In our previous article published on October 23, 2023, we explored the involved rules governing landlord-tenant relationships in Dubai's dynamic real estate market. Specifically, we delved into the 12-month eviction notice and the question of its transferability to new property owners.
Since then, we've had the opportunity to gather further insights, including a visit to the judicial committee at the Appeal Court and a meeting with the secretary of the judge at the Rental Dispute Center (RDC), who issued a significant judgment related to this matter.
Here, we provide you with the latest updates and clarifications.
The Tenancy Law Overview
As a quick recap, Dubai's real estate sector operates within a legal framework defined by Law No. 26 of 2007, with subsequent amendments introduced in Law No. 33 of 2008, commonly referred to as The Tenancy Law.
These laws set the stage for the relationship between landlords and tenants, outlining various scenarios under which landlords can request eviction before or upon the lease's expiry.
One of the key issues we discussed was the transferability of eviction notices when a property changes ownership, particularly in cases where a landlord initiates the sale of a property before the 12-month eviction notice period concludes.
Our recent visit to the judicial committee at the Appeal Court on November 21 2023, shed further light on this topic. The Appeal Court had issued a judgment that has significant implications for property owners, buyers, and tenants alike.
Legal Complexities and Tenant Compensation: Impact of Changing Intentions
The judgment concluded that the new property owner can indeed benefit from the eviction notice against the tenant. However, there is a crucial condition to this benefit: the new owner has to maintain the same intention as the previous owner, which is primarily to sell the property (if the original intention was eviction due to selling it).
This interpretation reinforces the principle that the intent behind the eviction notice must remain consistent throughout the ownership transition. If the new property owner deviates from this intent—for instance, by using the property for personal purposes or leasing it in the market—it can lead to legal complications.
In such cases, compensation claims by the tenant may come into play, and the eviction notice could be subject to invalidation at the Rental Dispute Center (RDC). Indeed, the RDC's recent decision on November 14, 2023, dismissed the eviction case brought by the new owner, as their intentions differed from those of the previous owner/seller.
Despite this significant clarification from the Appeal Court, it is essential to understand that the application of this principle may vary from case to case. Rulings at the Rental Dispute Center (RDC) are not consistently applied as precedents for future decisions, meaning that judgments and guiding principles in similar cases may differ.
Importance of Fresh 12-Month Eviction Notice
On the other hand, it's crucial to educate new buyers about the significance of commencing a fresh 12-month eviction notice in strict compliance with legal requirements when their intentions notably differ from the previous owner's.
However, if their intention aligns with the previous owner's plan to sell the property, they can capitalize on the prior eviction notice and cite the recent court ruling as supporting evidence in their case before the Rental Dispute Center (RDC).
Stay Informed with fäm Conveyancing
In conclusion, our follow-up article serves to provide you with the latest insights and clarifications on the transferability of eviction notices in Dubai's real estate market.
For further information or to address any inquiries related to our conveyancing services, please reach out to our Sales Progression Officers/Conveyancers team at 00971588229107 or 00971521289592, or email us at [email protected] or [email protected].
You can also explore our comprehensive services on our official fäm Conveyancing website. We are committed to keeping you informed and empowered to navigate Dubai's real estate landscape.