The Dubai real estate market is always evolving, and new changes to the eviction notice introduced recently will bring new dynamics to the relations between tenants and landlords. Property transactions and prices in rental properties continue to rise, so a tenant in Dubai needs to be informed of these updates in case there are disputes over the rights of tenants. This article gives an in-depth analysis of what changes relating to eviction notices will affect for the tenant and what is expected to be known by the tenant.
New Interpretation of Eviction Notices in Dubai
The Dubai courts have undergone a change in the interpretation of an eviction notice. Traditionally, when a property was sold, a new buyer would be bound to serve a new 12-month notice to the occupiers while a notice had already been served by the previous owner. That extended the eviction period because the tenants could serve almost the whole of an existing notice and then face another notice after the property was sold.
Despite this, some recent decisions were delivered at the Dubai Rental Dispute Centre (RDC). Recently, the court held that eviction notices were transferable from a property seller to the new buyer if the original notice was properly served. This interpretation should ideally bring more balance and stability to the property market as both tenants and landlords are protected.
Eviction Notices Now Attached to the Property
The new interpretation signifies that an eviction notice is attached to the property rather than tied to the landlord who serves it. This is very beneficial, at least to buyers who are end-users who intend to occupy the property themselves. This prevents the previous situation where an eviction process would really be reset every time a sale of a property occurs.
It gives clarity and security to the landlords, knowing that there is something they can rely on in case they have to sell their property. For tenants, it creates a timeline by which they may need to vacate, thus planning well in advance and minimizing uncertainty.
Conditions for Eviction Remain the Same
Notwithstanding the above, the basic regulations concerning eviction in Dubai have remained unchanged under Article 25 of Law No. 33 of 2008. A landlord must give a notice period of 12 months through a notary public or by way of registered mail prior to the eviction of a tenant. Similarly, the grounds of eviction have remained specific and must be valid under the law. They include:
- Reconstruction or major repair work that cannot be executed with the tenant in residence.
- The landlord or any of his immediate family using the property for their personal use.
- Sale of property.
The tenants can only challenge an eviction notice on the grounds that it was not correctly served, or that the reasons were invalid, or in cases where the minimum period has not been observed.
Implications for Tenants in the Current Market
There has been a remarkably increased rate of transactions that have taken place in the Dubai property market, with people looking to buy instead of rent. It could get tougher for the tenants since the real estate market is facing more demand from the buyer, and if your landlord wants to sell to an end-user, there are higher chances of receiving the eviction notice. And since the eviction notices are attached to the property and are now transferable, becoming aware of the new rules and rights assists tenants in being more watchful.
The Rental Dispute Centre still provides a platform for tenants to challenge an eviction notice that is not in line with the law. The tenant should also be aware that Dubai’s rental law is not based on the rule of precedent; instead, each case will be judged on its merits. That means decisions may vary between cases, which adds another factor of uncertainty to the process.
Rent Restrictions and Rental Index Regulations
The Dubai Land Department rental index shall be followed by the landlords in Dubai when considering increases in rent. This is further supported by an online calculator from the DLD, which ascertains what the current market rates are for similar properties so that any proposed increase in rent should be justifiable. For example, in case the existing rent is 10% less than the average for properties of a similar nature, no increase is allowed. Alternatively, it can be increased by 5% or 10%, depending on just how far below the market rate the rent currently is.
In case of an increase in rent or a change in the contract, landlords have to give a 90-day notice. Tenants can also object, through the RDC, to any increase they believe is not justified or file any forms of invalid notices of eviction.
What Tenants Should Do Next
These changes in the eviction notice procedure make it necessary for Dubai tenants to be well-informed and proactive. The present legal status and what recent court decisions imply are of great relevance to securing one’s rights and having a stable living situation. It is advisable to consult with a lawyer familiar with Dubai real estate laws to better understand how to manage such complex situations.
How Notary Public Dubai Can Help You
The comprehension of your rights and responsibilities in the present law will become highly relevant in such a situation, whether you are a tenant or landlord in Dubai, facing an eviction notice or dealing with a rental dispute. Notary Public Dubai can provide expert advice and services to ensure that all the procedures are correctly followed from the legal perspective and that your interests are well looked after. Contact us today for an overview of how we can help with eviction notices, rental disputes, and any other real estate law matters in Dubai.
