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Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai
Number: Law No. (26) of 2007 Issued On: 26 November 2007 Type: Federal Law

Law No. (26) of 2007
Regulating the Relationship between Landlords and
Tenants in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal Law No. (5) of 1985 Issuing the Civil Code of the United Arab Emirates and its
amendments;
Federal Law No. (10) of 1992 Issuing the Law of Evidence Governing Civil and Commercial
Transactions;
Decree No. (2) of 1993 Establishing a Special Tribunal to Determine Disputes between
Landlords and Tenants; and
Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency,
Do hereby issue this Law.


Title


Article (1)
This Law shall be cited as “Law No. (26) of 2007 Regulating the Relationship between
Landlords and Tenants in the Emirate of Dubai”.


Definitions and Scope of Application


Article (2)
In implementing the provisions of this Law, the following words and expressions shall
have the meaning indicated opposite each of them unless the context implies otherwise:
Emirate : The Emirate of Dubai.
RERA : The Real Estate Regulatory Agency.
Real Property : Immovable property, and everything affixed or annexed to it, which is
leased out for residential purposes or for practising any business activity,
trade, profession, or other lawful activity.
Lease Contract : A contract pursuant to which a Landlord is bound to allow a Tenant to
use 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 includes any person to whom the ownership of the
Real Property is transferred during the term of lease, agent or legal
representative of the Landlord, or Tenant who is permitted by the
Landlord to sublet the Real Property.
Tenant : A natural or legal person who is entitled to use Real Property pursuant
to a Lease Contract, or any person to whom the lease is legally transferred
from the Tenant.
Subtenant : A natural or legal person who is entitled to use Real Property or any
part thereof pursuant to a Lease Contract entered into with the Tenant.
Rent : The specific consideration which a Tenant is bound to pay pursuant to
a Lease Contract.
Tribunal : The Special Tribunal to Determine Disputes between Landlords and
Tenants.
Notice : A written notification sent by either party to a Lease Contract to the
other party through a Notary Public; or delivered by registered mail, by
hand, or by any other technological means approved by law.


Article (3)
The provisions of this Law shall apply to Real Property leased out in the Emirate, including
vacant and agricultural land, but excluding hotel units and Real Property provided free of
Rent by natural or legal persons as accommodation for their employees.
Lease Contracts


Article (4)
1. The contractual relationship between a Landlord and a Tenant shall be regulated by
a written Lease Contract signed by both parties which includes a description of the
leased Real Property that leaves no room for uncertainty, the purpose of the Lease
Contract, the name of the owner, the number and type of the land, and the area where
the Real Property is located. It shall also determine the term of the Lease Contract, the
Rent, and the Rent payment method.
2. All Lease Contracts related to Real Property which is governed by the provisions of this
Law, and any amendments thereto, shall be registered with RERA. Judicial authorities
and Government departments, authorities, and corporations must not consider any
dispute or claim, or otherwise take any action based on a Lease Contract, unless the
Lease Contract is registered with RERA in accordance with the relevant rules and
regulations.

Term of Lease Contracts


Article (5)
The term of a Lease Contract must be specified. Where the term is not specified in the
Lease Contract or where it is impossible to prove a claimed term, the Lease Contract shall
be deemed valid for the period prescribed for payment of the Rent.


Article (6)
Where the term of a Lease Contract expires but the Tenant continues to occupy the Real
Property without any objection by the Landlord, the Lease Contract shall be renewed for
the same term or for a term of one (1) year, whichever is shorter, under the same terms of
the previous Lease Contract.


Article (7)
Where a Lease 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 sublease contract entered into between a Tenant and a Subtenant shall
expire upon expiry of the term of the Lease Contract entered into between the Landlord
and the Tenant, unless the Landlord expressly agrees to extend the term of the sublease
contract.


Rent


Article (9)
Landlords and Tenants must specify Rent in Lease Contracts. In any event, the Rent may
not be increased, nor may any of the terms of the Lease Contract be amended, before the
lapse of two (2) years from the date on which the contractual relationship is established
for the first time.


Article (10)
RERA shall have the authority to establish criteria relating to the percentage 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 shall cover the use of the Real Property facilities, such
as swimming pools, playgrounds, gymnasiums, health clubs, car parks, and other facilities.


Article (12)
A Tenant shall pay the Landlord the Rent on the dates mutually agreed upon by them. In
the absence of an agreement or where it is impossible to verify the payment dates, the
Rent must be annually paid in four (4) equal instalments to be settled in advance.


