His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, has issued Law No. (5) of 2024 on Property Leasing in the Emirate of Sharjah.

The provisions of this law apply to properties leased for residential, commercial, industrial, or professional purposes in the Emirate of Sharjah. The following are exempt from the application of this law:

1- Agricultural land.
2- Properties granted by the emirate's government for residential purposes unless they are owned.
3- Properties provided by an employer for the housing of their employees without charging rent; this exemption does not apply to the leasing relationship that arises between the employer and the property lessor.
4- Properties belonging to hotel or tourism establishments leased solely to their guests.
5- Properties located within the free zones of the emirate, which have special committees or judicial bodies responsible for resolving rental disputes that arise within their boundaries.
6- Properties and contracts designated by a decision from Sharjah Executive Council.
7- According to the law, the parties to the rental relationship are required to conclude a lease agreement in writing or electronically, using the approved forms issued by the Executive Council of the Emirate of Sharjah. The executive regulations of this law will specify the data and conditions that must be included in this contract .

The law stipulates the certification of lease contracts as follows:

1- The landlord is required to certify the lease contract or any renewal of its duration and to pay the applicable fees to the municipality or the authorized entities within 15 days from the date of its drafting.
2- If the landlord refuses to certify the lease contract within the timeframe specified in paragraph 1 of this article, the tenant must request that the emergency judge at the center compel the landlord to certify it.
3- In the event that the lease contract is not certified by the municipality or the authorized entities, an administrative fine will be imposed on the landlord, as determined by the executive regulations of this law, in addition to the applicable certification fees.
4- The municipality may request that the emergency judge at the center compel the landlord to certify the lease contract and pay the fees and fines due at any time.
5- Except for the center, government entities in the emirate shall refuse to accept any unverified lease contract in accordance with the provisions of this law and its executive regulations in any transaction or service they provide.

According to the law, either party in the rental relationship, in the absence of a certified lease contract, may file a claim with the Rental Disputes Center in the Emirate of Sharjah to establish the rental relationship and its resulting effects using all forms of evidence provided for in the applicable legislation. The landlord will be required to pay the certification fees for the lease contract after its establishment.

The law specifies the obligations of the landlord, which include:

1- Delivering the leased property and its appurtenances to the tenant in a condition suitable for the intended use, without any hindrance to its enjoyment throughout the lease term, as agreed upon.
2- Carrying out necessary maintenance on the leased property unless otherwise agreed by the parties to the lease contract.
3- Not making changes to the leased property that would prevent or diminish its enjoyment without written permission from the tenant.
4- Granting the tenant the necessary approvals to present to the relevant authorities in the emirate if they wish to carry out interior design work in the leased property that aligns with its designated purpose or any other work that requires such approvals, provided that these works do not affect the structural integrity of the leased property or the building in which it is located.
5- Not interfering personally or through others with the tenant in a manner intended to disturb them or pressure them to vacate the leased property, or depriving them of full enjoyment of its appurtenances, or cutting off or disconnecting services to it or to the property in which it is located.
6- Returning any financial guarantees previously provided by the tenant upon the termination of the rental relationship unless they have been wholly or partially deducted for damages caused by the tenant to the leased property that do not fall under normal use.
Without prejudice to the tenant's right to request termination or a reduction in rent proportional to the decrease in enjoyment, the tenant may resort to the emergency judge at the center to compel the landlord in the event of a breach of any of the obligations stipulated in Article (8) of this law after notifying the landlord or if contact cannot be established. If the landlord fails to carry out the necessary maintenance, the tenant may conduct this maintenance at their own expense, with the right to claim a deduction for the costs incurred for the essential maintenance from the rent.

The law specifies the obligations of the tenant as follows:

1- Paying the rent on the due dates or as agreed upon in writing.
2- Using the leased property as agreed in the lease contract.
3- Not making any changes or modifications to the leased property without obtaining written permission from the landlord and the necessary licenses from the relevant authorities.
4- Leaving any plantings, constructions, or improvements made to the leased property after the lease term ends, which would cause damage if removed, unless otherwise agreed by the parties to the lease contract.
5- Maintaining the leased property and conducting regular maintenance unless otherwise agreed by the parties to the lease contract, and allowing the landlord to carry out necessary maintenance as required.
6- Paying for the consumption of services and any damages caused to the leased property, as well as any other fees legally required to be paid, from the date of receiving the leased property until the date of handing it back to the landlord. In no case may the landlord be charged any fees or expenses of any kind or to any party that the tenant is obligated to pay unless otherwise agreed by the parties to the lease contract.

