Back to laws

Rent

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.

Section 1

General Provisions

ARTICLE 1

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.

ARTICLE 2

Exceptions from the Provisions of this Law

The following shall be exempt from the provisions of this Law:

  1. 1)Lease contracts for agricultural land and the buildings appurtenant thereto.
  2. 2)Seasonal lease contracts for summer-resort and winter-resort premises.
  3. 3)Contracts by which employers provide their employees with residential premises free of charge or for a consideration.
  4. 4)Occupation of public State and municipal property.
  5. 5)Lease contracts for villas possessing the following specifications:
  6. 6)They must consist of one or more floors, be equipped to house a single tenant, have a garden, a garage, a heating system, and a dedicated system providing hot water, even if the tenant bears the cost of providing these specifications, provided that such specifications existed at the date the original lease commenced.

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.

Section 2

Lease of Residential Premises and Provisions of the Assistance Fund

Subsection 1

Special Provisions Concerning the Assistance Fund

ARTICLE 3

Establishment of a Special Fund for Residential Leases

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.

ARTICLE 4

Scope of Eligibility for the Fund's Benefits

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.

ARTICLE 5

Revenues of the Fund

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.

ARTICLE 6

Management of the Fund's Assets

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

Committee for Examining the Application of Provisions Relating to Payment of Increases on Rent Amounts

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.»

Amended 2014
ARTICLE 8

Conditions for Applying for a Contribution from the Fund and Required Supporting Documents

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:

  1. 1)It must be submitted within two months from the date of the initial determination or increase of the minimum wage, and within the same period before each subsequent extension year; failure to do so shall result in forfeiture of the right to benefit from the contribution.
  2. 2)The following documents must accompany the application:
  3. 3)A list of the names of the beneficiary's household members.
  4. 4)An employment certificate for each member of the beneficiary's household, issued by the competent authority, indicating the value of the salary or wage currently received by each as an employee, worker, or civil servant.
  5. 5)An income declaration for each member of the beneficiary's household who works on a self-employed basis.
ARTICLE 9

Calculation of the Beneficiary's Monthly Family Income

The committee shall examine the contribution application in light of the beneficiary's monthly family income and shall state its opinion as follows:

  1. 1)If the members of the beneficiary's household are employees, workers, or civil servants, the beneficiary's monthly family income shall be the total of the monthly incomes of each of them.
  2. 2)If one of the members of the beneficiary's household works on a self-employed basis, it shall fall to the committee to establish, by whatever means it deems appropriate, his monthly income, and accordingly the beneficiary's monthly family income shall equal the total of the monthly income of each of the beneficiary's household members.
  3. 3)The committee shall in all cases establish, by such means as it deems appropriate, the number and names of the beneficiary's household members, the monthly income of the tenant and each of those members, and shall on that basis calculate the beneficiary's monthly family income in accordance with this Article. Either of the two parties concerned may submit evidence and documents that assist in proving their case.
  4. 4)The committee may summon both the lessor and the tenant to be heard, by notice served on them in accordance with the Code of Civil Procedure, and must issue its decision within fourteen months from the date of submission of the application.
ARTICLE 10

Determination of Eligibility for the Fund's Contribution and Its Amount

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:

  1. 1)If the committee finds that the beneficiary's monthly family income exceeds three times the minimum wage, the contribution shall be refused as not being due, and the tenant shall be required to pay the new rent amount resulting from the application of the increases provided for in this Law, failing which he shall forfeit his rights in full, and the other provisions of this Law shall apply to him.
  2. 2)If the committee finds that the beneficiary's monthly family income does not exceed three times the minimum wage, it shall communicate its decision to the Finance Department in the area where the leased premises are located, which shall then pay the lessor the due contribution in monthly instalments over the extension years during which the tenant applied for the contribution, as set out below:
  3. 3)Case where the beneficiary's monthly family income does not exceed twice the minimum wage.
  4. 4)The committee shall determine by its decision the amount of the monthly instalment such that it equals the monthly rent and the value of the difference between the value of the new rent amount.
  5. 5)The committee shall communicate its decision to the competent Finance Department for the necessary action as set out in this item.
  6. 6)Case where the beneficiary's monthly family income exceeds twice the minimum wage but does not exceed three times that limit.
  7. 7)The committee shall determine by its decision the value of the difference, if any, between the monthly instalment amount such that it equals 30% of the beneficiary's monthly family income and the value of the new rent amount.
  8. 8)The committee shall communicate its decision to the competent Finance Department for the necessary action as set out in this item.
  9. 9)The contributions that the Fund is required to pay to the lessor shall constitute a debt owed by the Fund; the lessor may not invoke them for any reason or before any authority to prevent the tenant from recovering amounts previously paid by him as rent that were subsequently reimbursed by the other party.
ARTICLE 11

