Thursday, January 04, 2007

Tenancy contracts should be checked for additional new clauses

The Chairman of the Dubai Rent Committee, Saeed Al Ghundi has requested the tenants to read the contract thoroughly before signing them to ensure that no additional clauses are introduced, as in case of any disputes, the rent committee will have to take a decision based on the tenancy contract.

For instance, in case the tenancy contract states that the tenant will have to vacate the house after a certain period, the tenant will be left with no other option except to vacate the house. However, Al Ghundi mentioned that tenants should refuse to sign a contract that carries such a clause.

Al Ghundi clarified that other than the seven percent hike, the landlords are not permitted to introduce any new changes, and in case there is a new clause, the tenant is permitted to refuse such a deal. In case of any disputes, the parties can approach the rent committee, but the person who lodges the complaint should pay 3.5 percent of the annual rent, as fee to the rent committee, and the losing party will have to bear the expense.

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