Scope of Application of this Law
All lease contracts for built real property concluded before 23/7/1992 shall be subject to the provisions of this Law.
Law · 2014-05-09 · 59 articles
Whereas Article 56 of the Constitution provides that the President of the Republic shall promulgate within one month of their referral to the Government those laws on which final approval has been given, and shall request their publication. Whereas Article 57 of the Constitution provides that if the time limit expires without the law being issued or returned, the law shall be deemed enacted by operation of law and must be published. Whereas the Chamber of Deputies approved the Rent Law and the Speaker of the Chamber of Deputies referred it to the Government for publication on 2014/4/8. Whereas the said law was previously published in Supplement No. 20 of the Official Gazette dated 2014/5/8, and whereas the Constitutional Council, by its decision No. 2014/6 dated 2014/6/13, ruled that the Rent Law approved by the Chamber of Deputies had been published on a date on which it had not yet become enacted by operation of law pursuant to the last paragraph of Article 57 of the Constitution. Whereas, in implementation of the above-mentioned decision of the Constitutional Council, the one-month period specified in Article 57 of the Constitution expired on 2014/5/8. Therefore, In implementation of the provisions of Article 57 of the Constitution, The Rent Law is deemed enacted by operation of law as of 2014/5/9 and must be published. This Law was published in Official Gazette No. 27 (Supplement) dated 2014/6/26, after having been previously published in Official Gazette No. 20 (Supplement) dated 2014/5/8.
General Provisions
All lease contracts for built real property concluded before 23/7/1992 shall be subject to the provisions of this Law.
The following shall be exempt from the provisions of this Law:
2. The text published in the Official Gazette contained the word «ʿinda» (at the time of) whereas the correct word should be «ʿaqd» (contract); correction accordingly made.
Lease of Residential Premises and Provisions of the Assistance Fund
Special Provisions Concerning the Assistance Fund
A special fund for residential leases covered by the provisions of this Law (hereinafter referred to in this Law as «the Fund») shall be established, placed under the authority of the Ministry of Finance, and its accounts shall be maintained at the Treasury Directorate of that Ministry. The Fund aims to assist, wholly or partially as needed, all tenants covered by this Law whose monthly income does not exceed three times (3x) the minimum wage in paying the increases that arise on their rent amounts pursuant to the provisions of this Law. The application for assistance from the Fund's contribution, which must include the determination of the monthly family income, shall be submitted by the tenant or his legal successor wherever the tenant and the legal occupants of the leased premises are mentioned together in this Law.
The tenant who leased pursuant to the provisions of either Law No. 29/67 or Law No. 10/74 in buildings that were considered luxury buildings, and the non-Lebanese tenant, shall not benefit from the Fund's benefits.
The revenues of the Fund shall consist of: - Annual contributions from the State provided for in the budget of the Ministry of Finance to cover the Fund's obligations. - Donations, gifts, and bequests following approval by the Council of Ministers; the value of such donations and bequests shall be deducted from the amounts taken as a basis for determining income tax due, and also deducted from the amounts taken as a basis for determining transfer fees, and shall be exempt from fees levied on donations.
The management of the Fund's assets, including the rules of expenditure and collection, shall be governed by financial regulations issued by decree adopted in the Council of Ministers upon the proposal of the Minister of Finance.
Article 7 was annulled pursuant to Item Second – On the Merits of Constitutional Decree No. 2014/6 dated 2014/8/6.
3. Article 7 of the Rent Law issued on 2014/5/9, before its annulment by Constitutional Decree No. 2014/6 dated 2014/8/6, read as follows: «Article 7 – For the application of the provisions relating to payment of increases on rent amounts for built properties consisting of fewer than four units, a committee of four members shall be formed, one representing the owners, one representing the tenants, one representing the Minister of Finance, and one representing the Minister of Social Affairs. The committee shall be appointed within two months from the date of entry into force of this Law by decree issued upon the proposal of each of the Ministers of Justice, Finance, and Social Affairs; the decree shall also designate the chairman and four members representing the bodies referred to above. More than one similar committee may be appointed in each governorate when required. Each committee shall be assisted, by decision of the Ministry of Justice, by a secretary and a process-server. The remuneration of each of the chairman, members, secretary, and process-server shall be determined by decision of the competent ministers. The committee shall hold its sessions inside or outside official working hours at the places designated by the Minister of Justice. This committee shall have judicial status.»
