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His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, issued Law No. (5) of 2024 regarding real estate leasing in the Emirate of Sharjah.
The provisions of the law apply to properties rented for residential, commercial, industrial or professional purposes in the Emirate of Sharjah. The following are exempt from the application of the provisions of this law:
1- Agricultural lands.
2 – Real estate granted by the Emirate government for residential purposes unless owned.
3 – The property provided by the employer to house those who work for him without receiving rent from them. This exception does not apply to the rental relationship that arises between the employer and the lessor of the property.
4 – Real estate belonging to hotel or tourist facilities rented to their guests only.
5 – Real estate located within the free zones in the emirate, which have special judicial committees or bodies, specialised in resolving rental disputes that arise within their borders.
6 – Real estate and contracts specified by a decision issued by the Executive Council of the Emirate of Sharjah.
According to the law, the parties to the rental relationship are obligated to conclude the rental contract in writing or electronically, according to the forms approved by a decision of the Executive Council of the Emirate of Sharjah. The executive regulations of this law specify the data and conditions that must be available in this contract and how to conclude it.
The law stipulates that rental contracts shall be certified as follows:
1- The lessor is obligated to certify the lease contract or any renewal of its term and pay the fees due to the municipality or the authorities it authorizes within (15) days from the date of its issuance.
2- If the landlord refuses to ratify the lease contract within the period specified in Clause No. (1) of this Article, the tenant must request the judge of urgent matters at the center to compel the landlord to ratify it.
3- In the event that the lease contract is not certified by the municipality or the authorities authorized by it, an administrative fine shall be imposed on the lessor, as determined by the executive regulations of this law, in addition to the certification fees due.
4- The municipality may request the judge of urgent matters in the center to oblige the landlord to certify the lease contract and pay the prescribed fees and fines at any time.
5 – Except for the Centre, government agencies in the Emirate shall refrain from accepting any uncertified lease contract, in accordance with the provisions of this Law and its executive regulations, in any transaction or service they provide.
According to the law, in the absence of a certified lease contract, either party to the rental relationship may file a lawsuit with the Rental Disputes Centre in the Emirate of Sharjah to prove the rental relationship and its effects using all methods of proof stipulated in the applicable legislation. The landlord is required to pay the lease contract certification fees after proving it.
The law specified the lessor’s obligations, which stipulated:
1- Handing over the leased property and its accessories to the tenant in a condition suitable for achieving the intended benefit, and without any impediment that hinders its use throughout the lease term in accordance with what has been agreed upon.
2 – Carrying out the necessary maintenance of the rented property, unless the two parties to the lease agreement agree otherwise.
3 – Not to make any changes to the rented property that would prevent or reduce its use, without written permission from the tenant.
4 – Granting the tenant the necessary approvals to submit to the relevant authorities in the emirate whenever he wishes to carry out interior design work in the rented property that is consistent with the purpose for which it was allocated or any other work that requires these approvals, provided that these works do not affect the structural structure of the rented property or the property in which it is located.
5 – Not to expose the tenant, either personally or through others, to an act intended to disturb or pressure him, to vacate the rented property or deprive him of full enjoyment of its accessories, or to cut off or disconnect services to it or to the property in which it is located.
6 – Return any financial guarantees previously provided by the tenant, upon termination of the rental relationship, unless they have been deducted in whole or in part, in return for damages caused by the tenant to the rented property, and are not included in normal consumption.
Without prejudice to the tenant’s right to request termination or a reduction in rent in proportion to the reduction in use, the tenant may resort to the urgent matters judge at the center, to compel the landlord in the event of his breach of any of his obligations stipulated in Article (8) of this law after notifying him or failing to contact him. In the event that the landlord fails to carry out the necessary maintenance, the tenant may carry out this maintenance at his own expense, with the right to demand a deduction of what he spent on the necessary maintenance from the rent.
The law defines the tenant’s obligations as follows:
1- Paying the rent on the due dates or as agreed upon in writing.
2 – Use the rented property as agreed upon in the lease contract.
3 – Not to make any changes or modifications to the rented property, without obtaining written permission from the landlord, and the necessary licenses from the competent authorities.
4 – Leaving the plants, constructions or improvements he made in the leased property, after the expiry of the lease term, the removal of which would cause damage to the leased property, unless the two parties to the lease contract agree otherwise.
5 – Maintaining the rented property and carrying out routine maintenance, unless the two parties to the lease agreement agree otherwise, and enabling the lessor to carry out the necessary maintenance if he is committed to it.
