End of the lease contract Thursday, 05 August 2010 01:50

3 - Chapter III

The end of the lease (15-19)

Article 15

Without prejudice to the provisions of Article No. 19 of this Law, leases end when the period set for them in the contract comes to an end. Tenant-landlord satisfaction can automatically renew the contract for a similar period with the same terms and conditions.

Article 16

The death of any of the signatories to the contract does not either bring it to an end or nullify it. But, tenant inheritors who had lived with him/her before his/her death can demand termination of the lease contract.

Article 17

After a tenant’s death, his/her spouse, children and parents have to be committed to the terms of the contract in an equal manner. But those who leave the leased property before the death of the tenant are not entitled to either any rights or duties as far as the lease contract is concerned.

Article 18

In case tenants or inheritors sell leased properties (if this is a factory, a shop or a commercial centre) to a third party, this third party has to be committed to the same terms and conditions of the contract until its end, unless agreed otherwise.

In case of a special clause in the contract, the Committee can confirm the transfer of the lease to new buyers, provided that they give guarantees of their ability to honour their commitments to the terms of the lease contract, and not cause harm to the landlord.

Article 19

Landlords have the right, even before the lease contract comes to an end, to ask the Committee to evacuate the leased property in the following cases:

1 - Failure by tenants to pay the rent as agreed with the landlord without presenting an acceptable excuse to the Committee.

2 - Tenants leasing or leaving leased properties to a third party without getting written permission from the landlord.

3 - Using leased properties in ways that violate the terms of the lease contract, public order, or morality.

4 - The concerned authorities issuing a demolition order or if the fragile state of leased properties can jeopardise the safety of the tenants.

5 - The desire of the landlord to bring the property down in any of the following cases:

A - When the property is more than 50 years old.

B - When landlords plan to build investment or business projects instead, provided that they get the necessary approval from the authorities concerned.

6 - The desire of the landlord to add more levels to the building or modify it, taking the following things into account:

A - Level addition and building revamp cannot be done in the presence of tenants in the leased property in the light of the instructions of the licensing authority.

B - Landlords have to get the necessary licences from the authorities concerned.

C - Tenants have to be given a grace period not less than six months to evacuate the leased property.

D - Landlords have to start work on the property within six months of tenant evacuation.

If landlords fail to do this, tenants have the legal right to demand compensation.

7 - If landlords want tenants to evacuate leased properties so that they can give these properties to sons, daughters or relatives, tenants have to be given a notice six months earlier.