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Discussion Starter · #1 ·
Hello all

I just bought a property here to live in, this got transferred to me last week and i will get the title deeds next week.

There is currently a tenant in the property. In January 2013 the previous landlord and the tenants company signed a new tenancy contract. This clearly states at the top of the contract that it is "non renewable" and a "1 year contract only" and this expires in January 2014, which is when i am planning on moving in.

The relocation agency that represents the tenants company is now say that I must give 12 months notice and the tenant will have the right to extend his contract should he wish.

The contract was clearly signed this year by both both parties (Tenants company and previous landlord) so surely this is valid and he must move out in January?

Let me know your thoughts

Thank you
 

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My understanding is that his company is correct. The issue is what landlords write on a contract versus what's the law. By law, you need to provide your tenant with a 12 month notice to evict him for any reason, including moving in yourself.

Here's the law:
2. Landlord may demand eviction of tenant upon expiry of tenancy contract limited
to the following cases:

a. If the owner wishes to demolish the property for reconstruction or to add
new constructions that prevent tenant from benefiting from the leased
property, provided that necessary licences are obtained.

b. If the property requires renovation or comprehensive maintenance which
cannot be executed while tenant is occupying the property, provided that a
technical report issued by Dubai Municipality or accredited by it is to be
submitted to this effect.

c. If the owner of the property wishes to recover the property for use by him
personally or by his next of kin of first degree provided that he proves that
he does not own a suitable alternative property for that purpose.

d. If the owner of the property wishes to sell the leased property.

And for the purpose of clause (2) of this Article, landlord must notify tenant with reasons for eviction at least twelve months prior to the determined date of eviction subject that such notice be sent through the Notary Public or by registered mail.
So regardless of what the tenancy contract says, it can not have conditions in it which are against the law - like in any country.

As far as I know, you'll need to serve your tenants a notice - if you give them a notice today, they will be able to sign a new contract on Jan 2014 and you can have them out by Jan 2015. Who ever advised you on this matter during the purchasing of your property, should have given you this information.

OR, you can negotiate with the tenant, maybe provide some sort of compensation and have them leave in Jan 2014?!

Good luck.
 

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Check with RERA. My friend just signed a non-renewable contract (it's her second year in the apartment) and RERA told her it's legal. Forgive me for saying, but you should have checked this when you were buying. Hopefully, it's not going to cause you a problem.
 

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BedouGirl beat me to it but i would suggest the same. check with RERA before you freak out.
 

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Discussion Starter · #6 ·
Thank you for all your replies, Unfortunately i was told throughout the process that this would be fine, however I have since found out that no one is sure!

I have called 3 different times to RERA today and each time they said it would be fine, however as above i have seen this law and a few other people have mentioned to me that it exists so a bit confused.....
 

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as far as I know, RERA is the authority on this and the place to settle disputes between landlords and tenants. if you have called them three times and each time been told that the tenancy agreement as signed will hold up then i'd say you're good. let the tenant know you've consulted with RERA and have been advised the contract stands as signed and that you intend to move in in January.

best of luck. please do keep us posted here.
 

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as far as I know, RERA is the authority on this and the place to settle disputes between landlords and tenants. if you have called them three times and each time been told that the tenancy agreement as signed will hold up then i'd say you're good. let the tenant know you've consulted with RERA and have been advised the contract stands as signed and that you intend to move in in January. best of luck. please do keep us posted here.
I agree with Sammylou. It's then up to the tenant to consult RERA. I would actually write a formal letter to the tenant with a copy of the previous contract attached and state, very nicely of course, that, in accordance with the expiry date of said contract, they are to vacate the property on x date. That gives them something to take to RERA and on which RERA will make their decision. Fact is, for them to bring a case against you, is quite expensive and, likely as not, they will lose and, therefore, lose the money they put down to bring the case to RERA for a ruling. At the end of the day if you think about it, technically speaking, their contract isn't valid anyway, as it's between them and the previous owner.

The way I see it, you bought the property in good faith, even though I still think you should have done your due diligence in this respect beforehand rather than taking the agent's word for it, and the tenant knew the situation because they signed that contract with that clause in the first place.
 

