UAE Law and Practice Contributed by: Duncan Pickering, Nicola de Sylva, Sean Cope and Marta Almeida, DLA Piper LLP
Dubai In Dubai, termination rights are governed primarily by Dubai Law No 26 of 2007 (as amended), which lim - its early termination to specified statutory grounds, including non‑payment of rent, misuse of the prop - erty, or circumstances requiring demolition or major renovation. 6.20 Registration Requirements Abu Dhabi Leases of less than four years are required to be reg - istered by the landlord (or property management com - pany) in the Tawtheeq system. Leases of between four and 25 years attract a registration fee equal to 1% of the rent “on a one-year lease basis”. The authors understand that the DMT’s current practice is to apply the 1% fee against the year-one rent value, multiplied by the total length of the term. Leases for over 25 years attract a registration fee equal to 4% of the value of consideration. Dubai Leases of less than ten years are required to be reg - istered on the Ejari system, using the DLD mandatory form of lease. A nominal registration fee is payable. Leases with a term of ten years or more require reg - istration on the full register at the DLD. A registration fee equal to 4% of the total rental value of the lease is payable in equal proportion by the landlord and ten - ant, unless agreed otherwise. 6.21 Forced Eviction Abu Dhabi Article 23 of Abu Dhabi Law No (20) of 2006 (as amended) sets out grounds that permit a landlord to seek early termination or eviction of the tenant. Grounds permitting termination during the lease term include: • failure to pay rent; • assignment or subletting the premises without consent; • use of the premises other than for the purpose let or for a detrimental purpose; • unlawful occupancy; • condemnation of the premises;
Separately, where the landlord intends to demolish or redevelop the premises, to occupy them for its own use, or to carry out comprehensive maintenance or works that cannot reasonably be undertaken while the tenant remains in occupation, eviction is generally only available at lease expiry, subject to compliance with the applicable statutory notice and evidentiary requirements. Dubai Article 25 of Dubai Law No (26) of 2007 (as amended) sets out grounds that permit a landlord to seek early termination of a lease for tenant default and to re-enter premises, including: • failure to pay rent, after notice; • subletting the premises without consent; • illegal or immoral use of the premises; • failure to keep the premises occupied for specified periods of time, without justification; • any change to the premises which renders them Separately, Dubai law permits eviction at lease expiry, subject to 12 months’ prior notice, where the land - lord intends to demolish or substantially redevelop the premises, or to occupy them for personal use, subject to compliance with statutory notice and evidentiary requirements. In both Abu Dhabi and Dubai, where a landlord wishes to terminate a lease prior to its expiry pursuant to an event of default, 30 days’ prior written notice of default should be served on the tenant through the notary public or by registered mail. If the tenant disputes the grounds for early termination of the lease, a case can be lodged at the relevant Rent Disputes Settlement Centre. There are no prescribed statutory timelines for determination of eviction or termination claims. 6.22 Termination by a Third Party Under the Civil Code, property can be appropriated by the government for the public benefit. In such circum - stances, “fair compensation” must be paid. Whether unsafe or which causes damage; • unauthorised use of the premises; • condemnation of the premises; • breach of the tenant’s obligations; or • demolition notices from authorities.
• breach of the tenant’s obligations; or • demolition notice from authorities.
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