Legal tenant rights and responsibilities in the UAE

We compiled a few rental rules and rights residents have in the UAE, based on original questions asked and answered through our Ask the Law section.


The condition of the apartment 

Your landlord is required to give you the new apartment in the best possible condition. It should ideally be cleaned and freshly painted, while all existing fixtures must be repaired or replaced if neccessary. Make sure you check that this is all done before you sign on the dotted line.

 


Landlord cannot withhold your security deposit

The security deposit is given to the landlord to deal with deliberate damage made by the tenant, and has to be returned if no damage is found.

In case of breach of contract by tenant, parties should reach an amicable settlement on remaining period of contract while security deposit has to be returned to tenant, unless deliberate damage by tenant can be proved.


Tenant wishing to break contract prematurely

As a contract between two parties, the tenancy cannot be broken before end of term by either party without substantial compensation. However, this is something tenants should look at, during the time of writing up the contract.

Make sure you enter an exit clause (in case of unforeseen circumstances such as loss of employment) so you can break the contract with some notice or minor compensation.

If the tenancy contract has no exit clause, the tenant should ideally settle the issues amicably with the landlord. The landlord cannot keep the security deposit unless deliberate damage to property by the tenant can be proven.


New Landlord

According to Article 28 of Dubai's property law amended in 2007, transfer of ownership of the building does not affect tenancy contracts. The tenant can continue with the terms of the contract and occupy the house as per all agreed-upon rights until the date specified for contract expiry. 


Cutting off services

Under no circumstances is the landlord allowed to cut services or amenities to the tenant's rental property. In case this happens, the tenant can complain at the police station in the area and can also claim compensation for damages resulting from such cuts through the Judicial Committee created for dealing with tenancy disputes.

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Legal tenant rights and responsibilities in the UAE Real estate, tenancy contracts and security deposits; laws and rights you should know

We compiled a few rental rules and rights residents have in the UAE, based on original questions asked and answered through our Ask the Law section.


The condition of the apartment 

Your landlord is required to give you the new apartment in the best possible condition. It should ideally be cleaned and freshly painted, while all existing fixtures must be repaired or replaced if neccessary. Make sure you check that this is all done before you sign on the dotted line.

 


Landlord cannot withhold your security deposit

The security deposit is given to the landlord to deal with deliberate damage made by the tenant, and has to be returned if no damage is found.

In case of breach of contract by tenant, parties should reach an amicable settlement on remaining period of contract while security deposit has to be returned to tenant, unless deliberate damage by tenant can be proved.


Tenant wishing to break contract prematurely

As a contract between two parties, the tenancy cannot be broken before end of term by either party without substantial compensation. However, this is something tenants should look at, during the time of writing up the contract.

Make sure you enter an exit clause (in case of unforeseen circumstances such as loss of employment) so you can break the contract with some notice or minor compensation.

If the tenancy contract has no exit clause, the tenant should ideally settle the issues amicably with the landlord. The landlord cannot keep the security deposit unless deliberate damage to property by the tenant can be proven.


New Landlord

According to Article 28 of Dubai's property law amended in 2007, transfer of ownership of the building does not affect tenancy contracts. The tenant can continue with the terms of the contract and occupy the house as per all agreed-upon rights until the date specified for contract expiry. 


Cutting off services

Under no circumstances is the landlord allowed to cut services or amenities to the tenant's rental property. In case this happens, the tenant can complain at the police station in the area and can also claim compensation for damages resulting from such cuts through the Judicial Committee created for dealing with tenancy disputes.

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Abu Dhabi Hyperloop route announced following Aldar agreement

A commercial high-speed Hyperloop system is to be built in the next two years in Abu Dhabi, under a landmark deal signed by Aldar Properties and one of the leading companies behind the technology.

Construction on a 10km Hyperloop transport system, using electro-magnetic levitation engineering to carry pods at 1,200kph, will begin in a critical development area between Abu Dhabi and Dubai in 2019.

A transport hub and XO Square Innovation Centre for ongoing research and development by Hyperloop Transportation Technologies, the California-based firm behind the project, will be developed in Aldar’s Seih Al Sdeirah landbank in Abu Dhabi.

The technology promises to reduce travel times between emirates from hours to just minutes.

“We are delighted to be working with HyperloopTT as they look to bring one of the world’s most revolutionary transportation technologies to Abu Dhabi,” said Talal Al Dhiyebi, chief executive of Aldar Properties.

“Alghadeer sits at such a strategic point within the UAE – close to major growth areas of both Abu Dhabi and Dubai, that it makes sense to pair it with rapid transport opportunities.

 

“We believe that Hyperloop technology can have a major positive impact on the lives of all of those living within our communities, and we look forward to this possibility becoming a reality.”

 

The site is close to the residential development of Alghadeer, where Aldar has planned a Dh10 billion development including 611 affordable homes starting from Dh290,000.

