The Executive Regulations issued by the Executive Council of the Emirate of Sharjah regarding property leasing for the year 2024 outline the following key points:
1. Definitions (Article 1)
Key terms such as "Emirate," "Council," "Law," "Municipality," "Center," "Lessor," "Lessee," "Lease Contract," "Property," "Leased Unit," "Rent," "Essential Maintenance," "Routine Maintenance," "Notice," and "Announcement" have been defined. These definitions clarify the fundamental concepts used in the regulations.
2. Conclusion of the Lease Contract (Article 2)
- The lease contract and its renewal must be executed in writing or electronically using the forms approved by the Council.
- The contract must include details such as the parties involved, description of the leased unit, purpose of leasing, lease duration, rental amount, and payment method.
- Both parties must update their information and addresses in case of any changes.
- If the lease contract is not attested by the Municipality, the lessor will face an administrative fine equivalent to double the attestation fee.
3. Subleasing Regulations (Article 3)
- The lessee may sublease all or part of the leased unit, provided they are a legal entity licensed by the Department of Economic Development.
- The lease contract must include a provision allowing subleasing or the lessee must obtain written approval from the lessor.
- The sublease contract must be executed and attested according to the specified regulations.
- The sublease period must not exceed the duration of the primary lease contract.
4. Eviction of the Leased Unit for Demolition or Maintenance (Article 4)
- The eviction of a tenant due to the lessor’s intention to demolish, reconstruct, or conduct major maintenance is subject to specific conditions, including:Obtaining the necessary permits.Providing the lessee with a notice period of at least three months.
- The lessor is prohibited from re-leasing the vacated unit unless they prove to the Municipality that the demolition, reconstruction, or maintenance has been completed.
5. Rent Deposit with the Center (Article 5)
- If the lessor refuses to accept rent payments, the lessee may deposit the rent amount with the Center.
- The deposit must be made in cash for the due installment, and the remaining rent may be deposited through cheques issued in favor of the lessor.
- The receipt issued by the Center serves as proof that the lessee has settled the rent obligation.
6. Fair Market Rent (Article 6)
- If the parties fail to agree on the rental amount, the fair market rent will be determined based on:Comparable units,Specifications of the leased unit,Economic conditions, andReal estate market indicators.
7. Termination of the Lease Agreement & Handover of the Leased Unit (Article 7)
- If the parties agree to terminate the lease, the lessee must vacate the unit completely and compensate the lessor for any damages.
- The lessor is obligated to issue a clearance certificate confirming that the lessee has fulfilled all obligations.
- The lessee must present this clearance certificate to the Municipality and relevant authorities to complete administrative procedures.
8. Final Provisions (Article 8)
- The lessor must attest the lease contract or any renewal as per the law’s provisions.
- Lease contracts executed before the enactment of the law must be attested within 15 days of their execution.
- The law’s provisions apply to lease agreements after the expiry of the designated protection period.
9. Repeal (Article 9)
- Executive Council Decision No. 26 of 2007, which previously regulated the relationship between lessors and lessees in Sharjah, is hereby repealed.
10. Enforcement & Publication (Article 10)
- This decision takes effect from the date of issuance and will be published in the Official Gazette.