The newly enacted Leasing Law introduces areas of protection and assurance to lessors and lessees entering into leases at properties based in the dynamic financial ecosystem of the DIFC.
The law will address specific factors relating to real property within the DIFC, including the requirement to provide an appropriate regulatory environment aligned with common law jurisdictions and onshore Dubai practices due to the DIFC’s status as an offshore jurisdiction within the UAE 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 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 at the property following the termination of the lease or liquidation of the lessee.
Certainly, this step will continue to level up legal and regulatory framework and prioritise ease of doing business in the DIFC while asserting the DIFC as a stable and enabling environment from which to reside and prosper.