Overview
Definitions
Practical Guidance
Lease agreements
Lease agreements for residential purposes are typically completed on a standard one page form issued by the respective municipality, which has the general terms of the lease on the overleaf. The terms mentioned there are the reproductions of Oman Sultani Decree No. 6/1989 in nutshell. In cases where the lease is for commercial and industrial purposes, the parties usually enter into an addendum to the tenancy contract with additional terms and conditions that can be separately agreed upon by the parties, provided that such terms and conditions do not contradict Oman Sultani Decree No. 6/1989.
Maximum and minimum period of contract
There is no minimum period under Oman Sultani Decree No. 6/1989. However, a lease to be registered with the municipality cannot be more than seven years. If a lease period is longer than seven years, then the long lease must be registered with the Ministry of Housing. In any case, a lease cannot be more than 50 years. A usufruct contract that affords more land and property rights to a lessee cannot itself be entered in for more than 50 years.
Difference between usufruct and lease in land rights
The lessee may not transfer the lease agreement to a third party, and may not subcontract the property absent the written authorization of the lessor.
Lease contracts will remain in force until the expiry thereof as agreed between the parties, and will be automatically renewed for a similar duration unless either party expresses its intention of evacuating the premises, providing the other party with a minimum notice period of three months prior to the expiry of the duration, or half the period of the contract if it was less than three months.
The lease does not expire by either party’s death, although the lessee’s successors may demand the termination of such if the incurred liability outweighed their financials or if the property was no longer of use to them. The lease may also be terminated if the agreement was entered into due to the lessee’s personal skills or for personal considerations.
In accordance with article 9 of Oman Sultani Decree No. 6/1989 the lease may not be terminated by the lessee’s death or abandonment of property, and will remain in force for the wife, underage children and parents. The agreement will also remain in force for relatives up to third degree of kinship permanently living in the property for at least a year prior to the death or abandonment.
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