Real Estate 2025

UAE Law and Practice Contributed by: Duncan Pickering, Nicola de Sylva, Sean Cope and Marta Almeida, DLA Piper Middle East LLP

mandatory form of lease. A nominal registration fee is payable. Leases with a term of ten years or more require registration 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 tenant, 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 land - lord to seek early termination of a lease and to re-enter the premises: • failure to pay rent; • assignment or subletting the premises with - out consent; • high occupancy levels; • use of the premises other than for the pur - pose let or for a detrimental purpose; • where the landlord wishes to demolish and redevelop the premises; • where the landlord wishes to occupy the Article 25 of Dubai Law No (26) of 2007 (as amended) sets out grounds that permit a land - lord to seek early termination of a lease and to re-enter premises: • 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; • any change to the premises which renders them unsafe or which causes damage; premises for their own purpose; • condemnation of the premises; • breach of the tenant’s obligations; or • demolition notice from authorities. Dubai

• unauthorised use of the premises; • condemnation of the premises; • breach of the tenant’s obligations; or • demolition notices from authorities.

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 guidelines as to how long the pro - cess should take. 6.22 Termination by a Third Party Under the Civil Code, property can be appropri - ated by the government for the public benefit. In such circumstances, “just compensation” must be paid. Whether and to what extent the com - pensation would cover any tenant’s interests in the property is dealt with on a case-by-case basis. 6.23 Remedies/Damages for Breach The usual remedies for landlords include the fol - lowing. Compensatory Remedies These are any damages that the landlord may be entitled to as a result of the breach and/or termination, including accrued rights (such as unpaid rent, service charges, or other payments under the terms of the lease) and other damages (such as damages caused to the property over and above what may be covered by any security deposit).

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