Dubai introduces new standard tenancy contract

“It is anticipated that the Ejari system and processes will gradually move fully online"
The law firm claimed any such additional terms or addendum will have to be filled in a bilingual form.
By Parag Deulgaonkar
Mon 13 Mar 2017 08:35 AM

The Dubai Land Department has introduced a standard form
tenancy contract for use in relation to all residential, commercial and
industrial and residential leases of property located in Dubai according to Al
Tamimi & Company, a top law firm in the UAE.

As from 1 March 2017, it is now mandatory to use such
standard form in order to register a lease in Ejari, the emirate’s official
lease registration system.

The new standard form seeks to further regulate the
landlord and tenant relationship and provide safeguards in relation to the
respective rights of the parties. The aim of the new standard form is to
provide greater certainty, particularly with forms of lease currently used in
Dubai which may not be particularly well drafted or conflict with existing
laws.

The new form contains a number of standard clauses.
However, there is the option to register additional terms or an addendum to the
standard form. This will be of particular relevance to leases of commercial
property which often have to cater for more complex, commercial arrangements.
In its update on the standard tenancy contract form, Al Tamimi & Company
states that any such additional terms or addendums will form an integral part
of the contract and the parties to the agreement will be able to rely upon the
provisions contained in them if a dispute is brought before the Rental Disputes
Settlement Centre (RDSC).

“It is anticipated that the Ejari system and processes
will gradually move fully online. This may allow landlords to register standard
forms of additional terms which it can access, modify and generate online if
required for specific leasing transactions.

“Once this system is fully implemented, it is anticipated
that a separate addendum will not be accepted and the only accepted form of
lease for registration will be one that is generated through such online
system. Such a generated form will integrate the standard form lease and any
additional terms into one bilingual document to be executed by the parties,” it
added.

The law firm also stated that any such additional terms
or addendum will have to be in a bilingual form and added that this is of
particular significance as “the Arabic text will prevail in the event that a
dispute under the lease is brought before the RDSC (irrespective of any
prevailing language clause favouring the English text)”.

The standard form lease does not apply in relation to
long leases that are older than 10 years which should be registered separately
in the Real Property Register maintained by the DLD, Al Tamimi & Company
explained.

Last week, Arabian Business reported that the DLD is working to introduce a new rental security deposit form, which will ease the process of refund for tenants.

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