Law No. 28 of 1976 regarding the Lease of Premises

Law No. 28 of 1976 regarding the Lease of Premises

After perusal of:

• The Constitutional Declaration.
• The Civil Law.
• Law No. 15 of 1951 Concerning Rent Control.
• Law No. 35 of 1952 Concerning Rent Regulation.
• Law No. 12 of 1961 Concerning Premises Rent, as amended by Law No. 34 of 1963.
• Law No. 116 of 1972 Regulating Urban Development.
• Law No. 38 of 1975 Regulating Municipalities.
• Law No. 39 of 1975 Regarding Municipalities.
• The Revolutionary Command Council Decree Regarding Premises Rent, issued on 27 Sha'ban 1389 AH, corresponding to 8 November 1969 AD.
• Based on the presentation by the Prime Minister and the agreement of this Council.

Issued the following law:

Article 1

The provisions of this law shall apply to non-vacant land, premises, and parts thereof, of various types intended for residential or other purposes, located within the approved city plans outlined in the schedule attached to this law. The Council of Ministers may, by decision, extend the application of all or some of the provisions of this law to other cities or regions.

Article 2

The lessor shall not demand eviction of the leased premises even upon the expiration of the agreed period except in one of the following cases:

• A. If the lessee fails to pay the due rent within thirty days from the date of notification thereof by an announcement served by an officer. Eviction shall not be ordered if the lessee pays the full rent due and the official expenses before the closure of the pleadings in the lawsuit before the court of first instance. If the lessee repeatedly fails to pay the rent as specified, eviction shall be ordered even if the lessee pays the rent after the expiration of the thirty-day period.
• B. If the lessee subleases the premises or assigns the lease to another without the express written permission of the owner.
• C. If the lessee uses or allows the use of the leased premises in a manner inconsistent with reasonable rental conditions or detrimental to the interests of the owner.
• D. If the lessee does not use the leased premises for serious use for a period exceeding ninety days and has another place of residence in the same city.
• E. If the premises are leased under a service contract and the contract is terminated.
• F. If it is proven that the leased premises have become unsafe or pose a threat to the safety of the occupants.
• G. If the owner intends to demolish the leased building for reconstruction, and if demolition does not commence within ninety days from the date of eviction or if construction does not commence immediately after demolition, the lessee has the right to return to occupy the premises in addition to claiming compensation from the lessor.
• H. If the lessor of residential premises needs to occupy the premises himself or have one of his children occupy them.

In this case, the lessor must notify the lessee of the eviction at the end of the term, and the notice may be by a registered letter accompanied by proof of receipt. The lessee shall be given a period of six months or the remaining period of the lease, whichever is longer. If the lessee objects or fails to respond within fifteen days to the notice, the lessor may bring the matter to court within the six-month period to obtain an eviction order, provided that the order shall not be executed until at least sixty days have elapsed from the date of the judgment if delivered in person or from the date of its announcement to the lessee or his place of residence if delivered in absentia. If the lessee accepts the eviction but fails to comply at the end of the specified period, the lessor may obtain a court order for his eviction from the leased premises. If the lessor does not occupy the premises within ninety days from the date of eviction or does not continue to occupy them for at least one year without acceptable excuse in both cases, the lessee may claim compensation for the eviction as well as request reoccupation of the premises.

The purchaser of the leased premises shall not be entitled to benefit from the provisions of this clause until at least one year has elapsed from the date of registration of the sale contract.

The annual rent for residential or office premises constructed during the year 1975 shall be determined based on a percentage of the value of the land attributable to the leased premises divided by twenty-five years, plus a percentage of the building costs attributable to the same premises divided by fifteen years, as detailed in the schedule attached to this law.

Article 4

The determination of the rent for residential or office premises existing at the issuance of this law or established thereafter shall be based on the rent determined for the same premises for the year 1975, in accordance with the provisions of Article 3, adjusted by adding or subtracting a percentage for each year specified by a decision of the Minister of Housing, taking into account the year in which the premises were or are constructed.

The Minister of Housing shall issue a decision specifying the mentioned percentage within sixty days from the effective date of this law for existing premises and during the month of January of each year for premises established thereafter.

Article 5

The provisions of Articles 3 and 4 of this law shall not apply to:

1. Premises not intended for residential or office use.
2. Premises for which rent has been determined by final decisions issued pursuant to the Rent Control Law No. 15 of 1951, or the Rent Regulation Law No. 35 of 1952, or Premises Rent Law No. 12 of 1961, or the Revolutionary Command Council Decree regarding Premises Rent issued on 27 Sha'ban 1389 AH, corresponding to 8 November 1969 AD.
3. Premises for which rent has been determined pursuant to the provisions of Article 4 or the first paragraph of Article 5 of the Revolutionary Command Council Decree regarding Premises Rent referred to herein.

