real estate

Fine up to RO 500 for unregistered rental agreement

January 28, 2021

Muscat: Muscat Municipality has simplified its procedures for the provision of online services related to tenancy agreements with the aim of highlighting the practical and legal aspects of online services.

At the end of last year, the tenancy agreement fee was reduced to 3 per cent from 5 per cent with a view to encouraging landlords to register the tenancy agreements. Registration of tenancy agreements protects the rights of both parties on the basis of clear terms and helps create a rental database for residential and commercial properties in Muscat Governorate, the municipality has said.

Tenancy agreements are registered on the Muscat Municipality’s website after filling in an electronic agreement form and signing it by the landlord and the tenant after providing the requisite documents such as a copy of the landlord’s ID card or a copy of his agent’s ID card for individual agent or a copy of the commercial register in case that the landlord’s agent is a company.

A copy of the investment contract and a no-objection letter from the landlord should be provided in case that the leaser is an investor of the property.

The extension of tenancy agreements service is also available online through the Muscat Municipality website, Baladiyeti app and Sanad offices. The service may also be accomplished by providing the number of the previous agreement without need for providing new documents.

The tenancy agreement ensures that the landlord or lessor is not allowed to increase the rent in the middle of the lease term. The rent may be increased only after the end of the lease term or every three years.

Muscat Municipality confirmed that unregistered tenancy agreements will be referred to the Public Prosecution and a fine between RO 50 and 5,000 and/or a prison term between 24 hours and 6 months will be imposed on the violators.

It’s noteworthy that the urban inspection departments of Muscat Municipality carry out regular inspections to ensure abidance by the registration of tenancy agreements.

Registered tenancy agreement also ensures the lessor right and gives them the right to request an eviction if the tenant failed to pay the rent as per the amount stipulated by the agreement. Besides, the landlord or lessor of property can demand compensation for damage. Registered rental agreement also ensures that the tenant is not allowed to sublease the property to a third party without the landlord’s consent.

The 2020 data shows that 11,978 new tenancy agreements were registered and 36,743 agreements were renewed in the Wilayat of Seeb. In the Wilayat of Muttrah, 5,302 new contracts were registered and 39,442 agreements were extended. In Al Amerat, 2,083 new agreements were registered and 5,860 agreements were extended. In Qurayyat, 344 new contracts were registered and 1,880 agreements were extended. In Bushar, 12,619 agreements were registered and 53,934 agreements were extended.

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