Without prejudice to the landlord's right to request termination or compensation for damages incurred to the leased property by the tenant as a result of modifications or changes that cannot be removed or restored to their previous condition, the landlord may resort to the emergency judge at the center to compel the tenant in the event of a breach of any of the obligations stipulated in Article (10) of this law after notifying the tenant or if contact cannot be established.

The law stipulates that the tenant may not waive, with or without consideration, all or part of the lease contract and the rights arising therefrom, and the tenant may re-lease all or part of the leased property in accordance with the terms and conditions specified in the executive regulations of the present law.

The law addresses the reasons for eviction as follows:

1. The landlord may not request the tenant to vacate the leased property before the expiry of (3) years from the date of commencement of the lease relationship for residential use and (5) years for commercial, industrial or professional use, unless one of the following reasons arise:
A. If the tenant fails to pay the rent or any instalment thereof within (15) days from the date it is due.
B. The tenant violates any of his legal or contractual obligations and does not remove the violation within (30) days from the date of notification by the landlord.
C. If the tenant assigns all or part of the lease contract or re-rents all or part of the leased property in violation of the provisions of the present law and its executive regulations, without prejudice to the provisions of the transfer of ownership of the commercial premises stipulated by law.
D. If the tenant uses the leased property or allows others to use it for a purpose other than that specified in the lease contract or in violation of its terms or uses it for purposes that conflict with public order or public morals.
E. If the landlord wishes to demolish the leased property or rebuild it or carry out comprehensive maintenance that prevents the tenant from being present in the property in accordance with the conditions specified in the executive regulations of this law.
F. If the landlord wishes to occupy the leased property for the purpose of housing for himself or one of his first-degree adult relatives, provided that:
A. He does not own another property suitable for housing in the area of the municipality's jurisdiction.
B. Notify the tenant of the eviction request within a period of not less than three months from the date set for eviction.
C. The landlord himself or one of his first-degree adult relatives shall occupy the leased property within two months after it has been vacated by the tenant for a period of one year without interruption.
2. If the landlord does not comply with the conditions set forth in clauses (e) and (f) of this article, the tenant shall have the right to claim compensation for the damages incurred by the eviction before the centre.

The law stipulates that if the landlord refuses to receive the rent or any instalment thereof or does not designate a place where payment will take place, the tenant may deposit the agreed-upon rent or instalment with the centre in accordance with the controls specified in the executive regulations of this law. If the landlord and the tenant do not agree on the method and date of payment of the rent or it is impossible to prove the agreement, the payment method shall be in four equal instalments divided over the term of the lease contract.

According to the law, the lessor may not increase the agreed upon rent before the expiry of (3) years from the date of the start of the rental relationship, unless the parties to the rental contract agree otherwise. If the lessee accepts an increase in the rent before the expiry of the three years, the lessor may not increase it again until two years have passed from the date of the increase. The increase in the rent after the expiry of the periods referred to in Clause (1) of this article shall be at the value of the fair rent. The executive regulations of this law shall specify the controls for the fair rent and how to calculate it. The Council may, by a decision, amend the periods specified in Clause (1) of this article.

The law specified the termination of the rental relationship as follows:

1. The rental relationship shall not end and the lessee shall not be harmed by the transfer of ownership of the leased property to a new owner, regardless of the method or reason for its transfer.
2. The new lessor may not request the tenant to vacate the leased property or increase its rent except in accordance with the provisions of this law and its executive regulations.
3. The new lessor shall replace the previous lessor in all rights and obligations of the lease contract.

According to the law, the rental relationship does not end with the death of one of the parties to the lease contract unless the deceased is the tenant and his heirs request the termination of the lease contract. In this case, the termination shall not take place until after the expiry of a period of (30) days from the date of notification to the landlord or the expiry of the contract, whichever comes first. If the lease contract is for a fixed term, the tenant may request its termination before the expiry of its term, if he proves the existence of exceptional and unexpected circumstances that would make the implementation of his obligations burdensome. If the landlord rejects the tenant's request to terminate the lease contract before the expiry of its term, the tenant may resort to the centre, and the centre has the authority to assess the tenant's request for termination. The tenant is obligated to pay compensation to the landlord at a rate of (30%) as a minimum of the rent for the remaining term of the lease contract, unless the two parties agree otherwise. The law also includes a number of articles related to the executive regulations, fees, fines, executive decisions, cancellation, enforcement and publication.