Article (13)
1. Subject to the provisions of Article (9) of this Law and for the purposes of renewing
a Lease Contract, the Landlord and Tenant may reconsider the Rent, and if they do
not reach an agreement and it is proved necessary to extend the term of the Lease
Contract, the Tribunal may decide on extending the Lease Contract and determine the
Rent based on the rental value of similar Real Property.
2. The Tribunal shall determine the rental value of similar Real Property in accordance
with the legislation approving the criteria and Rent amounts proposed by RERA, taking
into account the condition of the Real Property and the prevailing rental value of
similar Real Property in other similar Real Property markets within the same area.


Article (14)
Unless otherwise agreed by the parties to a Lease Contract, where either party does not
wish to renew the Lease Contract or wishes to amend any of its terms, that party must
notify the other party of this intent no less than ninety (90) days before the date on which
the Lease Contract expires.


Landlord Obligations


Article (15)
A Landlord shall be bound to hand over the Real Property in a good condition which allows
the Tenant to fully use it as stated in the Lease Contract.

Article (16)
Unless otherwise agreed by the parties, a Landlord shall, during the term of the Lease
Contract, be responsible for the Real Property maintenance works and for repairing any
breakdown or defect that affects the Tenant’s full intended use of the Real Property.


Article (17)
A Landlord may not make to the Real Property, or any of its facilities or appurtenances,
any changes that preclude the intended use of the same. The Landlord shall be responsible
for any such changes whether made by him or by any other person authorised by him.
In addition, the Landlord shall be responsible for any breakdown, impairment, defect, or
damage sustained by the Real Property for reasons beyond the control of the Tenant.


Article (18)
A Landlord must grant the Tenant any approvals required to be submitted to competent
official entities in the Emirate where the Tenant wishes to carry out decoration works in
the Real Property or any other works that require such approvals. These approvals shall be
granted on condition that the works do not affect the structure of the Real Property and
that the Tenant provides the official documents proving that the approvals are required.


Tenant Obligations


Article (19)
A Tenant must pay the Rent on its due dates and must maintain the Real Property in
a good condition as a reasonable person would maintain his own property. Without
prejudice to the Tenant’s obligation to carry out any restoration that is agreed upon or
which is customary for Tenants to undertake, the Tenant may not make any changes or
carry out any restoration or maintenance works in the Real Property without obtaining
the permission of the Landlord and the necessary licences from the competent official
entities.


Article (20)
When entering into a Lease Contract, a Landlord may collect from the Tenant a security
deposit for the purpose of maintenance of the Real Property upon the expiry of the Lease
Contract. The Landlord must refund this deposit or the balance thereof to the Tenant upon
expiry of the Lease Contract.


Article (21)
Upon expiry of the term of a Lease 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 Lease Contract, except for ordinary wear and tear or any
damage sustained due to reasons beyond the Tenant’s control. Where a dispute between
the parties arises in this regard, it shall be referred to the Tribunal to issue its decision on
the same.


Article (22)
Unless the Lease Contract states otherwise, the Tenant must pay all fees and taxes owed
to Government entities and departments in relation to the use of the Real Property, and
must pay the fees or taxes prescribed for any sublease of the Real Property.


Article (23)
Unless otherwise agreed by the parties, upon vacating, and surrendering possession of,
the Real Property, the Tenant may not remove any fixed leasehold improvements made
by him.


Article (24)
Unless otherwise agreed by the parties to a Lease Contract, the Tenant may not sublease,
or assign the use of, the Real Property to third parties unless the relevant written consent
of the Landlord is obtained.