The tenant wishing to obtain a contribution from the Fund shall submit an application to the committee having jurisdiction over the leased premises, free of all fees; this application may be submitted before the expiry of the time limit for payment of the rent increase resulting from the application of this Law pending the committee's decision approving or rejecting the contribution. The application must fulfil the following conditions:
The committee shall examine the contribution application in light of the beneficiary's monthly family income and shall state its opinion as follows:
Subject to the provisions of Articles 8 and 11 of this Law, the committee shall decide, in light of the results of its proceedings to determine the beneficiary's monthly family income, on the eligibility or non-eligibility of the contribution application, as well as on the amount of the contribution, as follows:
Should the tenant wish to continue benefiting from the Fund's contribution for subsequent extension years, the forms referred to above shall be re-filed with the committee before each extension year up to and including the ninth year. The contribution application, as provided for in Article 8, shall be appended to the contract suspending the time limit for payment of the increase resulting from the provisions of this Law, pending the committee's decision approving or rejecting it.
Any person who gives the committee a false statement or declaration, or uses or benefits from either of them, shall be liable for the offence of forgery and use of forged documents. Upon discovery of any false statement or declaration and its use and the benefit derived therefrom, the committee may, depending on the circumstances, inform the Public Prosecution, and the tenant shall forfeit his right to obtain a contribution from the Fund.
Article 13 was annulled pursuant to Item Second – On the Merits of Constitutional Decree No. 2014/6 dated 2014/8/6.
4. Article 13 of the Rent Law issued on 2014/5/9, before its annulment by Constitutional Decree No. 2014/6 dated 2014/8/6, read as follows: «Article 13 – In all cases, the decision issued by the committee shall be deemed final and shall not be subject to any form of appeal; its decision shall be final and not open to challenge.»
Lease of Residential Premises
The provisions of this Part shall apply to lease contracts for built residential real property concluded before 23/7/1992. A lease contract shall be considered residential if it relates to premises designated for residential use. Where the lessor lets premises under a single contract for both residential and non-residential purposes, they shall be classified as residential premises if the primary intended use is residential.
Lease contracts for residential premises shall be extended for up to nine years from the date of entry into force of this Law, on condition that the tenant pays the equivalent rent value gradually as follows:
In the event that the tenant vacates the leased premises at his own request in exchange for a financial contribution obtained from the Fund, provided that the conditions for benefiting from the Fund are met, the provisions of Article 27 of this Law shall apply.
On the determination of the equivalent rent value:
5. Paragraph «b-4» of Article 18 of the Rent Law issued on 2014/5/9, before its annulment by Constitutional Decree No. 2014/6 dated 2014/8/6, read as follows: «4 - If the two reports differ, either the lessor or the tenant may refer the dispute arising from the difference to the committee in the governorate where the leased premises are located, attaching to the application a copy of both reports and their annexes including documents of notification. The committee shall issue its decision as a final ruling not open to challenge by any means of review.»
6. The text published in the Official Gazette contained the phrase «yajdhabu an yatadammana» whereas the correct phrase should be «yajib an yatadammana» (must contain); correction accordingly made.
The report must contain, under penalty of nullity, the names and positions of the experts and their references in the experts' list, a statement of how they prepared the report, the date on which the valuation was carried out, and the methods adopted in conducting the valuation — from the surface area of the apartment to the type of construction and an average estimate of construction costs (popular, medium-to-popular, medium-to-luxury, luxury) — and the area adjacent to the apartment consisting of regulated or unregulated land where the floor is standard, including the selected valuation of the price per square metre in a freehold building and the leased building, a statement of any reduction in the average cost per square metre of the building caused by deterioration or misuse, or any increase in the building's value from improvements and upgrades introduced by the tenant with the owner's permission or with his knowledge, or contrary to his knowledge, and any data or official administrative assessments used by the experts in estimating the price per square metre. The report and its annexes must bear the signatures of the experts on every page, together with the date on which the report was prepared.
The equivalent rent value shall be determined on the basis of five per cent (5%) of the fair market value of the leased premises in its current condition, where it is privately owned.