Establishment and organization of the Rental Disputes Center 

His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, has issued Law No. (6) of 2024 on the establishment and organization of the Rental Disputes Center (RDC) in the Emirate of Sharjah.

According to the law, a judicial center named "Rental Disputes Center in the Emirate of Sharjah" will be established, possessing legal personality and the necessary legal capacity to achieve its goals and exercise its competencies. This center will be affiliated with the Sharjah Municipality, and its main headquarters will be in the city of Sharjah. A decision from the council may allow for the establishment of branches in other cities and regions of the emirate.

The objectives of the law include the following:
1-Establishing a specialized judicial system to address disputes arising from rental relationships in the emirate.
2-Developing and expediting procedures for resolving rental disputes to achieve swift justice and high-quality rulings at all stages of litigation in the center.
3-Contributing to the sustainable development of the real estate sector and supporting the economy in the emirate.

According to the law, the center is tasked with the following competencies to achieve its objectives:
1- Formulating public policies and proposing the necessary legislation to develop the center's operations and regulate rental relationships in the emirate.
2- Reviewing and resolving disputes arising from rental relationships and their effects, including bounced checks, compensation requests, and related real estate mediation in the emirate or in free zones, except for those with special committees or judicial bodies responsible for resolving rental disputes within their boundaries.
3- Issuing and enforcing decisions and rulings issued by the center and adjudicating requests for urgent and interim measures.
4-Any other competencies assigned by the ruler or the Executive Council of the Emirate of Sharjah.

The law stipulates that the center will consist of the following departments:
1- Primary Courts.
2- Appellate Courts.
3- Enforcement Department.

According to the law, the leadership and membership of the judicial departments and the judicial inspection at the center will be held by judges seconded from the Ministry of Justice at the request of the council. A judge will also be appointed by the Ministry of Justice at the council's request to oversee the center, and this judge will be accountable to the ruler and the council for performing their duties and exercising their administrative powers. Specifically, the judge will have the following responsibilities:
1- Formulating the center's public policies and issuing the necessary decisions for their implementation in coordination with the director.
2- Establishing primary and appellate courts, distributing cases among them, and determining the number and timing of sessions according to the approved mechanism.
3- Supervising the work of the primary and appellate courts to ensure the administration of justice without compromising judicial independence.
4- Overseeing the implementation of rulings and decisions issued by the center.
5- Proposing legislation, regulations, and fees related to the operations of the center and presenting them to the council for appropriate decisions.
6- Issuing decisions related to the affairs of the judges at the center.
7- Entering into agreements, memorandums of understanding, and partnerships after their approval by the council.
8- Representing the center before all federal, local, and private governmental entities.
9- Any other tasks assigned by the ruler or the council.

The law also stipulates that the Sharjah Municipality shall undertake administrative tasks and provide institutional support (administrative, financial, and technical) to the center, with particular authority to exercise the following competencies:
1- Appointing the director.
2- Managing the center and developing its operational systems to ensure its progress and optimal use of resources.
3- Implementing matters related to agreements, memorandums of understanding, and partnerships entered into by the center.
4- Providing the center with human resources, training them, and supplying the necessary public services and technical programs and systems to enable the center to achieve its goals and perform its functions.
5- Any other tasks or responsibilities assigned by the ruler or the council.

The law specifies the roles and responsibilities of the center's director as follows:
1- Administrative supervision of the staff and distributing tasks according to their specialties within the center's departments and administrations.
2- Coordinating with all federal, local, and private governmental entities regarding the center's operations and competencies.
3- Coordinating with the supervisor regarding administrative matters concerning the judges, receiving instructions, and disseminating them within the center.
4- Submitting proposals and recommendations aimed at developing systems and improving the efficiency of the center's operations.
5- Preparing periodic reports and statistics on the center's workflow and presenting them to the supervisor and the General Director of the municipality for necessary action.
6- Any other tasks or competencies assigned by the supervisor or the General Director of the Sharjah Municipality.

According to the law, court sessions at the center shall be public unless the presiding judge decides on their own accord or at the request of one of the parties to conduct them in private. The president of the session will manage and regulate the proceedings. Court sessions are valid with the attendance of all their members, and a record will be prepared to document the judgment on the specified date of issuance, indicating the names of the judges present during the deposit. This record will be signed electronically or in writing by the head of the department or the judge, as appropriate. The language of litigation and communication in the center will be Arabic, and the competent judge must hear the statements of the parties or witnesses who do not understand Arabic through a translator, who must take an oath in accordance with the applicable legislation.

