Saturday, June 14, 2008

Ras Al Khaimah curbs new rent law

Ras Al Khaimah has passed an order freezing the new rent law, and has announced that the earlier law would remain effective until 1st October 2008. In the meanwhile, new amendments will be done to the new legislation.

A senior government official revealed that the controversial Law No.8 for 2008, issued during 26th May 2008 required amendments, as it was vague.

The new law which states capping of rent increases at five percent for residential properties and seven percent for commercial properties has been criticized as it leaves landlords with an upper hand.

According to the official, Article No.24 of the new law has many interpretations, which gives landlords the right to evict their tenants. This aspect is being reviewed. Besides, the residents had been approaching the Rental Dispute Authority, and the Courts, with enquiries, questions and complaints.

The Rental Dispute Authority is yet to invoke the new law in any dispute, and has not accepted any dispute cases, as it has been awaiting the clarification of the new law from the Emiri Court.
The official revealed that by re-imposing the earlier law with 15 percent rent cap is being done to protect the rights of both tenants and landlords.

Ever-since the announcement of the new law, people have been complaining that it is vague and unfair to the tenants, as it gives the landlords the right to evict them and re-rent the properties.
Several landlords had approached the courts to file eviction cases, but their cases were put on hold, until the government decided to enforce the older law.

No comments: