The Tenant’s Rights in Case of Selling the Rented Property

Every day in Dubai’s real estate market, new homes are added, new contracts are signed, and new connections start. This is due to an influx of students, professionals, and investors in Dubai’s ever-growing and demanding economy.

The contractual agreements between the tenants and landlords and tenants are regulated by the Real Estate Regulatory Authority (RERA). Through RERA’s EJARI program, all agreements between a landlord and renter must be registered.

Standard contracts are available for download on their website, and the landlord may add terms as they see fit under “Additional Terms.” Following are the rights a tenant should be aware of:

Inspection of the Property

Always inspect the property before signing the contract with the landlord. The property should be in good condition or at least liveable. As the rights and obligations are linked, the tenant also must return the property in the same condition as he got it from the landlord.

Normal wear and tear is an exception and is often ignored. If anything can be a problem after a tenant moves in, he should point that out to the landlord before he signs the contract. Ensure you highlight any issues or flaws so the landlord can fix them before signing anything.

Maintenance Payment

Maintenance-related clauses are not included in the Ejari Contract. It is essential to have this conversation with your landlord or the agent about who will be in charge of what during the tenancy, as this may cause problems after some time.

Property Attorneys in Dubai frequently help draft detailed contracts that benefit both parties. The general norm is that the tenant should handle maintenance under AED 500; anything more than that is the landlord’s obligation if you have already signed a contract without maintenance instructions.

Moreover, the landlord’s obligation is the taxes, fees, and levies levied by the Dubai Land Department or the Real Estate Regulatory Agency.

Right to Receive Notice to Vacate Property

The landlord is obligated to notify his tenant when to vacate the property. Typically, the rental agreement mentions the date, and if the landlord sells the property, the rental agreement stands still. The new owner may ask the tenant to vacate the property, but he may have to give notice for 30-60 days and agree on specific terms so that the tenant can leave the property.

Suppose the landlord initially added an option in the rental agreement, “lease termination due to sale clause.” In that case, the landlord can exercise the choice to end the rental contract before the expiration date in the event of the property’s sale. 

Legally Binding Agreement Following Property Sale

A landlord may sell his property during the duration of the tenancy contract. The tenancy agreement is still valid until the expiration date. If a landlord wants to reclaim the property from its tenant for sale, it is required by law to issue a notice of their intentions at the start of the tenancy. 

In the Emirate of Dubai, Law No. 26 of 2007 Article 25 regulates the interactions between landlords and tenants. Even while he has the right to visit the house for an inspection with adequate advance notice, the landlord must also allow you to enjoy the home in peace throughout your tenure.

If a tenant finds the viewing a hassle and inconvenient, he may complain to RERA that his landlord is breaching the contract terms. If they sell the apartment and want you to vacate, this can only be agreed upon by both parties.

Right to Original Lease Terms

The tenants can leave on the original lease terms if they do not want to renegotiate. This means the new owners must comply with the lease agreements agreed upon by the previous owners and the tenants. 

The most common terms agreed upon are pets on the property, different payment methods, and limiting occupancy. Sometimes, original lease terms halt the selling process as the buyers deem them unnecessary, but the tenant finds them necessary. To avoid any future disputes, the buyer may back off from the deal.

Accepting a Relocation Fee

Under certain circumstances, the landlord may be liable to pay the tenant relocation fee. This is not enforceable by law, but asking a tenant to move out before the expiration of the rental agreement can be a hassle for him. To avoid misunderstandings and be on good terms, both parties can agree upon a relocation fee as a sign of payment for the tenant’s troubles. 

Rent Hikes

Rent increases are subject to clear-cut legal restrictions. The existing rent for the property determines the percentage increase. The landlord cannot request a rent increase if the rate is around 10% less than the rent of comparable units in Dubai. The landlord may raise the rent by up to 5% if the existing rent is between 11 and 20 percent less than similar apartments in the Emirate.

As a tenant, you have the right to know about any rent increases at least three months or ninety days before the end of the rental agreement. 

Vacating before the Rental Agreement Expiration

A tenant can only leave after the contract expires. He may talk with the landlord, and it can happen if both parties agree to some conditions. A tenant can also add some options in the contract to notify the landlord that he may leave before the tenancy period expires.

Advance Notice on Showings

The landlord must notify the tenants at least 24-48 before the showing. The landlord must choose suitable hours so the tenant is free and available to show the property. The landlord may be the owner, but the tenant lives in the property. It is up to the tenant to approve the suitable hours according to his timetable.

It is not the tenant’s job to tidy up the place as a selling prospect for the potential buyer and the landlord. Usual cleanliness is appreciated and must be kept. Still, if a landlord wants industrial-standard cleanliness, it is his job to get professional cleaning services to clean the place for a showing.

Security Payment

The tenant deposits a security amount with the landlord when signing the contract or before moving in as per agreement between both parties. The landlord must return the security deposit when the tenant leaves at the contract’s expiration. The landlord may deduct a certain amount in case of any damages to the property or depending upon the condition of the property.

Eviction

Eviction is when a landlord asks the tenant to vacate the property before the expiration of the tenancy contract. The landlord can not evict the tenant by law as the tenant has the right to protect him. If a tenant breaks any law, a landlord can kick him out.

If a tenant is involved in any illegal activity or subleases the property, the landlord can evict the tenant. If the tenant has not paid rent for the previous month, has significantly damaged the property, or has broken the conditions of the lease, the landlord is required to give the renter notice 30 days before a potential eviction.

Moreover, the landlord has the authority to evict the renter if the property is expected to be demolished by the government for any reason.

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