When buying and selling property in Dubai, property owners may sell their tenanted property. In such a scenario, the tenants as well as the new owners might need to know if the new owner can move the tenants out of their newly acquired property.
Buying a tenanted property comes with the landlord duties that are tied to the active tenancy agreement. The Dubai Land Department states that a tenant’s rights remain unchanged when a property is transferred to a new owner, provided the tenancy contract has fixed term.
If the buyer keeps the tenant, the buyer becomes the new landlord. The new owner takes on the obligations of the obligations of the previous landlord, including applicable terms in the existing tenancy agreement.
Can the New Owner Ask the Tenant to Leave?
There are specific rules for eviction. For example, if the new owner wants to use the property for themselves or a first-degree relative, the required legal process applies. A 12 month notice is required for personal-use eviction. The Dubai Land Department also states that the notice must be served through the appropriate legal channels.
This means a buyer should not assume that purchasing a tenanted apartment means immediate vacant possession.
What Should Buyers Check Before Buying?
If you are considering a tenanted property in Dubai, review the tenancy before completing the purchase.
Key points include:
When does the current tenancy contract expire?
What is the current annual rent?
Has an eviction notice already been issued?
When was the notice served?
What terms are included in the existing agreement?
Is the security deposit documented?
Does the buyer want to keep the tenant or use the property themselves?
These details can affect both the timing of the purchase and the buyer’s plans for the property.
What Should Tenants Know?
A tenant should not assume that a property sale means they must leave immediately.
If the property is sold and the new owner retains the tenancy, the new owner becomes the landlord. The DLD states that the new landlord should provide updated contact details and information about the security deposit.
If a tenant believes they are being asked to leave without following the required process, they can approach the Rental Disputes Centre. The RDC handles rental disputes between landlords and tenants in Dubai.
Buying a Tenanted Property Requires Planning.
A tenanted property can suit a buyer looking for an existing rental arrangement. But the tenancy should be understood before the purchase is agreed.
For tenants, knowing their rights can provide clarity when their landlord sells.
For buyers, the tenancy agreement is review, notice history and expected possession dates to avoid any surprises.
The terms of the tenancy agreement stays while the ownership changes. To know how to carry on the existing landlord duties or to know how to use the property for your own usage, an experienced property consultant will walk the buyer through every step that you would have to know.