Experts shall be liable for the content of the report they have prepared, for the accuracy of the supporting documents attached thereto, and for the precision of the valuation. For the purposes of applying this Law, experts appointed by either the owner or the tenant shall be deemed as if appointed by the judiciary.
Subject to the provisions of Article 32 of this Law, if the owner wishes to recover the leased premises for family necessity during the first four years of the extension period (years one through four), he must pay the tenant compensation of no less than four years' rent calculated on the basis of the equivalent rent value as determined. If the owner wishes to recover the leased premises during the first four years of the extension period (years one through four) for the purpose of demolishing the building in which the leased premises are located and constructing a new building in its place, he must pay the tenant compensation of no less than six years' rent calculated on the basis of the equivalent rent value as determined. In both of the above cases, the tenant who satisfies the conditions for obtaining a financial contribution from the Fund may apply to the committee for that contribution as set out below:
If the owner wishes to recover the leased premises for reasons other than family necessity and demolition, he shall follow the procedure below:
The owner of leased premises that were leased under either Law No. 29/67 or Law No. 10/74 in buildings that were considered luxury buildings may recover the leased premises in cases other than family necessity and demolition by paying the tenant compensation equal to half of the compensation due in the case of demolition as provided for in item 2 of Article 22 above. In that case, the provisions relating to the remaining period of the extension term shall not apply.
Subject to the provisions of Articles 22, 23, and 24 of this Law, the owner may in all recovery cases provided for in this Law tender and deposit before the notary public in the area where the leased premises are located the compensation determined under this Law or agreed upon by agreement, clearly indicating the proportional decrease applicable by reason of the remaining extension period. The recovery application shall be accompanied by the tender and deposit and evidence that the equivalent rent value has been determined by agreement or by adjudication. If the tenant consents to the tender and deposit, the procedure provided for in item 4 of Article 23 shall be followed, and the notary public shall then pay the tenant 90% of the value of the tender and deposit in accordance with the relevant procedures, on condition that the remaining balance be recovered upon completion of actual vacation and evidenced by written declarations from both the owner and the tenant, or from the tenant alone before the notary public.
The tenant who has received an amount equivalent to 90% of the value of the tender and deposit referred to in Article 25 above shall have a period of six months from the date of receiving that amount to vacate the leased premises, during which he shall continue to pay the rent due; thereafter he shall be deemed to be occupying the leased premises without lawful justification, and for each day of delay, a non-reducible coercive fine payable to the lessor, equivalent to five days' rent calculated on the basis of the equivalent rent value, shall be imposed.
1 - During the extension period referred to in item 1 of Article 15 of this Law, if the tenant who satisfies the conditions for obtaining a financial contribution from the Fund wishes to waive his lease and vacate the leased premises, delivering them vacant to the owner before receiving a financial contribution to be paid on his behalf by the Fund in monthly instalments as provided for in this Law, the owner shall be notified in writing of this wish within a period not exceeding two months from the date of determination of the equivalent rent value by agreement or by adjudication for the first extension year, and within the same period before each of the other extension years. The owner may not invoke the tenant's written expression of a wish to vacate the leased premises unless the tenant has actually obtained the Fund's contribution.
Notwithstanding the provisions of laws relating to financial affairs that require the production of a financial or municipal tax clearance, the payment of the contribution to the owner and to the tenant may not under any circumstances be made conditional on the production of a financial or municipal tax clearance.
Upon the death of the tenant or his abandonment of the leased premises, the following persons shall succeed him by operation of law in benefiting from the original or extended lease contract, as the case may be, on all its other terms or as amended by operation of law:
Judicial proceedings to enforce eviction and everything appurtenant thereto shall be subject to a fixed fee. All transactions shall be exempt from any proportional fees and from stamp duties on all notarial acts relating to valuations and their notification, notices, tenders, and deposits.
