Dubai real estate: Eviction notices can now be transferred with property sale

Previously, new owners were required to issue a fresh 12-month eviction notice even if one had already been served. This new interpretation means the eviction notice is now attached to the property rather than the individual landlord.

“Law No. 26 of 2007, as amended by Law No. 33 of 2008 has witnessed a shift in interpretation and has sparked a debate over the effects of eviction notices,” said Mahmoud Kreidie, lawyer at Dubai-based law firm BSA.

“A pivotal development in the UAE’s legal framework is the transferability of eviction notices in the event of a change in property ownership. Traditionally, new property owners were mandated to apply for a new 12-month eviction notice, even if the tenant had already been served a notice by the previous owners,” he explained.

However, a recent court decision noted by the Dubai Rental Dispute Centre (RDC) in the late summer of 2023 has changed this practice. Evictions notices are now considered transferrable, providing a level of stability in the emirate’s overall real estate market.

How do eviction notices work in Dubai?

The law states that landlords must give their tenants a minimum of 12-month notice to vacate the property at any period of the tenancy contract. This must be done through official channels such as the notary public or registered mail to stand as legal proof.

Property owners must also provide a valid reason to terminate a tenancy agreement. Landlords can only legally evict tenants who:

• Refuse to pay the rents or part of it within a 30 days’ notice of payment served by the landlord
• Sublease the property or part of it without the landlord’s consent
• Are in danger of collapse supported by a technical report
• Use the property for illegal purposes or allows others to do so
• Use the property for purposes other than those specified for leasing
• Make alterations or changes to the property or allows others to do so that endangers the safety of the property
• Fail to follow the tenancy rules and regulations within 30 days of being notified by the landlord

Or if the landlord:

• Requires the property for personal use – this prohibits landlords from renting out the property for 2 years
• Wants to demolish or reconstruct the property
• Needs to make necessary maintenance or renovation on the property that cannot be carried out while the tenant is residing there
• Wishes to sell the property

Authorities have established guidelines to protect tenants from unscrupulous practices while also supporting investors. A landlord can only evict a tenant for specific legal reasons like construction work or personal use, with proper 12-month advance notice through an official notary.

“The recent legal shift in the UAE regarding the transferability of eviction notices reflects a nuanced approach aimed at balancing the interests of both landlords and tenants,” he said.

This provides more stability for all parties. It allows investors to rely on the notice to dispose of the property if needed. At the same time, tenants are still protected and cannot be arbitrarily evicted.

The decision strikes a balance between the interests of property owners and renters in Dubai’s booming real estate market. Rents have been soaring, leading to disputes between landlords and tenants. Going forward, more Dubai residents are choosing to buy rather than rent to avoid conflicts with landlords.

“Tenants should be aware of their right to contest eviction on valid legal grounds, ensuring due process is followed,” he said.

“[They] have specific legal avenues to contest eviction notices.”

However, challenging an eviction requires careful consideration of the law. If a tenant believes they have been served an unjust or invalid eviction notice, then they can seek out legal advice to protect themselves.

“Understanding the intricacies of the notice served, its adherence to legal procedures, and potential breaches can be crucial in mounting a successful defence. The RDC plays a pivotal role in resolving such disputes, offering a forum for tenants to present their case and seek a fair resolution,” added Kreidie.

“The law is dynamic, and interpretations may evolve over time.”