6 – Paying the value of service consumption, any damages he may have caused to the rented property, and any other fees he is legally obligated to pay, starting from the date of his receipt of the rented property, until the date of its delivery to the landlord. In no case may the landlord be charged any fees or expenses, whatever their type, or the party entitled to them, which the tenant is obligated to pay, unless the two parties to the lease agreement agree otherwise.
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 changes that cannot be removed or restored to their previous condition, the landlord may resort to the urgent matters judge at the center to compel the tenant in the event of his breach of any of his obligations stipulated in Article (10) of this law after notifying him or failing to contact him.
The law stipulates that the tenant may not waive, whether for a fee or without a fee, all or part of the lease contract and the rights arising therefrom. The tenant may re-lease all or part of the leased property, in accordance with the terms and conditions specified in the executive regulations of this law.
The law addresses the reasons for eviction as follows:
1- The landlord may not request the tenant to vacate the leased property before the expiry of (3) years from the date of the start of the rental relationship for the purpose of residential use and (5) years for the purposes of commercial, industrial or professional use, unless one of the following reasons is available:
A- If the tenant does not pay the rent or any installment thereof within (15) days from the date it is due.
B- The tenant’s violation of any of his legal or contractual obligations, and his failure to remove the violation within (30) days from the date of notification by the landlord.
C – If the tenant assigns all or part of the lease contract, or re-rents all or part of the leased property, in violation of the provisions of this law and its executive regulations, without prejudice to the provisions for transferring ownership of the commercial premises stipulated by law.
D – If the tenant uses the rented property or allows others to use it for a purpose other than that specified in the lease contract or in violation of its terms or uses it for purposes that conflict with public order or public morals.
E – If the landlord wishes to demolish the rented property, rebuild it, or carry out comprehensive maintenance, which makes it impossible for the tenant to be present in the property in accordance with the conditions specified in the executive regulations of this law.
And – if the landlord wishes to occupy the rented property for the purpose of residence for himself or one of his first-degree adult relatives, provided that the following occurs:
A. He shall not own another property suitable for housing within the municipality’s jurisdiction.
b. Notifying the tenant of the eviction request within a period of not less than 3 months from the date set for the eviction.
C. That the landlord himself or one of his first-degree adult relatives, within two months, actually occupy the leased property after it has been vacated by the tenant and for a period of one year without interruption.
2. If the landlord does not comply with the conditions set forth in paragraphs (e) and (f) of this article, the tenant shall have the right to claim compensation for the damage he suffered from the eviction before the center.
The law stipulates that if the landlord refuses to receive the rent, or any installment thereof, or does not designate a place where payment will take place, the tenant may deposit the agreed-upon rent or installment with the center, in accordance with the controls specified in the executive regulations of this law. If the landlord and tenant do not agree on the method and date of payment of the rent, or it is impossible to prove the agreement, the method of payment shall be in four installments of equal value divided over the term of the lease contract.
According to the law, the lessor may not increase the agreed-upon rent before the expiry of (3) years from the date of the start of the rental relationship, unless the parties to the rental contract agree otherwise. If the lessee accepts an increase in the rent before the expiry of the three years, the lessor may not increase it again, except after the expiry of two years from the date of the increase. The increase in the rent after the expiry of the periods referred to in Clause (1) of this article shall be at the value of the fair rent. The executive regulations of this law shall specify the controls for the fair rent and how to calculate it. The Council may also, by a decision thereof, amend the periods specified in Clause (1) of this article.
The law defines the termination of the rental relationship as follows:
1- The rental relationship shall not end and the tenant shall not be harmed, due to the transfer of ownership of the leased property to a new owner, regardless of the method or reason for its transfer.
2 – The new landlord may not request the tenant to vacate the leased property, or increase its rent, except in accordance with the provisions of this law and its executive regulations.
3. The new lessor replaces the previous lessor in all rights and obligations of the lease contract.
According to the law, the rental relationship does not end with the death of one of the parties to the rental contract, unless the deceased is the tenant, and his heirs request the termination of the rental contract. In this case, the termination shall not take place until after the expiry of a period of (30) days from the date of notifying the landlord of this, or the expiry of the contract, whichever comes first. If the rental contract is of a fixed term, the tenant may request its termination before the expiry of its term, if he proves the existence of exceptional, unforeseen circumstances that would make the implementation of his obligations burdensome. If the landlord rejects the tenant’s request to terminate the rental contract before the expiry of its term, the tenant may resort to the center, and the center has the authority to assess the tenant’s request for termination. The tenant is obligated to pay compensation to the landlord at a rate of (30%) as a minimum of the rent for the remaining term of the rental contract, unless the two parties agree otherwise.
The law also included a number of articles related to the executive regulations, fees, fines, executive decisions, cancellation, enforcement and publication.