In applying the provisions of paragraphs 2 and 3 of this article, the current agreed rent shall be the rent determined in accordance with the laws and decisions referred to in these paragraphs, and compliance with this rent shall remain effective without any amendment. The lessor and lessee shall have the right to appeal a decision of the Rent Determination Committee provided for in Article 6 before the Appeals Committee provided for in Article 8 to prove that the agreed rent has been previously determined in accordance with the provisions of the referred paragraphs.

The amount of rent shall be proven by all means of proof, regardless of the value of the dispute.

Article 6

Committees for determining rent in accordance with the provisions of Articles 3 and 4 of this law shall be formed, consisting of a chairman and two members, one of whom shall be at least an architect, civil engineer, or surveyor. The presence of all members is required for the validity of the committee's session, and its decisions shall be issued by a majority vote. The formation of committees, determination of their jurisdiction, and headquarters shall be by decision of the Minister of Municipalities.

Article 7

The committee shall be responsible for determining the rent upon request from the lessor or lessee. Upon completion of construction for use, the building owner must notify the committee within thirty days of the first lease agreement for any unit within the building or the date of initial use of any unit, in any form of usage. The notification period for existing premises shall be sixty days from the effective date of this law as published in the official gazette. The committee's decision shall apply from the effective date of this law for leased premises at that time and from the commencement of the lease agreement or use for premises established thereafter.

Article 8

Both the lessor and lessee may appeal against the decision of the Rent Determination Committee within sixty days from the date of its announcement to one of the Appeals Committees, chaired by one of the judges of the court of first instance in whose jurisdiction the premises are located, appointed annually by the Minister of Justice, and consisting of four members, two of whom are selected by the Ministers of Economy and Housing from among their ministry's employees, with at least one member of the committee being an architect or civil engineer.

The presence of all members is required for the validity of the committee's session, and its decisions shall be issued by a majority vote. The formation of Appeals Committees, determination of their jurisdiction, and headquarters shall be by decision of the Minister of Municipalities.

Article 9

The decision of the Rent Determination Committee shall be effective despite any appeal made to the Appeals Committee, and the decision issued by the Appeals Committee on the appeal shall be final.

Article 10

The Minister of Municipalities shall issue a decision regarding the rules and procedures governing the work of the Rent Determination Committees and Appeals Committees provided for in Articles 6 and 8 of this law.

Article 11

The current agreed rent in all lease contracts concluded from August 30, 1972, shall be reduced by 30% for premises subject to the provisions of this law. This reduction shall remain effective until the rent is reassessed in accordance with the provisions of Articles 3 and 4 of this law.

Article 12

Effective from the date of publication of this law in the official gazette, leasing of furnished premises is prohibited. Every lessor and lessee of a furnished place upon the enactment of this law shall adjust their situation in accordance with the provisions of this law within a period not exceeding sixty days from the date of its publication, even if the contract period ends before this period. This adjustment shall comply with the following principles:

• A. The lessee has the right to occupy the leased premises after the agreed period expires, considering it as unfurnished premises.
• B. The lessor must receive the leased movable property within the specified period unless it has been agreed to be sold to the lessee.
• C. The lessor may request the vacation of the premises within the specified period if it is proven that they relied on occupying the premises themselves upon the expiration of the contract period.
• D. The rent for the premises shall be determined after the specified period expires in accordance with the provisions of Articles 3, 4, and 5 of this law. Until this determination is made, the lessee shall pay a monthly rent for the premises equivalent to 60% of the furnished rent.

Article 13

An exception to the provisions of Article 12 may be made by the Minister of Housing through a decision issuing regulations governing the rental of furnished residential units for tourism or other purposes.

Article 14

In the event the rent is determined to be less than its amount after reduction according to the provisions of this law, the lessor shall reimburse the lessee the difference in installments over a period equal to the period for which it was due, starting from the first day of the following calendar month after notifying him of the decision of the Rent Determination Committee.

In the event the rent is determined to be increased from its reduced amount according to the provisions of this law, the lessee shall pay the difference to the lessor in the same manner as mentioned in the preceding paragraph, provided that the installments are due in a lump sum in the event of the lessee vacating the premises for any reason. The lessee's delay in paying the difference shall entail the same consequences as the delay in paying the rent.

Article 15

Agreement on increasing the rent after its determination according to the provisions of this law is not permissible.

Article 16

The lessor, either directly or indirectly, shall not demand any advance rent or any consideration for contract issuance or any amount in excess of the legally determined security deposit and rent. The security deposit shall not exceed the equivalent of two months' rent. This prohibition shall apply to the lessee as well.

