Dubai RERA Tenancy Law (Law 26 of 2007) question: leased apartment in Business Bay with eight months left on the tenant's fixed-term lease

Dubai RERATenancy Law (Law 26 of 2007)

An investor buys a leased apartment in Business Bay with eight months left on the tenant's fixed-term lease. The buyer wants to move in next month. What is the tenant's position?

A The tenant may stay only if the buyer agrees, because a lease binds only the owner who signed it
B The tenant may stay until the lease ends, because a sale does not affect a fixed-term lease
C The tenant must leave within 90 days, because a new owner may end the lease on notice
D The tenant must leave within 30 days, because the sale ends the lease made with the old owner

Show the answer and explanation

Answer: B. The tenant may stay until the lease ends, because a sale does not affect a fixed-term lease

Article 28 of Law No. 26 of 2007 provides that transferring ownership does not affect the tenant's right to occupy under a fixed-term lease made with the previous owner, and Article 2 defines the landlord to include a person to whom ownership passes during the lease. The buyer steps into the seller's shoes. If he wants the unit for his own use when the lease ends, he must use Article 25(2)(c) with 12 months' notice; the sale itself gives no right to cut the lease short. Source: Law No. (26) of 2007, Arts. 2 and 28, as amended by Law No. (33) of 2008 (in force 12 Oct 2026).

Common mistake

Assuming a change of owner lets the buyer terminate the existing lease early.

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