Can landlord mention higher rent in tenancy contract in UAE?

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Can landlord mention higher rent in tenancy contract in UAE?

Sharjah - It should be noted that the actual rent to be paid and the rent mentioned in the contract should be the same.

By Ashish Mehta

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Published: Mon 24 Sep 2018, 1:29 PM

I am a Sharjah resident. My tenancy contract will be expiring soon and I'm searching for a new apartment. I am facing a peculiar issue as some landlords want to make a tenancy contract for me with an annual rent that is Dh5,000 higher than the actual rent.

This means that for a flat with an annual rent of Dh50,000, they will give me a tenancy contract that states the rent as Dh55,000. I would have to pay only Dh50,000 for the first year. If the "market conditions improve", I would have to pay Dh55,000 from the following year. Is this legal? To whom should I complain about such practices?
Further, the real estate agency will be charging two types of commission from me - one as 'office commission' and the other as 'agent commission'.
 

Pursuant to your queries, the relation between the landlord and the tenant in the emirate of Sharjah is governed by the Sharjah Law No. 2 of 2007 regulating the relationship between landlord and tenant in the Emirate of Sharjah (the 'Sharjah Rent Law'). 
It should be noted that the actual rent to be paid and the rent mentioned in the contract should be the same. The said proposal of mentioning higher amount in the tenancy contract may be due to the prevailing rental laws in the emirate of Sharjah whereby the rent cannot be increased for first three years of tenancy contract in accordance with Article 13 of the Sharjah Rent Law, which states,
"a. The landlord may not for any reason whatsoever increase the rent agreed upon before the expiration of three years from the date of signature of the lease contract.
b. The increase in the rent after the expiry of the period referred to above shall be of equivalent value.
c. The rent increase agreed upon may not be increased even once until after the expiration of two years as of the date of the first increase."
Further, a real estate agency cannot collect its commission under separate heads as 'office commission' and 'agent commission'.
You may approach Rental Dispute Committee based in Sharjah Municipality and file a complaint against the landlord if he is pressing on to add higher value of rent in tenancy contract and against the real estate agency for demanding higher commission as stated here in above. 
Know the law
The landlord may not for any reason whatsoever increase the rent agreed upon before the expiration of three years from the date of signature of the lease contract

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom, Singapore and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.



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