Article 17

The lessor must conclude lease contracts in writing and register them with the Tax Authority. In the absence of written lease contracts, the lessee shall prove the leasing and contractual conditions through all means of evidence, regardless of the value of the dispute subject matter.

Article 18

In each municipality and its branches, one or more offices called “Rent Offices” shall be established, which shall be responsible for the following:

• A. Keeping physical records of all leased premises within the office's jurisdiction, recording all related data.
• B. Receiving notifications submitted in accordance with the provisions of Article 19 of this law.
• C. Receiving copies of decisions issued by Rent Determination Committees and Appeals Committees.
• D. Notifying relevant authorities of any violations of the provisions of this law.
• E. Announcing vacant premises notified to the office on a special notice board prepared for this purpose at the office's premises.

A decision shall be issued by the Minister of Municipalities to specify the Rent Offices, determine their jurisdictions and workplaces, clarify the rules and procedures for their operation, and regulate the maintenance of the records referred to in item (a). By a decision of the Council of Ministers, these offices may be authorized to lease premises on behalf of their owners in accordance with the provisions of this law. In this case, owners are prohibited from leasing these premises.

Article 19

Every lessor must notify the competent Rent Office of the vacant premises or units in his possession or leased within the jurisdiction of the office within a period not exceeding thirty days from the date of their vacancy or the expiry of the lease contract. Every lessor upon the enactment of this law must submit the mentioned notification within ninety days from the date of its publication in the official gazette. The notification must be accompanied by a copy of the previous lease contract for vacant premises and a copy of the lease contract for leased premises. The notification shall be made on the form specified by a decision of the Minister of Municipalities. The notification shall be submitted by the lessor, his agent, or by a registered letter accompanied by an acknowledgment of receipt.

Article 20

The lessor shall not refuse to lease the premises intended for rent if someone applies to rent it at the legal rent after the period specified in the first paragraph of the previous article has elapsed.

Article 21

No person, whether owner or lessee, shall withhold more than one place for his residence in the same city without justification.

Article 22

Without prejudice to the provisions of Articles 6 and 8, all disputes arising from the application of this law shall be heard before a special chamber established for this purpose within the competent Court of First Instance. These disputes shall be referred to the court upon request submitted by the concerned parties to the court's registry.

The court registry shall provide the applicant with a receipt for receiving the request, and the request shall be submitted within twenty-four hours from the date of its receipt to the head of the competent chamber to schedule a session to consider the dispute. The court registry shall notify the parties to the dispute of the request's content and the session date at least five days before the scheduled date by registered letter accompanied by an acknowledgment of receipt. The court shall adjudicate on the dispute urgently.

Article 23

The following shall be punished by imprisonment for a period of no less than four months and a fine not exceeding five hundred dinars:

1. Every landlord or tenant who submits incorrect data or papers that results in the issuance of a decision contrary to the truth by the Grievances Committee when it begins its work in accordance with the provisions of paragraphs 2 and 3 of Article 5 of this law, without prejudice to any more severe penalty stipulated in the Penal Code or any other law. .
2. Any landlord or lessee who violates the provisions of Article 12 of this law.
3. Anyone who violates the provisions of Article 16 of this law, whether he is a landlord, lessee, or an intermediary. Both the tenant and the intermediary shall be exempted from the penalty if he reports or confesses to the crime.

Article 24

The following shall be punished by imprisonment for a period of no less than three months and a fine not exceeding two hundred dinars:

1. Every owner who violates the provisions of Article 7 or the last paragraph of Article 18 of this law.
2. Anyone who violates any of the provisions of Articles 15, 20, and 21 of this law.
3. Any lessor who does not submit, within the legal period, the completed notifications stipulated in Article 19 of this law, or includes these notifications, or attaches to them incorrect data or documents, while knowing that they are incorrect, without prejudice to any more severe penalty stipulated in the Penal Code or any other law.

Article 25

The Minister of Municipalities shall issue the necessary decisions to implement the provisions of this law.

Article 26

Subject to the provisions of Article 5, Law No. 15 of 1951 concerning Rent Control, Law No. 35 of 1952 concerning Rent Monitoring, Law No. 12 of 1961 concerning Premises Rentals, and the Revolution Leadership Council Decree regarding Premises Rental issued on 27 Sha'ban 1389 H corresponding to 8 November 1969, are hereby repealed. Also, any provision contrary to the provisions of this law is repealed.

Article 27

The ministers shall each, within their jurisdiction, implement the provisions of this law.

Article 28

This law shall be published in the Official Gazette and shall come into effect from the date of its publication.

• Revolutionary Command Council
• Colonel / Abdul Salam Ahmed Jaloud
• Prime Minister
• Issued on: 26th Rabi' al-Thani, 1396 H
• Corresponding to: 26th April 1976 AD