According to the law, the department may not postpone a case more than once for a single reason attributable to one of the parties, except for an emergency reason after referral, such as the death of one of the parties, loss of legal capacity, intervention in the case by a third party, or allegations of forgery, or submission of evidence of a related criminal case, or a request by one of the parties to present evidence of reconciliation, provided that the postponement does not exceed two weeks. In all cases, the department must issue a judgment concluding the dispute within a period not exceeding 30 days, which may be extended for additional periods but not exceeding 100 days from the date of the first hearing of the case before it. The parties must attend the litigation sessions in person or through a representative, whether a lawyer, a relative, or an in-law up to the fourth degree, or an employee if the party is a private legal entity, with the latter’s attendance based on a power of attorney issued by their legal representative, specifying their job title and certified by a notary.

The decree stipulates the establishment of an office in the center called the "Litigation Management Office," formed by a responsible person and a number of specialized staff. The secretary of each department may also serve as the manager of the Litigation Management Office under the supervision of the head of the judicial department or a designee. The Litigation Management Office is tasked with preparing and managing the case prior to the trial stage, including registration, notification, exchanging notes and documents, and expert reports between the parties. The procedures for registering and preparing cases and scheduling sessions will be organized by a decision from the supervisor.

According to the law, primary departments will be established in the center, each consisting of a single judge, with their formation issued by a decision from the supervisor. The primary departments are responsible for the following:
1- Resolving all disputes arising from rental relationships referred to them by the Litigation Management Office, including considering requests for urgent and interim measures submitted by either party to the rental relationship in connection with the substantive case.
2-The supervisor may designate one or more departments within the primary departments to consider a specific type of rental dispute based on the nature of the case or the location of the leased property or its intended use.

According to the law, judgments and decisions of the primary courts are final and cannot be appealed in any way in cases whose value does not exceed (AED 100,000) one hundred thousand dirhams. It is permissible to appeal judgments issued in disputes whose value does not exceed (AED 100,000) one hundred thousand dirhams, if one of the following cases is met:
1. If the judgment or decision issued to vacate the rented property.
2. If the judgment was issued in violation of the rules of jurisdiction.
3. If the judgment ruled on something that the parties did not request or more than what they requested.
4. If the judgment was issued against a natural or legal person who was not properly represented in the case, or there is a defect in the announcement.
5. If the judgment was based on papers that were ruled to be forged or based on the testimony of a witness who was convicted of perjury.
6. If one of the parties to the case submitted a document that they were unable to submit during the consideration of the case and that would change the judgment in the case.

According to the law, if the court considering the dispute neglects to rule on some of the substantive requests, it must, upon the request of one of the interested parties, consider the request and issue a decision or judgment on the neglected requests, as the case may be, after notifying the opponent thereof. The decision or judgment shall be subject to the appeal rules applicable to the original decision or judgment.

According to the law, appellate courts shall be established in the centre, each consisting of three judges, and a decision shall be issued by the supervisor to form them. The appellate courts shall be competent to:
1. Rule on appeals submitted against decisions and judgments issued by the primary courts and the Enforcement Department, taking into account the text of Article (21) of this law.
2. The judgments of the appellate courts shall be final and not subject to appeal except by way of a petition for reconsideration.

According to the law, the deadline for appealing decisions and rulings issued by the primary courts shall be (15) fifteen days starting from the day following the date of the session in which the ruling was issued if it was in person, and from the date of announcing the ruling if it was in person. The appellate circuit may revoke the decision issued by it or its final ruling on its own initiative or upon the request of one of the parties in any of the following cases:
1. If the decision or ruling was marred by a procedural error made by the court or its auxiliary bodies that affected the result reached by its decision or ruling.
2. If the decision or ruling was based on a repealed law, and the application of the correct law would change the opinion in the case.

The request for recourse shall be submitted by the person against whom the decision or judgment was issued to the supervisor, accompanied by a guarantee of (2000) dirhams, or by the head of the department that issued the judgment in a report to the supervisor, who shall refer it to the body formed in accordance with Clause No. (3) of the present Article. The request for recourse or the report of the head of the department stipulated in Clause No. (2) of the present Article shall be considered before a body formed of a president and two judges appointed by him from among the judges who participated in issuing the judgment. The body, meeting in the consultation chamber, shall issue a reasoned decision by majority on the request for recourse, and the guarantee amount shall be confiscated by force of law if the request is rejected. If the request is accepted, it shall be referred to another department to consider the appeal again and decide on it, with the guarantee amount returned to the applicant. In all cases, the referral or submission of a request for recourse shall be made only once, and it may not be referred or submitted after the lapse of one year from the date of issuance of the decision or judgment.