Earlier this month, HyperloopTT began construction of the first full-scale passenger and freight prototype system in Toulouse, France.

 

Developers promise the technology will be affordable and sustainable, using efficient and renewable energy sources.

 

The company expects delivery of the first passenger capsule later this year that will be assembled and optimised in Toulouse, prior to use in the Emirates.

 

A similar innovation centre to the one planned for Alghadeer recently launched in Brazil, alongside plans for a freight Hyperloop system to transport iron ore and other minerals around the country at high speed.

 

Freight terminals could also become a natural progression for the technology in the UAE, developers have said.

 

Extensive studies have been completed by Hyperloop TT using global experts in the field to present a viable plan to the UAE.

With government backing in the form of permits and regulatory assistance, the company has surged ahead of its competitors in the race to bring the technology to a commercial market.

Competitors at the Sir Richard Branson backed Virgin Hyperloop One have proposed a similar system for Saudi Arabia to reduce journey times from Riyadh to Jeddah from 10 hours to just 76 minutes.

That project is planned for 2030, whilst studies have also been done on a potential high speed line connecting Pune and Mumbai in India.

With the rapid development of HyperloopTT’s passenger pods and transport tubes in France, the company looks the most likely to bring the first commercial line into public use.

“A forward-thinking nation like the UAE is ideal for building the most revolutionary, most efficient, and fastest transportation system in the world,” said Dirk Ahlborn, chief executive of HyperloopTT.

“With this historic agreement in Abu Dhabi, we take a big step towards the world’s first commercial system.”

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Danube’s off-plan sales hit Dh820m in 2017

Dubai: Danube Properties recorded off-plan sales of Dh820 million during 2017.

“So far, we have sold out almost all of the projects that we launched since the announcement of our first project in June 2014,” said Atif Rahman, director and partner. “We have delivered 302 residential units in Glitz Residences I and II at Dubai Studio City in 2017, while 529 more units are being readied for handover in the next few weeks.”

The company has nine projects with 3,150 residential units and a combined development value of Dh2.84 billion.

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China's wealth becomes X factor in Dubai realty

Dubai: The China effect on Dubai’s real estate market is only going to get bigger. High networth Chinese buyers are looking at a selection of projects from Dubai’s leading developers to see what sort of exposures they can commit to.Over the last weekend, the Beijing-headquartered wealth management firm Letou Group hosted a high-profile event in Dubai for up to 200 wealthy Chinese investors or their representatives to offer a snapshot of Dubai’s offplan projects.

And Letou, which already has an office in Dubai, could be considering some sort of MoU (memorandum of understanding) with Damac that could see these investments being channeled into the developer’s ongoing projects portfolio, sources said. There was no immediate official confirmation from Damac about such an alliance.Elsewhere in Dubai, buyers from China have been busy acquiring property assets. Based on the Dubai Land Department Data, in the 18 months to June 2017, they pumped in Dh3.14 billion from 2,177 transactions.

“At this point, Chinese investors were ranked the eighth most active investor by number of transactions out of 217 nationalities,” said Taimur Khan, senior Analyst at Knight Frank, the real estate consultancy. “In 2017 Chinese investors remained firmly in the Top 10 most active nationalities.

“With the Dubai Property Show and property week being held in Shanghai in May, we may see greater activity from Chinese investors in 2018.”

But the Chinese investor push into Dubai realty should be seen as part of a bigger play. Knight Frank issued a report Tuesday that rates the UAE as having the third highest potential among 67 countries to make full use of China’s “Belt and Road Initiative”. In fact, UAE could well be the “Hub of the Belt”.

The Belt and Road Initiative aims to connect the world’s second-largest economy with the 67 countries through a series of interlinked trade and infrastructure projects. It would mean billions of dollars being pumped into local economies, with China’s public and private wealth paving the way for that.

“The GCC member nations are eager to transform their economies to reduce over-dependence on oil and gas,” said Khan. "This provides fresh prospects for Chinese investors, especially in the real estate, high-tech, and energy sectors. Over this period, the UAE has become the favored destination of the Chinese capital.”

Even outside of any Belt and Road led initiatives, prospects for high-profile Chinese involvement in the local construction sector have never been better. “The current snapshot of data shows that of the total contract value of future projects in the UAE (both projects in the design phase and in execution phase from 2018-20), Chinese firms account for 6 per cent of total value of contracts,” said Khan. “In Dubai, this is slightly higher at 7 per cent and from 2019 to 2020 it is expected to increase from 7 per cent to 9 per cent.”And it needn’t be just on the brick-and-mortar side that China is unleashing its influence on the reality and construction sectors. In September last, Five Holdings (earlier known as SKAI) had gone in for a Dh1.1 billion syndicated financing, which involved four Chinese financial institutions out of the seven that took part. Those funds were for Five’s upscale hotel projects in Dubai. 

Source: Gulf News

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