The tenant may not assign the leased premises or sub-let them, in whole or in part, except with the owner's written consent and on such terms as may be agreed. If the original tenant assigns the leased premises and this was expressly permitted in the original or extended lease contract by operation of law, the assignee shall benefit from the statutory extension and shall succeed the original tenant, and the direct lease from the owner shall terminate. In the event of total or partial sub-letting with the owner's express consent in the original or extended contract, the intermediary rental relationship between the owner and the original tenant shall terminate, and the term of the sub-lease shall end upon the expiry of the original lease. Sub-leases concluded from 23/7/1992 onwards shall be governed by freedom of contract in accordance with the provisions of Law No. 92/159. Both the owner and the original tenant may request the joinder of the sub-tenant in any action brought without the original tenant, so that any judgment rendered without the original tenant shall be binding on the sub-tenant; the sub-tenant shall nonetheless be entitled to claim compensation from the original tenant in the event of the latter's proven bad faith, fault, or negligence.
a) Subject to the provisions of Article 22 of this Law, the owner may request recovery of the residential leased premises for his own use or for the use of one of his relatives, provided he establishes a family necessity compelling him to recover the premises, and that neither he nor the person for whose benefit recovery is sought has another suitable and habitable residence, of a standard comparable to that of the leased premises sought to be recovered, that is unoccupied and available within the boundaries of the same municipality or an adjacent municipality. The owner may also request recovery of leased premises adjacent to his own residence, whether horizontally or vertically, provided the purpose of recovery is to annex the recovered premises to form a single integrated residential unit meeting a family need. Persons who own three-quarters of the shares of the leased real property on a co-ownership basis, and the owner who obtains the written consent of his co-owners to secure that majority, shall benefit from these provisions. b) The owner of a hospital, educational, teaching, charitable, or similar institution, who has let a part of it or a part of the adjacent premises for residential purposes, may recover that part in addition to its original use for the purposes of the institution. c) The owner may request recovery of the leased premises for the purpose of demolishing the building in which they are located and constructing a new building in its place. Where the purpose is to add one or more floors, he may request recovery of the building standing on a parcelled area, provided that building occupies less than half the surface area permitted under the Building Law. In such cases, the owner may bring a single recovery action against all tenants and must establish that the property on which the new building is to be constructed is suitable for building in accordance with the Building Law and urban planning requirements. d) The provisions of this Law shall apply to pending recovery actions in which no final judgment had been issued before the date of entry into force of this Law.
The owner who has recovered his leased premises pursuant to the provisions of Article 22 of this Law shall be required to pay the tenant additional compensation equal to half the value of the compensation he paid the tenant, without the tenant being required to prove the harm suffered, in the following cases:
The right to extension shall be forfeited and the tenant shall be ordered evicted in the following cases: a- If the tenant fails to pay the rent due within two months of being personally served, or served through an adult member of his family residing with him, provided he was notified by means of an acknowledged open-faced registered card, or by a notarial letter, or by a notice issued by the execution department in accordance with the provisions of Article 51 of this Law. The addressee must, within two months from the date of entry into force of this Law, designate a place of domicile; failing this, the service procedures provided for in the Code of Civil Procedure shall apply. If it proves impossible to effect the notifications referred to in the preceding paragraph, notification shall be deemed made by publication in two local newspapers designated by the urgent matters judge, after establishing the impossibility of personal service, upon application by the lessor by a petition not subject to any fees or stamps of any kind; a copy of the notice shall be affixed to the door of the leased premises by a process-server, and the two-month period shall run from the date of the last publication or affixing. If it proves impossible to serve a notice issued by the execution department, notification shall be deemed made by publication and affixing in accordance with the relevant procedures, by a decision of the head of the execution department. The tenant shall bear the costs of these procedures. b- If the tenant misuses the leased premises by making alterations or modifications not resulting from normal use, or uses them or permits their use in a manner incompatible with the terms of the contract without the lessor's written consent. The exercise by the tenant who is a liberal professional of his profession within the leased residential premises, due to having been compelled to leave his professional premises, shall not be deemed misuse; in that case, the owner may not demand any compensation from the tenant, nor may the tenant demand additional compensation from the owner in recovery cases. Improvements carried out by the tenant at his own expense shall not be deemed misuse, provided they do not impair the structural integrity of the building. Installation of lifts, water tanks, heating or cooling systems, or hot water systems shall be considered in this category. Likewise, works to adapt the leased premises or the building entrances for the needs of a person with a disability residing therein, in accordance with the standards of the law on the rights of persons with disabilities in relation to buildings and facilities, shall not be deemed misuse, provided such works are technically feasible and do not impair the structural integrity of the building. Except for simple surface decoration and finishing works and the installation of individual cooling or heating units, the tenant wishing to benefit from the provisions of this Article must first seek the lessor's authorisation before the urgent matters judge, specifying all works he intends to carry out, to enable the court to assess their lawfulness and appropriateness. The tenant must take out insurance proportionate to all risks that may arise from the works he performs, and the costs of those works themselves, and the cost of restoring to their original condition those parts of the building damaged by such works, without having the right to have recourse against the owner for recovery of those costs or any part thereof, either during the tenancy or upon its termination. The value of improvements resulting from the works referred to in this paragraph shall not be included in the calculation of recovery compensation.
The tenant subject to the provisions of this Law who acquires ownership of the premises he occupies shall be exempt from:
The tenant who vacates the leased premises during the extension period in accordance with the provisions of this Law shall benefit from the exemptions provided for in the preceding Article in respect of the premises he acquires.
Subject to the dates set for the release of lease contracts as provided for in Article 15 of this Law, priority in the granting of residential loans shall be given by both the Housing Bank and the Public Housing Corporation to tenants subject to its provisions.
Lease Contracts for Non-Residential Premises
Pending entry into force of a special law regulating the relationship between the owner and the tenant under these contracts, lease contracts for non-residential premises concluded before 23/7/1992 are extended for one year from the date of issuance of this Law. During this period, the rent shall increase from the date of entry into force of this Law and shall increase annually by a rate equal to the average inflation rate for the past twelve months according to the official index published by the Central Statistics Administration in the preceding year, provided the increase does not exceed five per cent (5%).
7. The first paragraph of Article 38 before its amendment by Section «First» of the Sole Article of Law No. 176 dated 2020/05/13 read as follows: «Pending entry into force of a special law regulating the relationship between the owner and the tenant under these contracts, lease contracts for non-residential premises concluded before 23/7/1992 are extended until 31/12/2018» (it is noted that this paragraph had already been amended by Law No. 111 dated 30/11/2018, which amended Article 38 of the law enacted by operation of law No. 2 dated 28/02/2017 (amendment of the Rent Law), thereby extending the contracts referred to in that paragraph until 31/12/2019).
8. To avoid repetition, the above-mentioned amendment applies in substance to the first paragraph of the said Article 38, which contained the amendment as worded, leaving the second paragraph of the Article for use, generalisation, and personal reference; correction accordingly made.
9. Law No. 2020/176 incorporating this amendment shall apply from 1/1/2020, as stated in Section «Second» of its Sole Article.
The following shall benefit from the extension upon the death of the tenant or his abandonment of the leased premises: First: With respect to premises leased for commercial or industrial purposes:
In accordance with the provisions of paragraphs (a), (b), (c), (e), (f), and (g) of Article 34 of this Law, the tenant's right to extension in non-residential premises shall be forfeited if he has not caused a change or modification in the intended use of the leased premises as defined in the lease contract.
The owner of real property leased for non-residential purposes shall have the right to recover the leased premises in accordance with the provisions of paragraphs (b) and (c) of Article 32 of this Law, and the owner shall be liable, in addition to the compensation specified in that Article, for special compensation for the losses and damages suffered by the tenant as a result of eviction (such as goodwill, loss of clientele and goodwill, business interruption losses, relocation expenses, and the like). The provisions of Article 33 of this Law relating to additional compensation shall apply to the owner who has recovered his leased premises where the conditions thereof are met.
The rent shall be doubled once in the following cases: a- Where the lessor, whether a natural or legal person, owns buildings or a share in premises whose total actual rent amounts exceed ten times the rent of the leased premises he occupies. For the purpose of calculating these amounts, the spouse, the spouse's spouse, and the children residing with the tenant shall be deemed a single person, and the owner may not request this doubling from a single tenant or his successor under this Law more than once. The owner who has previously sought the equitable rent under Law No. 1992/160 and benefited from this doubling shall not benefit from the provisions of this paragraph.
Provisions Common to All Lease Contracts
Both the owner and the tenant may enforce the judgment ordering recovery. If the owner fails to pay the compensation due to him in the execution department, after being notified by it, he shall be liable for an additional compensation at the rate of two per cent per month of the compensation amount, non-reducible, calculated, collected, and enforced directly by the execution department.
The term «common expenses» as used in this Law means:
Unless there is an agreement making the tenant liable for all common expenses, the owner shall bear 20% (twenty per cent) of the common service and maintenance expenses, provided his contribution does not exceed 5% (five per cent) of the total rent of the premises benefiting from these services; the remainder shall be distributed among the units comprising the building, whether vacant or occupied by the owner or others. Expenses for renovating the external appearance of the building and common areas or their equivalent shall be chargeable where the competent authority orders such renovation. The area of each leased unit shall be taken into account when distributing the contribution shares among occupants. Any dispute arising between the parties regarding the usefulness of works, their value, or the distribution of contribution shares shall be resolved by the urgent matters judge in accordance with the procedures applicable before him, by an immediately executable order on the original.
The lessor may not refuse to provide the common services he was accustomed to providing and which were agreed upon in the lease contract as a fundamental element thereof. If such services include heating, cooling, or hot water, the lessor must provide adequate heating on a regular basis from 15 November to 31 March of the following year, and cooling from 1 June to 15 October of the same year. As for hot water, he must provide it throughout the year, all of this unless the contract contains a contrary agreement. If the owner fails without lawful justification to provide all or part of the agreed or legally required services, the tenant shall be entitled, after this is verified by an expert appointed by the urgent matters judge without any fees, to compensation equal to two months' rent, provided that the total compensation awarded does not exceed four months' rent in any single rental year.
The single civil judge shall have jurisdiction to hear and determine all rental disputes and all applications and defences related thereto, regardless of the amount of rent. The first hearing in rental cases shall be scheduled without being bound by time limits for exchange of briefs; a judgment at first instance in disputes concerning built real property leases subject to this Law shall not be open to any ordinary or extraordinary means of review other than objection within the limits of Article 468 of the Code of Civil Procedure, and appeal within fifteen days from the date of notification; an appellate judgment shall not be open to any ordinary or extraordinary means of review other than objection within the limits of Article 657 of the Code of Civil Procedure. However, an appellate judgment shall be open to cassation where there is a conflict between it and the first-instance judgment solely on the issue of forfeiture of the right to extension. This shall apply to appellate judgments issued from 1/1/1987, regardless of which law was applied in those judgments. The summary jurisdiction shall remain applicable under general law provisions to hear urgent and emergency cases that do not require a determination on the merits of the dispute.
The provisions of Article 847 and subsequent articles of the Code of Civil Procedure relating to enforcement of bonds and written undertakings shall apply to collect the rent due under lease contracts. The original lease contract may be used, accompanied by a certificate issued by the municipality or competent authority confirming renewal of the contract's registration. Notwithstanding the provisions of Article 852 of the Code of Civil Procedure, an objection shall not suspend enforcement unless the competent court orders otherwise, with or without surety.
In all cases of recovery and forfeiture of the right to extension, the court shall take into account the necessary expenses personally borne by the tenant for carrying out renovation works in the recovered leased premises, as well as the period that has elapsed since the renovation works.
10. The text published in the Official Gazette contained the word «al-mustathmir» (investor); correction accordingly made.
Notwithstanding any other provision, lease contracts relating to premises containing violations of building or urban planning laws shall not be deemed void unless such violations are irremediable under the applicable laws. However, in the latter case, the judgment ordering eviction of the tenant shall not be enforced except concurrently with the removal of the violation by the lessor, and in exchange for compensation paid to the tenant in accordance with the demolition recovery provisions set out in this Law.
Subject to Article 22 of this Law, actions filed before the date of entry into force of this Law shall remain subject to the provisions of the laws under which they were brought.
Miscellaneous Provisions
The tenant covered by the provisions of paragraph (d) of Article Seven of Law No. 539 dated 24/7/1996 and its amendments (Establishment of the Public Housing Corporation) shall be given absolute priority in subscribing to the rent-to-own scheme.
The details of implementation of the provisions of this Law shall be determined when necessary by decrees adopted in the Council of Ministers upon the proposal of the Ministers of Justice and Finance.
This Law shall be published in the Official Gazette and shall enter into force six months from the date of its publication.
- The draft law issued by Decree No. 7104 dated 3 January 2002, aimed at establishing the Rent Law as set out above, is hereby ratified with amendment. - This Law shall be published in the Official Gazette and shall enter into force six months from the date of its publication.