According to the law, opponents may request a review of final decisions or judgments in the following cases:
1. If the opponent committed fraud that would have affected the decision or judgment.
2. If the decision or judgment was based on documents that were acknowledged after its issuance to be forged or were ruled to be forged, or were based on the testimony of a witness that was ruled to be false after its issuance.
3. If the petitioner obtained conclusive documents in the case after the issuance of the decision or judgment that their opponent had prevented from being presented.
4. If the decision or judgment ruled on something that the opponents did not request or on more than they requested.
5. If the operative part of the decision or judgment contradicts each other.
6. For those who consider the decision or judgment issued in the case as evidence against them and who were not involved or intervened in it, provided that fraud, collusion, or gross negligence of the person who represented them is proven.
7. If the decision or judgment was issued against a natural or legal person who was not properly represented in the case.

The law also stipulates that the supervisor may appeal, by way of a petition for reconsideration, on their own initiative or upon the request of one of the parties, against the final decisions or judgments, regardless of the circuit that issued them, if the judgment is based on a violation of the law or an error in its application or interpretation, in the following cases:
A. Decisions or judgments that the law does not permit the parties to appeal.
B. Decisions or judgments, in which the parties missed the appeal deadline, waived the appeal, or filed an appeal that was ruled inadmissible.

2. The appeal shall be submitted to the competent court in a document signed by the supervisor within one year from the date of issuance of the decision or judgment.

The law has set the period for filing a petition at 30 days, and it does not begin in the cases stipulated in clauses (1, 2, 3) of Article (23) of this law except from the day on which the fraud appeared, or on which the perpetrator admitted to the forgery or a ruling was issued proving it, or on which the false witness was sentenced, or on which the withheld paper appeared. The period begins in the case stipulated in clause (6) of the aforementioned article from the day on which the fraud, collusion or gross negligence appeared, and in clause (7) of the aforementioned article from the day on which the ruling is announced to the convicted person or his legal representative. According to the law, the petition is filed in a document that is deposited with the Case Management Office in accordance with the usual procedures for filing a lawsuit. The circuit that considers the petition may be composed of the same judges who issued the ruling. The document must include a statement of the ruling in which the petition is being filed, its date, and the reasons for the petition, otherwise it will be invalid. The petition will not be accepted if its petition is not accompanied by evidence of a deposit of (1000) dirhams, and the deposit will be confiscated if the petition is rejected, or declared inadmissible. The law also stipulates that the judicial court, after hearing the opponents first, shall decide on the admissibility of the petition. If it accepts it, it shall set a session for pleading on the subject without the need for a new announcement. However, it may rule on the acceptance of the petition and on the subject in one ruling if the opponents have submitted their requests on the subject before it. The court shall only reconsider the requests addressed in the petition. The filing or acceptance of the petition shall not result in the suspension of the execution of the ruling. However, the judicial court that is considering the petition may order the suspension of execution whenever requested and it is feared that the execution will cause serious harm that is difficult to remedy. When the circuit orders the suspension of execution, it may require the provision of a guarantee or order what it deems sufficient to preserve the right of the petitioner. According to the law, the Centre's Execution Department is responsible for implementing the decisions, rulings and orders issued by the Centre under the supervision of the execution judges and with the assistance of the execution delegates, based on the request of the concerned parties. It is also responsible for implementing the executive instrument, settling temporary execution disputes and issuing decisions and rulings related to that. The execution procedures and the mechanism for grievance and appeal against executive decisions are regulated by a decision of the Council. The supervisor shall assign one or more judges to rule temporarily on urgent matters that are feared to be time-consuming, without prejudice to the original right, and to issue orders on petitions.

According to the law, the courts formed in accordance with the provisions of this law shall decide on rental disputes, petitions, urgent matters and appeals submitted to them based on the legislation in force in the emirate. In the event that there is no text in this law, the circuits formed shall decide on rental disputes and appeals submitted based on:
1. Federal legislation.
2. Provisions of Islamic Sharia.
3. Custom, unless it is contrary to the laws, public order or public morals.
4. Principles of natural justice and rules of equity.

The law also included a number of articles related to final provisions, exemption from fees, executive decisions, enforcement and publication.