Article 1
In the application of the provisions of this Decision, the following words and phrases shall have the meanings corresponding thereto unless otherwise indicated in the context:
- Emirate: The Emirate of Abu Dhabi
- Department: The Department of Municipal Affairs.
- Concerned Municipality: The Municipality of Abu Dhabi City, Al Ain City, Western Region or any municipality which may be established in the Emirate in the future.
- Competent Entities: Governmental Departments and competent entities concerned with delivery services such as gas, electricity and telecommunications and every entity with an activity related to real estate’s that are subject to the provisions of this Decision.
- Competent Committees: Rental Disputes Settlement Committee, Appeal Committee and Cassation Committee formed pursuant to Law No. 20 of 2006 concerning lease of premises and the organisation of the relationship between landlords and tenants in the Emirate of Abu Dhabi and its amendments.
- Lease Contract: The contract whose duration does not exceed four years and concluded pursuant to the provisions of the aforesaid Law no. 20 of 2006.
- Register of Lease Contracts: The register prepared by the Concerned Municipality pursuant to the provisions of Article 2 of this Decision.
- Landlord: The owner of the real estate or his legal representative.
- Tenant: Every natural or legal person bound by a lease contract with the landlord.
Article 2
The Concerned Municipality shall establish and maintain a record called “The Lease Contracts Register” which consists of a set of especially prepared sheets whether in hand writing or electronically, and contain data concerning the leased real estate, landlord, tenant, lease contract and any other data specified by the Department.
Article 3
The concerned Municipality shall perform the following:
- 1- Prepare a unified form for the Lease Contract.
- 2- Form an administrative body of the qualified personnel for the registration of Lease Contracts.
- 3- Provide an automated system for the registration of Lease Contracts and establish a database of all real estates designated for rent, their owners and tenants.
- 4- Coordinate with all Competent Entities to link them with the automated system for the registration of Lease Contracts.
Article 4
1- All Lease Contracts existing at the time of effectiveness of the provisions of this Decision or concluded after its effectiveness shall be registered in the Lease Contracts Register. Any amendment to such contracts after registration shall also be indicated in the same register.
2- Only Lease Contracts registered pursuant to the provisions of this Decision shall be considered by the Competent Entities. Any transaction requiring a Lease Contract shall be suspended and will not be accepted unless the contract is registered with the Concerned Municipality.
3- Should the landlord be in violation of any provision of this Decision for a particular real estate, the Concerned Municipality may suspend the transactions of the landlord which relate to the registration of new Lease Contract of the said real estate.
Article 5
All landlords shall register the data of their real estates and all valid Lease Contracts concluded before or after the issuance of this Decision. They must also register Lease Contracts upon their renewal or any amendment therein at the Concerned Municipality. They shall also submit all the required documents within six months from the effectiveness date of this Decision, pursuant to a work plan as determined by the head of the Department who may extend this period, if necessary, otherwise the Concerned Municipality shall conduct this transaction and charge the landlord all administrative fees and expenses.
Article 6
– If non-registration of Lease Contract or amendments thereto is due to the landlord, the tenant shall have recourse to the Competent Committees to request the issuance of a judgment stating the validity of the signature on the Lease Contract and register the same with the Competent Municipality.
– The landlord shall bear registration fees.
The tenant may apply to the Competent Committees to take a temporary action until signature’s validity suit is decided.
Article 7
– The General Manager of the Concerned Municipality shall issue a Decision concerning the formation of a committee responsible for the hearing of exceptional cases arising from the application of the provisions of this Decision provided that the committee’s recommendations are approved by the General Manager.
– The Concerned Municipality may coordinate with the Competent Entities concerning the application of the provisions of this Decision.
Article 8
– The Concerned Municipality shall collect[2] the fees of implementing the provisions of this Decision in accordance with the attached schedule.
– Valid Lease Contracts concluded prior to the issuance of this Decision shall be exempted from registration fees until they are renewed.
Article 8
The provisions of a new article were added under No. “8 Bis” by virtue of Article 1 of Abu Dhabi Executive Council Decision No. 13/2016 dated 25/2/2016, then they were implicitly amended by virtue of Article 4 of Abu Dhabi Executive Council Decision No. 49/2018 dated 27/05/2018 (which was abrogated in Article 10 of Abu Dhabi Executive Council Decision No. 13/2016), to read as follows:
– An annual municipal fee shall be collected from the tenant in exchange for the fees for authenticating and registering rental contracts, with a minimum of AED (450), according to the following:
- 5% of the lease contract value.
- 2.5% to 10% of the lease contract value for a rented residential villa built on a residential land as a grant, provided that the Executive Committee determines the standards and rate of applicable fees.
– The Department of Energy shall collect the fee referred to in the preceding clause and deposit the amounts in the government budget for the benefit of the Municipality, to be divided over 12 months or the number of months agreed upon in the contract, and added to the monthly bill for water and electricity.
– Citizens of the State shall be exempted from paying the fee mentioned in this article with respect to residential lease contracts for properties rented by them.
Article 9
The head of the Department shall issue the Decisions necessary to implement the provisions of this Decision including the registration procedures to be followed and the necessary data for the same.