Continuation of the Tenant's Entitlement to the Fund's Contribution for Subsequent Specified Years

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.

ARTICLE 12

Penalty for Giving a False Statement or Declaration

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

Non-Admissibility of the Committee's Decision to Review Proceedings

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.»

Amended 2014
Subsection 2

Lease of Residential Premises

ARTICLE 14

Definition of a Residential Lease Contract

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.

ARTICLE 15

Extension of Lease Contracts and the Equivalent Rent Value

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:

  1. 1)Subject to the provisions of Article 20 of this Law, the equivalent rent value shall be determined in accordance with Article 18, either by agreement or by adjudication for the first extension year, and within the same period before each subsequent extension year; failure to do so shall result in forfeiture of the right to benefit from the contribution.
  2. 2)The rent due shall increase from the date of entry into force of this Law annually at a rate of:
  3. 3)15% fifteen per cent of the value of the difference between the rent in force before the entry into force of this Law and the equivalent rent value referred to above, for each of the first four extension years following the date of entry into force of this Law.
  4. 4)20% twenty per cent of the value of the above-mentioned increase difference for each of the fifth and sixth extension years, until the rent reaches the value of the equivalent rent value referred to in item (a) above by the sixth extension year.
  5. 5)The rent in the seventh, eighth, and ninth extension years shall equal the equivalent rent value referred to in item (a) above.
  6. 6)The lease shall automatically terminate at the end of the ninth extension year.
ARTICLE 16

Right of the Tenant Benefiting from the Fund's Benefits to Enter into a New Lease Contract or to Waive It

  1. 1)If the tenant is still in residence, he shall be entitled to request in writing from the owner, no later than three months before the expiry of the ninth extension year — failing which he shall forfeit his right — the conclusion of a new lease contract for a minimum term of three years at a rent equal to the equivalent rent value referred to in paragraph (a) of Article 15 above, provided that he proves within the same period that he holds a decision from the committee confirming that he satisfies the conditions for benefiting from the Fund's benefits in accordance with the mechanism provided for in this Law.
  2. 2)Such a tenant shall be entitled to waive his right to request the conclusion of a new lease contract and to notify the owner in writing within the same period referred to above of his wish to vacate the leased premises before the period during which he is entitled to a contribution paid on his behalf by the Fund in monthly instalments as set out below.
  3. 3)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.
  4. 4)To obtain the contribution, the tenant must comply with the following:
  5. 5)The tenant shall submit an application to the committee within the period referred to above for the contribution, free of all fees; submission of this application shall not suspend the time limit for payment of the rent increase resulting from the enforcement of this Law.
  6. 6)The following documents must accompany the application:
  7. 7)- A copy of the owner's letter notifying his wish for the tenant to waive the lease and vacate the premises.
  8. 8)- A written undertaking to vacate the leased premises and deliver them vacant to the owner within three months from the date of notification of the committee's approval of payment of the contribution, and to continue during that period to pay the rent due.
  9. 9)The committee shall decide, in light of the attached documents, on the amount of the monthly instalment and its due date, starting from the first day of the month following the actual vacation of the leased premises and its delivery, evidenced by a written declaration authenticated by both the owner and the tenant, or by the tenant alone before a notary public, up to the expiry date of the new lease contract.
  10. 10)The committee shall communicate its decision to the Finance Department in the area where the leased premises are located for disbursement of the contribution in monthly instalments on their due dates.
  11. 11)The tenant may assign these instalments to a financing lender of his choice, who agrees in exchange to pay the contribution amount in a lump sum; the loan given in respect thereof shall be deemed a residential loan and the tenant shall benefit therefrom from the exemptions provided for in Law No. 543 dated 24/7/1996.
  12. 12)If the committee finds that the tenant does not fulfil the conditions for benefiting from the Fund's benefits, his lease shall automatically terminate from the date of the committee's decision.
ARTICLE 17

Vacation of the Leased Premises at the Tenant's Request in Exchange for a Financial Contribution

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.