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Not sure if I agree with the above post completely.

The contract is valid with the new landlord as it's the new landlord's responsibility to do due diligence. When you purchase a property with an existing tenant, you take over the tenancy contract and the law applies to you as well.

I do agree though that you're 'in the clear' if you have called RERA over the phone but I still don't see how it's within the law. The best way to manage this would be to go visit RERA - thought I read in one of the threads mentioned above that the guys answering the RERA phones don't always know the answer.

OR, you could simply do as suggested above - send them an official eviction notice with the reason that you're moving in. Let them do the leg work and go to RERA to fight the case. Note though, IF they file a case, they will have to pay 3.5% of the rent value as fees. They can request to have this amount compensated by you if he wins the case. This will mean that IF you lose the case, you will have to reduce next year's rental value by 3.5%.

Might be worth going down to RERA, show them the contract and talk to someone in person.

Please keep us posted so we are all aware of the rules/laws.
 

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Not sure if I agree with the above post completely. The contract is valid with the new landlord as it's the new landlord's responsibility to do due diligence. When you purchase a property with an existing tenant, you take over the tenancy contract and the law applies to you as well. I do agree though that you're 'in the clear' if you have called RERA over the phone but I still don't see how it's within the law. The best way to manage this would be to go visit RERA - thought I read in one of the threads mentioned above that the guys answering the RERA phones don't always know the answer. OR, you could simply do as suggested above - send them an official eviction notice with the reason that you're moving in. Let them do the leg work and go to RERA to fight the case. Note though, IF they file a case, they will have to pay 3.5% of the rent value as fees. They can request to have this amount compensated by you if he wins the case. This will mean that IF you lose the case, you will have to reduce next year's rental value by 3.5%. Might be worth going down to RERA, show them the contract and talk to someone in person. Please keep us posted so we are all aware of the rules/laws.
The reason I said what I did about the contract is that, with all the properties we have rented for staff, in the event of a change of landlord due to a sale, a new contract was drawn up, either for the remaining period or for a further year. I cannot see how a contract in the previous landlord's name can stand. Having said that, that could work against the new owner as that may mean there may have to be a twelve-month notice period. OP should go to RERA in person with all the documents and take their advice and then turn it around and put the proverbial monkey on the tenant's back, writing them a letter to confirm they need to vacate and allow them the chance to comply or go to RERA.
 

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Discussion Starter · #11 ·
I do have a new tenancy contract, exactly the same as the previous owners, however the only thing different is that my name is added on. The agent told me to get this signed. Same end date etc.

Let's see. I will hear back from the tenants company on Mon/Tues so will let everyone know.

Thanks for all your comments - and i agree that i should have looked in more detail however i mistakenly trusted the agent too much

It as my first property here so will not make the same mistake again!
 

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This is being discussed in great detail elsewhere and from what I gather, there is no such thing as a 'non-renewable' tenancy contract - it's mostly a ploy used by LL's as an excuse to boot people out.

A 12 month notice eviction notice HAS to be delivered by registered mail - now RERA will give you different opinions on this and it depends who you speak to, some will say an acknowledged email will do, however in the actual tenancy laws it clearly states that eviction notices must be by registered post AND give a valid reason as to why the LL wants the tenant out. The previous LL, if he was selling the property should have done all of this by the book - which he clearly hasn't and you've been given bad advice.

I feel really sorry for your situation and I've now seen a few people in this position where they just can't get rid of tenants, to be able to live in their own property.

You need to actually go to RERA and speak to someone in person and get this sorted out, otherwise you could be handing over an eviction notice in 2014 and not have the tenant out for another year. As the new owner, you become the new LL and you have to honour their current tenancy contract.

It's a horrible situation that you've been put in and I really feel for you.
 

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I fully agree with W_man. The law states something different and a landlord cannot simply write in the tenancy contract that the lease is not renewable. He has to send 12 months notice through notary public and state a reason. I am pretty sure that if the tenant goes to RERA they will win the case against you.
I still dont get why people purchasing in this country do not do their homework and trust Sales agents??? That's simply nuts!!
 
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