Landlord and tenant’s agreement on the jurisdiction of the DIFC Courts with respect to the rental of real estate in Dubai contravenes public order

February 12, 2020

  The legal knowledge relating to real estate rent issues in Dubai is an important necessity that all landlords and tenants should be aware of. Especially when it is so easy for landlords and tenants to make mistake in concluding lease contracts. This article will focus particularly on the place of jurisdiction in the event of a dispute. It is necessary to distinguish between the jurisdiction of the Dubai Rental Disputes Center (Center) by considering the disputes arising between landlords and tenants in the emirate or in the free zones and the jurisdiction of the Dubai International Financial Center (DIFC) courts with real estate located in the spatial scope of the DIFC, we clarify this as follows: Article 1: Jurisdiction of the Rental Dispute Center: The Rental Disputes Center in Dubai specializes in all rental disputes in all areas in the Emirate except for disputes within areas that have special committees or competent courts. Article (3) of Law No. (26) of 2007 on regulating relationships between landlords and tenants in the Emirate of Dubai states that the law shall be applicable to leased properties in Dubai, including open and agricultural lands. This excludes hotels and free accommodation provided by natural or judicial persons to their employees. Article (6) of Decree No. (26) of 2013 Concerning the Rental Disputes Centre in the Emirate of Dubai states that: The Centre will have the exclusive jurisdiction to: 1) Determine all Rent Disputes that arise between landlords and tenants of real property situated in Dubai or in free zones, including counterclaims arising therefrom, as well as determine applications for interim or urgent relief filed by any of the parties to a lease contract; 2) Determine appeals from the decisions and judgments that are subject to appeal in accordance with the provisions of this Decree and the regulations and resolutions issued in pursuance thereof; and 3) Enforce the decisions and judgments issued by the Centre in the Rent Disputes that fall within its jurisdiction. The Centre will have no jurisdiction to hear the following Rent Disputes: 1) Rent Disputes that arise within the free zones which have tribunals or special courts having jurisdiction to determine the Rent Disputes that arise within their boundaries; 2) Rent Disputes that arise from a lease finance contract; and 3) Disputes that arise from long-term lease contracts covered by the above mentioned. The above mentioned points clarify that public order contravenes any agreement between the landlords and tenants on the jurisdiction of the DIFC courts to deal with rent disputes outside the scope of the DIFC. Article 2: Jurisdiction of DIFC Courts: The UAE legislator has exclusively defined in the Real Property Law the jurisdiction of the DIFC to hear all real estate disputes that are within the spatial scope of the DIFC. In other words, all real estate located within the spatial and geographical scope of the Dubai International Financial Centre shall have jurisdiction in that case exclusively to the courts of the DIFC. Whereas, by reviewing the Real Estate Property Law No. 10 of 2018 of the DIFC, we find that the issue of jurisdiction has been resolved […]

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Clarifications on the Protection Decree Concerning Domestic Violence

