New rental contract system in Abu Dhabi

Lease agreements are now executory instruments for easier rent arrears claims

Tenancy contracts registered with the Abu Dhabi Municipality will have the status of executory instruments, enabling landlords to approach the Enforcement Department directly to claim arrears, evacuation and handover of the leased property, in case tenants fail to pay.

The move comes in line with the decision by Shaikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Presidential Affairs and Chairman of the Abu Dhabi Judicial Department (ADJD), on Rental Dispute Settlement Committees and the procedures undertaken before the same.

Yousuf Saeed Al Abri, ADJD’s Undersecretary, said the decision will speed up dispute resolution in property cases. “This initiative will create an attractive environment for real estate investment in Abu Dhabi, by enhancing the confidence of real estate owners and tenants with an efficient litigation mechanism,” Al Abri added.

“These lease contracts guarantee promptness in reverting the rights to their due owners and save a lot of time and effort,” Al Abri noted.

This measure is likely to reduce the number of rental disputes and to regulate the rental system in the emirate. Registered contracts with the status of executory instruments shall allow the settlement within two days to three weeks maximum, and encourage litigants to have recourse to this mechanism.

The decision allows an interim order to be submitted before the summary matters judge in the Rental Dispute Settlement Committees, in case of claiming the value of water or electricity consumption or refunding the guarantee deposit amount after the expiry of the lease period. A payment order will be issued on the basis of a petition submitted by the lessor or the lessee, and the same is appealable within 15 days.

In case of sub-lease, or if the property is subject to any damage or if there are changes in the property itself or in the nature of the commercial activity, the decision also permits a landlord to revert directly to the competent judge at the Rental Committee. The order shall be issued on the day following the submission of the petition at the latest.

The decision will come into force two weeks after the date of issuance, September 27.

The measure is likely to reduce rental disputes and to regulate the rental system in the emirate, encouraging litigants to have recourse to this mechanism.