DIFC announced for public consultation proposed new Leasing Law and RegulationsNews31 Mar 2019 11:53 am
Dubai International Financial Centre (DIFC), the leading international financial hub in the Middle East, Africa and South Asia (MEASA) region, has today proposed the enactment of new legislation to enhance the current real property regime in the DIFC and has proposed a new Leasing Law and Regulations for this purpose. The new Leasing Law and regulations will introduce areas of protection and assurance to lessors and lessees entering into leases of DIFC properties and further aligns the DIFC with international best practice in this regard. It will also take into account specific factors relating to real property within the DIFC and the need to provide an appropriate regulatory environment which aligns with common law jurisdictions but also mirrors onshore Dubai practice given it’s unique location of being an offshore jurisdiction within the United Arab Emirates, by:
- introducing general requirements for leases and general obligations for lessees and lessors;
- introducing a tenancy deposit scheme for residential leases to be administered by the Registrar of Real Property;
- requiring the production of condition reports in the format required by the Leasing Law by residential lessors;
- imposing a maximum limit on security deposits collected by residential lessors and further specific provisions for residential leases; and
- introducing clearer provisions relating to the termination of leases and the disposal of goods and chattels remaining at the property following termination or liquidation of the lessee.
The new Leasing Law and Regulations has been posted for a 30 day public consultation period with the deadline for providing comments ending on the 1st of May 2019.
The consultation papers and legislative proposals can be accessed by visiting: www.difc.ae/laws-regulations/consultation-papers