provisions of this Law and its Implementing Regulations.
Real Estate: Anything that is permanently fixed and cannot be moved without damage or alteration of its appearance.
Leased Property: The property subject to the lease contract and intended for the lessee to use in accordance with the provisions of this Law and its Implementing Regulations.
Rental Fee: The monetary consideration specified in the lease contract in exchange for use of the leased property in accordance with the provisions of this Law and its Implementing Regulations.
Necessary Maintenance: The necessary repairs required to fulfill the intended benefit of the lease contract or to protect the leased property from deterioration, which the landlord is obligated to perform unless the parties to the lease contract agree otherwise.
Routine Maintenance: Repairs required for the normal use of the leased property, which customarily requires the lessee to perform, unless the parties to the lease contract agree otherwise.
Notification: All correspondence between the two parties to a lease agreement in accordance with the provisions of this Law and its Executive Regulations. This may be done via a notary public, registered mail with acknowledgment of receipt, email, text messages, or any other legally approved modern technology.
Notification: Notification issued by the Center or the competent authorities in accordance with the provisions of this Law and its Executive Regulations, or the legislation issued regulating the Center's work, and which is made at the request of one of the parties to the lease or by order of the Center, in accordance with the controls specified by the legislation in force in the Emirate. Notification may be made via registered mail with acknowledgment of receipt, recorded audio or video calls, mobile phone messages, smart applications, email, Buraq, other modern technology, or by any other means agreed upon by the parties to the lease.
Article 2: Scope of Applicability
- The provisions of this Law apply to properties leased for residential, commercial, industrial, or professional purposes in the Emirate.
- The following are exempt from the application of the provisions of this Law:
- Agricultural lands.
- Real estate granted by the emirate's government for residential purposes, unless owned.
- Real estate provided by an employer to house his or her employees without receiving rent from them. This exception does not apply to rental relationships between the employer and the property's landlord.
- Real estate belonging to hotel or tourism establishments rented solely to their guests.
- Real estate located within the emirate's free zones, which have special judicial committees or bodies competent to adjudicate rental disputes arising within their boundaries.
- Real estate and contracts specified by a Council decision.
Article 3: Concluding a Lease Contract
The parties to the lease are obligated to conclude a lease contract in writing or electronically in accordance with the forms approved by a Council decision. The executive regulations of this law shall specify the information and conditions required in this contract and the manner of concluding it.
Article 4: Authentication of the Lease Contract
- The landlord is obligated to authenticate the lease contract or any renewal thereof and pay the fees due to the municipality or its authorized authorities within (15) days from the date of its issuance.
- If the landlord refuses to certify the lease contract within the period specified in Clause (1) of this Article, the tenant must request the Center's Urgent Matters Judge to compel the landlord to certify it.
- If the lease contract is not certified by the municipality or its authorized authorities, an administrative fine shall be imposed on the landlord, as determined by the executive regulations of this law, in addition to the required certification fees.
- The municipality may request the Center's Urgent Matters Judge to compel the landlord to certify the lease contract and pay the prescribed fees and fines at any time.
- With the exception of the Center, government entities in the emirate shall refrain from accepting any lease contract that is not certified in accordance with the provisions of this law and its executive regulations in any transaction or service they provide.
Article 5
Lease contracts certified in accordance with the provisions of this Law and its Executive Regulations shall be considered executive documents. They may be enforced with respect to claims for eviction and surrender for non-payment of rent after the expiry of the deadlines stipulated in Articles (13) and (20) of this Law, starting from the date the tenant is notified of the executive document and instructed to pay.
Article 6
Lease contracts are exempt from municipal certification fees if one of the parties is a federal or local government entity.
Article 7: Proof of the Rental Relationship
In the absence of a certified lease contract, either party to the lease may file a lawsuit with the Center to prove the lease relationship and its effects using all the methods of proof stipulated in applicable legislation. The landlord shall be required to pay the lease certification fees after proof is obtained.
