(MENAFN- Emirates News Agency (WAM))
ABU DHABI, 6th October, 2018 (WAM) -- H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Presidential Affairs and Chairman of the Abu Dhabi Judicial Department, ADJD, has issued a decision on Rental Dispute Settlement Committees and the procedures undertaken before the same, by virtue of which the lease contracts registered with the Department of Municipalities in Abu Dhabi Emirate shall have the status of executory instruments, thereby enabling landlords to approach the Enforcement Department directly to claim the arrears, the evacuation and the handover of the leased property in case of failure to pay.
On this occasion, Abu Dhabi Judicial Department Under-Secretary, Yousef Saeed Al Abri, said that the decision is a qualitative leap in facilitating access to justice and speeding up dispute resolution on the way to achieving "an effective and accomplished justice", the main objective of the Judicial Department, and to ensure effective participation in enhancing the competitiveness of the emirate.
"This initiative, the first of its kind in the region, and supports the efforts to create an attractive environment for real estate investment in Abu Dhabi by enhancing the confidence of real estate owners and tenants in an efficient litigation mechanism that ensures simplification of procedures and speedy settlement of disputes," Al Abri added.
'Considered executory instruments, these lease contracts registered with the competent department at the Abu Dhabi Municipality, guarantee promptness in reverting the rights to their due owners and saves a lot of time and effort,' Al-Abri pointed out.
Indeed, this measure is likely to shorten the proceedings in the courts of first instance and appeal, to reduce the number of rental disputes and to regulate the rental system in the emirate. Registered contracts with the status of executory instruments shall allow the settlement within a period of time from two days to three weeks maximum and shall encourage the litigants to have recourse to this mechanism. This will also increase confidence in the rental system to allow the payment of the rights directly at the enforcement stage without passing through the other stages of the proceedings.
As regards the procedures for registration and notification of the case, the Under-Secretary explained that before registering any case dispute, the Decision sets a pre-condition, which is that a copy of the lease contract must be attached, subject to registration of the same with the municipality. This is likely to encourage all parties to abide by the registration process and not to resort to contravening housing units, so as to ensure the security of the community.
The decision allows an interim order to be submitted before the summary matters judge in the Rental Dispute Settlement Committees, in case of claiming the value of water or electricity consumption or refunding the guarantee deposit amount after the expiry of the lease period. A payment order will be issued on the basis of a petition submitted by the lessor or the lessee, and the same is appealable within 15 days.
In case of sub-lease, or if the property is subject to any damage or if there are changes in the property itself or in the nature of the commercial activity, the Decision also permits a landlord, prior to the filing of the case, to revert directly to the competent judge at the Rental Committee, to inspect the leased property by an expert and verify its condition. The order shall be issued on the day following the submission of the petition at the latest. The inspection order may not be subject to appeal.
The decision will come into force two weeks after the date of issuance, September 27.
Falah Mohammed Al Ahbabi, Head of Urban Planning and Municipalities Department, said that the Decision will contribute to activating the effect of the resolution of the Executive Council on the rules and procedures for registering lease contracts in the emirate. It shall also contribute to making a qualitative leap by registering all lease contracts with the Urban Planning Department and helping reduce the number of rental disputes.
"The Decision will help in expediting the process of adjudicating rental disputes since the registered leased contract is henceforth an executory instrument admissible before the Rental Dispute Committees without passing by the different judicial proceedings."
He said, in conclusion, that the Decision will contribute to enhancing the confidence of investors in the real estate sector and stimulate investment. The new decision, he said, will provide innovative means and solutions that will ensure meeting rental disputes requirements and resolve such cases more expeditiously through the work that will be carried out by the newly created committees which will adopt legal mechanisms likely to facilitate the procedures and save time for all concerned parties in addition to regulating the real estate market and ensuring its stability in the emirate.
All lease contracts registered with the Urban Planning and Municipalities Department guarantee the rights and obligations of each contracting party.
WAM/Tariq alfaham
MENAFN0610201800610000ID1097535159
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