Overview

• Oman Sultani Decree No. 6/1989 on the Regulation of the Relationship between Landlords and Tenants of Residential,Industrial and Commercial Premises and Registration of Lease Contracts related thereto governs the relationship between a landlord and a tenant in Oman.
• Oman Sultani Decree No. 6/1989 governs the rights and entitlements of the landlord and tenant respectively, as well as their individual and joint obligations.
• Lease Agreements are further governed by Oman Sultani Decree No. 29/2013 Omani Civil Transactions Law, which essentially narrates the rights and entitlements of the parties and their legal capacities for entering into a tenancy contract.
• This Practice Note covers the conditions that must be satisfied and the procedures that must be complied with to evict a tenant in Oman.

Definitions

• Usufruct right: Under Oman Sultani Decree No. 5/1981 on the Usufruct Law it deems this to be a real right, however the ownership is to be returned upon expiry of the finite period of 50 years or with an extension option in additional 50 years.
• Lease: It is an agreement that formalizes the relationship of and between the landlord and the tenant.
• Landlord: The person who lets the property on rent.
• Tenant: The person who takes possession of the property against payment of rent.

Practical Guidance

Standard terms under municipality contracts

Lease agreements for residential use are typically completed on a standard one page document issued by the Muscat municipality, which extensively highlights the technicalities of the leased property pertaining to rent, term, parties and other general obligations such as repair and maintenance of the leased property.

Maximum and minimum period of contract

Oman Sultani Decree No. 6/1989 does not define a minimum or a maximum period for tenancy contracts, thereby giving the parties thereto the power to reach a reciprocally acceptable term, which will be binding and enforceable upon entry thereof. However, article 6 of Oman Sultani Decree No. 6/1989 does, save for a prior agreement to the contrary, gives right to the landlord to refuse renewal of the tenancy contract on completion of four years of the contract coming into effect in case of residential units, and five years for commercial, industrial or vocational properties.

Termination of lease

Lease agreements will remain effective until the expiry stipulated in the lease agreement or by mutual agreement by both parties. However, if it is not expressly stated otherwise by either party, the lease will be renewed for a similar duration upon expiry. The tenant is required to provide at least three months’ notice, or half the period of the contract if it was less than three months. Failure to provide a notice period will result in automatic renewal of the lease on the same terms and conditions for a period matching the original term.

Eviction

According to article 7 of Oman Sultani Decree No. 6/1989, the landlord may request that the tenant be evicted from the leased property prior to the expiry of the lease agreement, if the tenant defaulted in any of the following conditions:

• The tenant defaults on paying the amount due as per the agreement within 15 days from maturation. Eviction will not be instituted if the tenant performs all their financial obligations, including legal fees, incurred by the landlord, before the dispute is adjudicated. The court may order the evacuation if the tenant repeats the violation without a valid excuse.
• The tenant uses or authorizes the use of the leased property for a purpose contrary to the agreement, or if such use was harmful to the leased property or public health, or if it was disconcerting the public or violating the public morals.
• The tenant leases or hands over the property to a third party without the authorization of the lessor. Handing over commercial, industrial and vocational properties will be incorporated into the lease agreement.
• The property was needed for the residential use of the landlord personally, their spouse, or their first and seconddegree relatives, provided they have no other place to live. If the landlord had multiple leased properties, they may choose from any of these, provided the tenant of such property is given a six-month prior notice of eviction. The landlord may occupy the vacated property within three months and for a period exceeding one year. Otherwise, the tenant will have the right to reoccupy the property with the previous rent.
• The concerned municipality licensed tearing down the property if it was about to fall down or upon the landlord’s request for reconstruction purposes. An order of vacating the property may not precede the issuance of the municipality’s destruction license. The tenant will have a three-month period to vacate the property if the property was susceptible to crumpling and six months if the purpose of tearing the property down was for renovation and reconstruction. This period will start from the date of issuance of the license.

Related Content

Legislation

• Oman Sultani Decree No. 6/1989 on the Regulation of the Relationship between Landlords and Tenants of Residential,
• Industrial and Commercial Premises and Registration of Lease Contracts related thereto
• Oman Sultani Decree No. 29/2013 Omani Civil Transactions Law
• Oman Sultani Decree No. 2/1998 Promulgating the Land Register Law
• Oman Sultani Decree No. 5/1981 on the Usufruct Law
• Oman Sultani Decree No. 88/1982 on the Executive Regulations of Oman Sultani Decree No. 5/1981 on the Usufruct Law
• Oman Sultani Decree No. 29/2002 Promulgating the Law on Civil and Commercial Procedures