Eviction Cases


Article (25)
1. A Landlord may request eviction of the Tenant from the Real Property before expiry of
the Lease Contract term in any of the following cases:
a. where the Tenant fails to pay the Rent or any part thereof within thirty (30) days
from the date of service of a Notice on the Tenant by the Landlord requesting the
payment;
b. where the Tenant sublets the Real Property or any part thereof without obtaining
the Landlord’s written approval, in which case the eviction shall apply to the
Subtenant, who shall reserve the right to claim compensation from the Tenant;
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c. where the Tenant uses the Real Property or allows others to use it for any illegal
purpose or for a purpose which conflicts with public order or morals;
d. where the Tenant makes any change to the Real Property that endangers its safety
in a manner that makes it impossible to restore the Real Property to its original
state; or causes damage to the Real Property as a result of his deliberate act, or his
gross negligence by failing to exercise due caution and care or allowing others to
cause that damage;
e. where the Tenant uses the Real Property for a purpose other than that for which it is
leased, or otherwise uses the Real Property in a manner that violates the planning,
construction, and land use regulations in force in the Emirate;
f. where the Real Property is likely to collapse, provided that the Landlord proves this
by a technical report certified by the Dubai Municipality, or
g. where the Tenant fails to comply with any of his obligations under this Law or any
of the Lease Contract terms within thirty (30) days from the date on which a Notice
requesting him to comply with that obligation or term is served upon him by the
Landlord.
2. Upon expiry of the Lease Contract, the Landlord may seek eviction of the Tenant from
the Real Property if:
a. the competent Government entities decide that the demolition and reconstruction
of the Real Property are mandated in accordance with urban development
requirements in the Emirate;
b. the Real Property is in a condition that requires restoration or comprehensive
maintenance that cannot be carried out while the Tenant occupies the Real
Property, provided that this condition of the Real Property is verified by a technical
report certified by the Dubai Municipality;
c. the Landlord wishes to demolish and reconstruct the Real Property or to add
any new structures that would prevent the Tenant from using the Real Property,
provided that the Landlord obtains the required permits from the competent
entities; or
d. the Landlord wishes to retake possession of the Real Property for his own use or for
use by any of his first-degree relatives.
In any of the above-mentioned four (4) cases, the Landlord must notify the Tenant of the
eviction reasons no less than ninety (90) days prior to expiry of the Lease Contract.


Article (26)
If, upon expiry of a Lease Contract, the Landlord requests retaking possession of the Real
Property for his own use or for use by any of his first-degree relatives, and the Tribunal
awards him that possession, the Landlord may not rent the Real Property to a third party
before the lapse of at least one (1) year from the date of retaking possession of the Real
Property. Otherwise, the Tenant may request the Tribunal to award him appropriate
compensation.


General Provisions


Article (27)
A Lease Contract does not expire upon the death of the Landlord or the Tenant. The
contractual relationship shall continue with their heirs unless the heirs of the Tenant wish
to terminate that relationship, in which case the termination shall come into effect no less
than thirty (30) days after the date of notifying the Landlord of this intent or after the date
of expiry of the Lease Contract, whichever occurs earlier.


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 in accordance with the Lease Contract
entered into with the previous owner, provided that the Lease Contract has a fixed date.


Article (29)
1. A Tenant shall have the right of first refusal to return to the Real Property where it is
demolished and reconstructed, or renovated and restored, by the Landlord, in which
case the Rent must be determined in accordance with the provisions of Article (13) 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 of
the same by the Landlord.

Article (30)
If the Tribunal issues an award terminating the Lease Contract while the Real Property is
occupied by a Subtenant under a contract entered into with the Tenant and approved by
the Landlord, the Subtenant may continue to occupy the Real Property under the terms of
the sublease contract.


Article (31)
Filing a claim to evict a Tenant does not exempt the Tenant from paying the Rent for the
whole period during which the claim is being heard until a relevant award is rendered and
enforced.


Article (32)
If the Landlord and Tenant agree in the Lease Contract, or in any other subsequent
agreement, to refer any dispute arising between them out of the Lease Contract
performance to arbitration, neither party may take any action that would affect the Real
Property or the parties’ rights and obligations as set forth in the Lease Contract.
The Tribunal may, upon the request of the Landlord or the Tenant, issue any interim
awards it deems appropriate to preserve the rights and legal positions of the parties until
an arbitration award is rendered.


Final Provisions


Article (33)
In case a dispute arises where the Landlord and Tenant have not agreed on the arbitrators
or where one or more of the agreed on arbitrators refrains from doing the work, resigns, is
removed, or is disqualified; or where an issue arises preventing the arbitrator from doing
his work in the absence of an agreement between the parties in this regard, the Tribunal
shall, upon the request of either party, 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)
The Landlord may not disconnect services from the Real Property or disturb the Tenant’s
use of the Real Property in any manner.
If this happens, the Tenant may resort to the police station under whose jurisdiction the
Real Property falls to seek remedy of the disturbance or to file a police report regarding the
same. He may also resort to the Tribunal by filing a claim for compensation for damage,
supported by the official reports proving the disturbance.


Article (35)
Awards relating to vacating Real Property shall be enforced through the Tribunal pursuant
to the rules and procedures issued in this respect.
Other awards issued by the Tribunal shall be enforced by the Enforcement Division of the
Dubai Courts.


Article (36)
RERA shall prepare the bylaws and resolutions required for the implementation of the
provisions of this Law and shall submit the same to the Chairman of the Executive Council
for approval.


Article (37)
This Law shall be published in the Official Gazette and shall come into force sixty (60) days
after the date of its publication.


Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 26 November 2007
Corresponding to 16 Thu al-Qidah 1482 A.H