ARTICLE 18

Determination of the Equivalent Rent Value

On the determination of the equivalent rent value:

  1. 1)By agreement or by adjudication as the basis for the committee's decision in the event that the tenant requests from it a financial contribution from the Fund.
  2. 2)If it proves impossible to determine the equivalent rent value by agreement or by adjudication between the lessor and the tenant within the first three months following the date of entry into force of this Law, the lessor may follow the procedure below:
  3. 3)The lessor shall engage two experts from the list of sworn local experts in the political governorate at the court; one shall be an engineer or architect and the other a specialist in real-estate valuation registered in the experts' table.
  4. 4)The two experts shall draw up a valuation report on the equivalent rent value of the leased premises in accordance with the procedures set out in Article 19 of this Law.
  5. 5)The lessor shall, through a notary public, notify the tenant of the valuation report for the equivalent rent value; the tenant then has two months from notification of the report to either accept and adopt it as the basis for determining the equivalent rent value, or to submit a counter-valuation report by engaging two experts from the list of sworn local experts in the political governorate at the court, one being an engineer or architect and the other a real-estate valuation specialist in the experts' table.
  6. 6)The two experts appointed by the tenant shall draw up a valuation of the equivalent rent value of the leased premises in accordance with the procedures set out in Article 19 of this Law.
  7. 7)The tenant must notify the owner, through a notary public, of the valuation report prepared by the experts appointed by him within the two-month period referred to above, failing which he shall forfeit his right to object to the valuation sent by the owner or to obtain acknowledgement by means of a counter-report.

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.

Amended 2014
ARTICLE 19

The Report

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.

ARTICLE 20

The Percentage for Determining the Equivalent Rent Value

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.

ARTICLE 21

Liability of Experts

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.

ARTICLE 22

Recovery of the Leased Premises for Family Necessity and Demolition, and Documents Required with the Application for a Financial Contribution

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:

  1. 1)The application shall be submitted together with the following documents:
  2. 2)A copy of the determination of the equivalent rent value by agreement or by adjudication.
  3. 3)A copy of the actual tender, or deposit before a notary public.
  4. 4)The committee shall decide, in light of the documents, on the amount of the contribution that the Fund would have paid to the lessor on behalf of the tenant from the date on which the contribution became due until the end of the extension period, deducting therefrom what the Fund has already paid to the lessor by way of rent increases that arose on the rent under this Law, in addition to the amount of compensation that the tenant paid the owner in exchange for recovering the leased premises in either of the two cases provided for in this Article; the committee shall then communicate the balance to the competent Finance Department for disbursement to the tenant in equal monthly instalments starting from the first day of the month following the date of actual vacation of the leased premises and until the end of the extension period.
  5. 5)Where the leased premises sought for recovery for family necessity or demolition were leased under either Law No. 29/67 or Law No. 10/74 in buildings that were considered luxury buildings, the compensation due to the tenant shall be reduced by half.
  6. 6)The owner shall pay the compensation to the tenant either directly or by borrowing from any lender of his choice; the loan given to the owner shall be deemed a residential loan and the owner shall benefit therefrom from the exemptions provided for in Law No. 543 dated 24/7/1996.
  7. 7)Non-Lebanese tenants who do not own a private residence in a building shall be excluded from compensation.
  8. 8)In all of the above cases and in the event that recovery of the leased premises is requested during other extension years, the compensation shall decrease proportionally to the remaining period of the extension term at a rate of one-ninth (1/9) for each year elapsed of the extension period.
ARTICLE 23

Procedures for Recovery of the Leased Premises in Cases Other Than Family Necessity and Demolition

If the owner wishes to recover the leased premises for reasons other than family necessity and demolition, he shall follow the procedure below:

  1. 1)Notify the tenant in writing of his preliminary wish to recover the leased premises 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 remaining extension years.
  2. 2)Obtain the tenant's preliminary written consent to vacate the leased premises upon agreement on its value.
  3. 3)In no event may either the owner or the tenant invoke the preliminary consent issued by either of them for any reason or before any authority.
  4. 4)The owner shall pay the compensation to the tenant directly or by borrowing from any lender of his choice; the loan given to the owner shall be deemed a residential loan, and the owner shall benefit therefrom from the exemptions provided for in Law No. 543 dated 24/7/1996.
  5. 5)The owner must tender and deposit before the notary public in the area where the leased premises are located the compensation agreed upon with the tenant.
  6. 6)If the tenant consents to the tender and deposit, a notarised agreement on the vacation of the leased premises and its delivery vacant must be drawn up, and this shall continue for the agreed period from the date of the tenant's choice, during which the tenant continues to pay the rent due; the notary public shall 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 of the leased premises and its delivery, evidenced by written declarations from both parties or from the tenant alone before the notary public.
  7. 7)If the tenant fails to vacate in accordance with the provisions of this paragraph within the period agreed for vacating and delivering the leased premises vacant, the owner shall deem the tenant thereafter to be occupying the leased premises without lawful justification; 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, and the lessor may in that regard apply directly to the execution department having jurisdiction over the leased premises to order eviction by means of a deed accompanied by: a copy of both the notarised agreement and the tenant's statement on eviction, the actual tender and deposit before the notary public referred to above, the receipt for 90% of the compensation value, and this application shall be subject to the fixed fee.
  8. 8)Decisions of the execution departments taken under the provisions of this paragraph shall not be subject to any form of appeal except by way of objection.
ARTICLE 24

Compensation upon Recovery of Luxury Leased Premises under Laws No. 29/67 and No. 10/74

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.

ARTICLE 25

Tender and Deposit of Compensation before the Notary Public

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.

ARTICLE 26

Occupation of the Leased Premises Without Lawful Justification

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.

ARTICLE 27

Waiver of the Lease and Vacation of the Leased Premises in Exchange for a Financial Contribution

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.

  1. 1)The value of the contribution must be calculated after estimating the beneficiary's monthly family income based on the total of the monthly income of the spouses only, excluding all other members of the beneficiary's household.
  2. 2)The value of the contribution to be paid in monthly instalments as provided for in this Law shall equal the total of what the Fund would have paid in monthly contributions to the lessor on behalf of the tenant, as provided for in Article 10 and the following articles of this Law, had the tenant continued to occupy the leased premises, from the date the contribution became due until the end of the extension period referred to in item 1 of Article 15 of this Law.
  3. 3)Subject to the provisions of Article 10 of this Law, the monthly instalment amount in each extension year shall equal the monthly contribution that the Fund would have paid to the owner on behalf of the tenant, beginning with the annual increase that arises on the rent under this Law.
  4. 4)To obtain the contribution, the tenant must comply with the following:
  5. 5)The tenant shall submit to the committee an application for the contribution, free of all fees; submission of this application shall not suspend the time limit for payment of the rent increase resulting from the enforcement of this Law.
  6. 6)The application must fulfil the following conditions:
  7. 7)b-1- It must be submitted within a period not exceeding two months from the date of the owner's notification of his wish for the tenant to waive the lease and vacate the leased premises.
  8. 8)b-2- The following documents must accompany the application:
  9. 9)- A copy of the lease contract or any document evidencing the lease.
  10. 10)- A copy of the determination of the equivalent rent value by agreement or by adjudication.
  11. 11)- A copy of the letter notifying the owner of the wish to waive the lease and vacate the leased premises.
  12. 12)- A written undertaking to vacate the leased premises and deliver them vacant to the owner within three months from the date of notification of the committee's approval of payment of the contribution, and to continue during that period to pay the rent due.
  13. 13)The committee shall decide, in light of the attached documents, on the amount of the monthly instalment and its due date, starting from the first day of the month following the actual vacation of the leased premises and its delivery, evidenced by a written declaration authenticated by both the owner and the tenant, or by the tenant alone before a notary public, up to the end of the extension period provided for in item (a) of Article 15 of this Law.
  14. 14)The committee shall communicate its decision to the Finance Department in the area where the leased premises are located for disbursement of the contribution in monthly instalments on their due dates.
  15. 15)The tenant may assign these instalments to a financing lender of his choice, who agrees in exchange to pay the contribution amount in a lump sum; the loan given in respect thereof shall be deemed a residential loan and the tenant shall benefit therefrom from the exemptions provided for in Law No. 543/96 dated 24/7/1996.
ARTICLE 28

Payment of the Contribution Not Conditional on a Financial or Municipal Tax Clearance

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.

