Rental agreement in Dubai: new unified standards
Dubai Land Department has prepared new standard form of the rental agreement. It shall be used by all commercial objects, accommodation and industrial objects located in Dubai. This version of rental agreement in Dubai was developed by Al Tamimi & Company legal company from the UAE.
Starting from March 1, 2017, only new standard form can be used in order to register an agreement in Ejari system.
New standard form was created in order to improve the level of regulation of relations between the landlord and the tenant and respect mutual rights of both parties. The main goal of new standard form is to make everything more clear. It mainly affects many rental agreements in Dubai that contravene local laws.
What changed in the rental agreement in Dubai?
New standard form includes a list of basic conditions. However, now it’s possible to add specific conditions or additional provisions in order to register an agreement. This feature is really important for commercial rental agreements, which has to meet other commercial requirements. Furthermore, such specific conditions will be observed during disposal of legal proceedings in The Rental Dispute Settlement Centre.
Local authorities plan to make all operations in Ejari system totally online. Such approach will allow owners registering standard agreements and additional condition forms on the website, if such operations are required by the current leasing operations.
At the moment when the system is launched, local authorities plan to remove specific conditions and replace them with new form of the agreement, making it possible to add any required provisions and conditions right on the website. The system will generate an agreement in two languages (English and Arabic), making it legally binding for both parties.
New version of rental agreement in Dubai can now be registered online by using Ejari system and adding required provisions and conditions to the standard form.
The legal company also announced that all provisions and conditions have to be written identically in both languages. This moment is very important, because the Arabic version will prevail during disposal of legal proceedings in The Rental Dispute Settlement Centre.
According to lawyers from Al Tamimi & Company, new standard form of the rental agreement in Dubai shall not be applied to long term agreements for the period of 10 years and more. Such agreements have to be registered in Real Property Register under control of Dubai Land Department.