Article 8: Landlord Obligations
The landlord is obligated to:
- Delivery the leased property and its accessories to the tenant in a condition suitable for the intended use and without any impediments that would hinder its use throughout the lease term, as agreed upon.
- Perform necessary maintenance on the leased property, unless otherwise agreed upon by the parties to the lease.
- Not make any changes to the leased property that would prevent or diminish its use without the tenant's written permission.
- Grant the tenant the necessary approvals to submit to the relevant authorities in the emirate whenever they wish to carry out interior design work in the leased property consistent with its intended purpose or any other work requiring such approvals, provided that such work does not affect the structural integrity of the leased property or the property in which it is located.
- Not, personally or through a third party, subject the tenant to any act intended to disturb or pressure them to vacate the leased property, deprive them of full enjoyment of its accessories, or to disconnect or disconnect services to it or the property in which it is located.
- Any financial guarantees previously provided by the tenant shall be returned upon termination of the lease, unless they have been deducted, in whole or in part, for damages caused by the tenant to the leased property that are not included in normal wear and tear.
Article 9
Without prejudice to the tenant's right to request termination or a rent reduction commensurate with the loss of use, the tenant may resort to the Center's urgent matters judge to compel the landlord to comply with any of his obligations stipulated in Article (8) of this law after notifying him or failing to contact him. If the landlord fails to perform necessary maintenance, the tenant may perform such maintenance at his own expense, with the right to demand that the necessary maintenance expenses be deducted from the rent.
Article 10 - Tenant Obligations
The tenant is obligated to:
- Pay the rent on the due dates or as agreed upon in writing.
- Use the leased property as agreed upon in the lease agreement.
- Not make any changes or modifications to the leased property without obtaining written permission from the landlord and the necessary licenses from the competent authorities.
- Abandoning plants, structures, or improvements made to the leased property after the expiration of the lease term, the removal of which would cause damage to the leased property, unless the parties to the lease agree otherwise.
- Maintaining the leased property and performing routine maintenance, unless the parties to the lease agree otherwise, and enabling the landlord to perform necessary maintenance if he complies with it.
- Paying the cost of service consumption, any damages caused to the leased property, and any other fees he is legally obligated to pay, from the date he receives the leased property until the date it is handed over to the landlord. Under no circumstances may the landlord be charged any fees or expenses, regardless of their type or the party entitled to them, that the tenant is obligated to pay, unless the parties to the lease agree otherwise
Article 11
Without prejudice to the landlord's right to request termination or compensation for damages caused to the leased property by the tenant as a result of modifications or alterations that cannot be removed or restored to their previous condition, the landlord may resort to the Center's urgent matters judge to compel the tenant to comply with any of his obligations stipulated in Article (10) of this Law after notifying him or failing to contact him.
Article 12: Assignment of Lease and Re-Lease
- The tenant may not assign, whether for a fee or without a fee, all or part of the lease agreement and the rights arising therefrom.
- As an exception to the provisions of Clause (1) of this Article, the tenant may re-lease all or part of the leased property in accordance with the terms and conditions specified in the implementing regulations of this Law.
Article 13: Reasons for Eviction
- A landlord may not request the tenant's eviction from the leased property before the expiry of (3) years from the date of commencement of the lease for residential use and (5) years for commercial, industrial, or professional use, unless one of the following reasons is met:
- If the tenant fails to pay the rent or any installment thereof within (15) days of the due date.
- If the tenant breaches any of his legal or contractual obligations and fails to remedy the breach within (30) days from the date of notification by the landlord.
- If the tenant assigns all or part of the lease or re-rents all or part of the leased property in violation of the provisions of this law and its implementing regulations, without prejudice to the provisions for transferring ownership of the commercial premises prescribed by law.
- If the tenant uses the leased property or allows others to use it for purposes other than those specified in the lease or in violation of its terms, or uses it for purposes inconsistent with public order or public morals. If the landlord wishes to demolish, rebuild, or carry out comprehensive maintenance of the leased property, making it impossible for the tenant to remain in the property, in accordance with the conditions specified in the executive regulations of this law.
