All You Need To Know About Tenancy Contracts in UAE

The landlord-tenant relationship could take many shapes as the clock ticks on. Once you enter the agreement, you will be exposed to the many facets of this association. Not knowing all these facets in advance could stem serious issues as you go down the road. Before you sign the last paper and receive keys to your new apartment, isn’t it a good idea to know about tenancy contracts in UAE? We have put together a comprehensive guide on tenancy rights in UAE. Keep reading to know more!

What is a tenancy contract?

A tenancy contract is a rental agreement between a landlord and the renter. The contract starts as soon as the tenant sign the last paper and receives the keys to the property. A landlord and tenant are legally bound by this contract to fulfill their duties and responsibilities. The various clauses of this agreement outline the parties’ rights and obligations on legal grounds.

Renting an apartment could lead to many disputes between the owner and the renter. A tenancy agreement is the best tool to avoid all these issues since it outlines purposeful points. The contract outlines everything from the duration of tenancy to the rights and obligations and all the inclusive terms and conditions.

Tenancy contract regulation in UAE:

The Real Estate Regulatory Agency (RERA) regulates real estate in UAE. It also governs agency contract rules and resolves the associated disputes. The Ejari system in UAE has developed a new tenancy contract system. The new system has made it mandatory that all the tenancy agreements must be registered to avoid any future mishap.

RERA regulates the agreements and relationships between landlords and tenants to avoid disputes. The Dubai rental law No. 26 of 2007 outlines the roles and duties of landlords and tenants to avoid potential misunderstandings. The Rent Dispute Settlement Center (RDSC) is also established to look after all the rental disputes on legal grounds.

Essential inclusions of a tenancy contract:

Before you sign the papers and enter the deal, it would be best to pay closer attention to the details of the tenancy contract. Since it is designed to protect you and the owner, you must know what it entails. If you are after renting a property in well-developed communities, you should explore apartments for rent in JVC. But before that, you should study the tenancy agreement.

The agreement includes the following details.

  • Landlord’s name and contact details
  • Tenant’s name and contact details
  • Detailed property information like address, building name, and size
  • Plot number
  • DEWA premise number
  • Rent amount
  • Terms of contract
  • Security deposit amount
  • Date of contract
  • Payment method

The points mentioned earlier are general and are included in almost every contract. If there are any special terms and conditions, these must be attached to the contract papers in the form of an addendum.

Essential clauses of a tenancy agreement:

Following are a few important clauses of the contract that you must know about.

i) A single party cant terminate the agreement:

A single party cannot terminate the tenancy agreement unless it is mutually agreed upon before. If the tenant wishes to retain the property, the contract will automatically extend for the next tenure (One year or a mutually agreed upon period). Terms and conditions will remain unchanged for the next period.

ii) Notice of amendment:

If the landlord wants to end the contract or make any necessary amendments, he must notify the tenant 90 days before with a written notice. The notice must be provided 90 days before the contract expires. It ensures the tenant has enough time to think about the amendments and make a decision.

iii) Death of either party:

The tenancy contract will never be terminated automatically if either of the party dies. The contract will go to the heirs, and they must make a decision about it. In case the tenant dies and his heirs want to end the contract, the termination will come into effect at least 30 days after the notification.

iv) Change of ownership:

If the property is transferred to a new owner, the contract will still remain intact. The ownership transfer will not affect the tenant’s rights and obligations. It will continue if the tenancy contract has a fixed date.

A tenancy contract has been in place to protect both parties’ rights. If you intend to shift to UAE, you must consider the Jumeirah village circle community for real estate investment. Once you are done with that, understanding the tenancy contract should be your next task.

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