February 12, 2020

Morally and cognitively, developed societies strive to eliminate all kinds of crimes and excluding them from the circle of interactions between all groups of society, especially the family. The family is the fundamental core of all peoples; it may be basis of growth and progress and may be the basis of decline and devastation. Therefore, the issuance of special legislation to protect the family is a very essential matter stemming from the deterrence and protection dualism. Accordingly, on 29 August 2019, the President of the United Arab Emirates issued Federal Law No. (10) of the Year 2019 concerning Protection Against Domestic Violence (hereinafter, the “Law”). The Law will come into effect from the date to be determined by the UAE Council of Ministers’ decision. The Law contains 13 articles that includes the Law’s objetives, the concept of violence,  penalties, and settlements. The provisions of the Law shall apply to domestic violence crimes committed by a family member against another member of his family, whether he is from the immediate or branch or relatives by lineage or marriage to the fourth degree, or from persons covered by alternative family custody. This Law has been issued to protect the family and deter all harmful practices against the family that affects the physical state, integrity and mental health of the family, women, and children. Violence is not only physical The Law not only criminalizes physical violence, but also has set out three other categories that have been added to physical violence, namely: psychological, sexual and economic abuse. The link between these three types is the consequence and effect of violent action, which results in moral, physical, material or sexual harm. Any of these causes a person to feel unsafe and insecure and his/ her psychological and mental state exposed to constant danger. The Role of the Public Prosecution The Law gave the Public Prosecution the power to issue a protection order on its own or based on the victim’s request to deter violent action and protect the victim’s body, well-being and economic status. The Law has provided protection measures to be issued by the Public Prosecution when needed such as preventing approach or entry to the places designated for victim’s protection or any places mentioned in the protection order that has specified for a minimum of thirty days and a maximum of sixty days. Penalty or Conciliation The provisions of the Law covers the principle of punishment for the commission of the criminal offense and the principle of tolerance and reconciliation to allow family members to restore their relationship. The penalty in this Law ranged from imprisonment for a period of three to six months and a fine between 1,000 and 10,000 AED, if the offender violated the protection order issued by the Public Prosecution, or if it commits any of the criminal acts stipulated in the decree. The Law also referred to the provisions of UAE Penal Code of 1987, and doubled the penalty if the offender repeated an act of family violence within one year. As for conciliation, the Law referred to the provisions of the Criminal Procedure Law No. 35 […]

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Law No. (2) of 2019 Amending Some Provisions of Law No. (21) of 2015 Concerning Judicial Fees in Dubai Courts

February 12, 2020

  His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister, in his capacity as Ruler of Dubai, has issued an amendment to Law No. 21 of 2015 regarding the new fees of the Dubai Courts. The amendment replaced the provisions of Articles (8), (14) and (35) with provisions relating to non-payment of fees, the estimated value of the case, and the relative fees for implementation. The revisions include: Not subject to fees: According to the amended Article (8), certain categories, such as, claims, appeals and applications are not subject to the fees initially prescribed by the original law. As such, claims, appeals or applications filed by federal or local governmental authorities in any of the emirates of the country, or claims related to endowments, donations and wills for charitable works, and charitable associations, or claims filed by shareholders against the Board of Directors of a public shareholding company or its executive management –  whenever the percentage of the company’s claimants’ share does not exceed (10%) of its total shares, are not subject to fees. Furthermore, the fees prescribed by the original law shall not be subject to appeals against alimony judgments, deposit by Trustee in Bankruptcy, bidder’s deposit of the price of the property, and what the federal and local governmental authorities deposit on behalf of the concerned parties. Applications for publicity or proof of Islam, ratification of a social welfare application, and requests for death and heredity are also not subject to fees. Estimated Value According to the amended Article (14), claims filed before the courts of first instance, civil suits of a criminal case and claims arising out of commercial business of more than 500,000 dirhams, excluding personal status lawsuits, shall be charged a fee of (6%) of the claim value. The amount of this fee shall be from a minimum of AED500 but not more than AED20,000 if the claim value does not exceed AED500,000; AED30,000  if the claim value ranges between AED500,001 to AED1,000,000; and AED40,000 if the claim value is over AED1,000,000. The same article stipulates that the lawsuits arising from commercial business brought before the courts of first instance which are worth AED500,000 or less shall be charged 6% of the claim value provided that the amount of this fee shall not be less than AED500 and not more than AED20,000, and this fee of (6%) of the claim value shall be collected from the claimant upon registering the claim. The amount of this fee shall not be less than AED 500 and not more than AED5000. This amendment is in favor of claimants who filed a commercial lawsuit with a claim of less than AED500,000, to pay court fees upon filing a suit with a maximum of AED5,000 instead of AED20,000, as provided for under the original law prior to this amendment. In addition, it has been stipulated in this Article that this fee paid by the claimant shall be added to the expenses of the adjudged lawsuit and shall be collected from the convicted person by a final judgment. This is equivalent to 6% of the value of the […]

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