- If the landlord wishes to occupy the leased property for himself or for a first-degree relative, provided that:
- He does not own another property suitable for housing within the municipality's jurisdiction.
- He must notify the tenant of the eviction request within a period of no less than three months from the scheduled eviction date.
- The landlord himself or a first-degree relative must occupy the leased property within two months of the tenant's vacancy, for a continuous period of one year.
- If the landlord fails to comply with the conditions set forth in clauses (e) and (f) of this article, the tenant has the right to claim compensation for the damages incurred as a result of the eviction before the center.
Article 14 Rent Allowance
If the landlord refuses to receive the rent allowance or any instalment thereof, or does not designate a location where payment will take place, the tenant may deposit the agreed-upon rent allowance or instalment with the Center, in accordance with the regulations specified in the executive regulations of this law.
Article 15
If the landlord and tenant do not agree on the method and date of rent payment, or if it is impossible to prove an agreement, payment shall be made in four equal instalments divided over the term of the lease.
Article 16
- The landlord may not increase the agreed-upon rent before the expiration of three (3) years from the date of commencement of the lease, unless the parties to the lease agree otherwise. If the tenant accepts an increase in the rent before the expiration of the three years, the landlord may not increase it again until two years have passed from the date of the increase.
- The increase in the rent after the expiration of the periods referred to in Clause (1) of this Article shall be the value of the fair rent. The executive regulations of this law shall specify the controls for the fair rent and the method of calculating it.
- The Council may, by a decision, amend the periods specified in Clause (1) of this Article.
Article 17 Termination of the Lease Relationship
- The lease relationship shall not end, and the tenant shall not be harmed by the transfer of ownership of the leased property to a new owner, regardless of the method or reason for such transfer.
- The new landlord may not request the tenant's eviction from the leased property or increase the rent except in accordance with the provisions of this law and its implementing regulations.
- The new landlord replaces the previous landlord with respect to all rights and obligations under the lease agreement.
Article 18
The lease agreement shall not terminate upon the death of either party to the lease agreement unless the deceased was the tenant and their heirs request termination of the lease agreement. In this case, termination shall not take place until thirty (30) days have passed from the date of notification to the landlord or the expiration of the contract, whichever comes first.
Article 19
- If the lease agreement is for a fixed term, the tenant may request termination before its expiration if they prove that exceptional, unforeseen circumstances exist that would make fulfilling their obligations burdensome.
- If the landlord rejects the tenant's request to terminate the lease agreement before its expiration, the tenant may resort to the Center, which has the authority to assess the tenant's request for termination.
- The tenant shall be obligated to pay compensation to the landlord amounting to a minimum of 30% of the rent for the remaining term of the lease agreement, unless the parties agree otherwise.
Article 20: Executive Regulations
The executive regulations of this law regulate the terms for terminating the rental relationship and handing over the leased property.
Article 21: Collection of Fees and Fines
The municipality shall collect all fees and fines referred to in this law, its executive regulations, and the decisions issued in this regard for the benefit of the treasury of the emirate's government.
Article 22: Executive Resolutions
In implementation of the provisions of this law, the Council shall issue the following resolutions:
- The executive regulations of this law.
- The fees and fines prescribed in accordance with the provisions of this law.
- The matters not regulated by a provision in this law, provided that they do not conflict with or contravene its provisions.
- Violations and administrative penalties for the provisions of this law and its executive regulations.
Article 23: Repeal
Law No. (2) of 2007 regulating the relationship between landlords and tenants is hereby repealed. All regulations, bylaws, and executive decisions issued pursuant thereto shall remain in effect until amended or repealed by this law, its executive bylaws, or the decisions issued pursuant thereto.
Article 24: Enforcement and Publication
This law shall come into effect from the date of its issuance. The relevant authorities shall implement it, each within its jurisdiction. It shall be published in the Official Gazette.