ARTICLE 29

Persons Entitled to Benefit from the Original or Extended Lease Contract after the Tenant's Death or Abandonment of the Leased Premises

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:

  1. 1)The tenant's spouse who was lawfully present in the leased premises before 23/7/1992, and those who succeed him.
  2. 2)His children who entered the leased premises with him at the time the lease commenced and who continued to occupy it without interruption.
ARTICLE 30

Fees

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.

ARTICLE 31

Assignment of the Lease and Sub-Letting

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.

ARTICLE 32

Cases and Conditions for Recovery of Residential Leased Premises

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.

ARTICLE 33

Cases of Additional Compensation to the Tenant

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:

  1. 1)If the leased premises were recovered for one of the two purposes referred to in paragraphs (a) and (b) of Article 32 of this Law and the owner uses them without lawful justification and contrary to the stated purpose within one year from the date of eviction, or does not continue to use them without lawful justification for at least three years.
  2. 2)If the leased premises were recovered for demolition and reconstruction pursuant to the purpose referred to in paragraph (c) of Article 32 of this Law, and the owner does not commence construction without lawful justification within eighteen months from the date of eviction of the last tenant, or does not complete it within a period not exceeding five years from the date of commencement of work without lawful justification, or if the owner uses the recovered premises for residential purposes or for his personal benefit or lets them to third parties during the period referred to above.
ARTICLE 34

Cases of Forfeiture of the Right to Extension and Eviction of the Tenant

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.

  1. 1)If the tenant assigns or sub-lets the leased premises, in whole or in part, without the lessor's written consent; in that case the sub-tenant or assignee must be joined in the proceedings.
  2. 2)If the tenant constructs a building elsewhere, or occupies or acquires ownership of a building that is vacant or occupied, suitable and habitable, of a standard comparable to that of the leased premises he occupies, in the same city or village, and where the tenant would not consider the leased premises for more than a month.
  3. 3)In that case, the spouse, minor children residing with the tenant, and the tenant's adult children who are his dependants shall be deemed a single person for the purposes of applying the provisions of this paragraph, unless any of the children is in a situation of family necessity as referred to in paragraph (a) of Article 32 of this Law, subject to actual residence within one year from the date of completion, acquisition, or vacancy of the building, and continued residence for a minimum of three years.
  4. 4)The provisions of this paragraph shall not apply where the tenant or any person deemed a single person with him acquires property for use as a commercial or tourist office or for the practice of a liberal profession and actually uses it for that purpose within six months of the date of acquisition and continues to do so for a minimum of three years.
  5. 5)If the tenant abandons the leased premises for one year without interruption, despite continuing to pay the rent.
  6. 6)Lebanese citizens employed or working in official Lebanese missions abroad shall be exempt from the provisions of this item.
  7. 7)If the tenant abandons the leased premises for six consecutive months starting from his own volition and with the owner's knowledge, as evidenced by the building, the lessor shall notify the tenant of the non-payment notice or of the option to continue, either at the tenant's address as known to the lessor in the building, or by registered letter or open-faced registered card with acknowledgement of receipt in accordance with the service procedures set out in paragraph (a) of this Article.
  8. 8)If the non-Lebanese tenant does not actually occupy the leased premises for six consecutive months despite paying the rent.
ARTICLE 35

Exemptions

The tenant subject to the provisions of this Law who acquires ownership of the premises he occupies shall be exempt from:

  1. 1)Waiver, mortgage registration, and mortgage release fees relating to the premises he occupies.
  2. 2)Stamp duties on contracts, documents, and transactions drawn up in connection with the purchase of the said premises.
  3. 3)The built property tax on the said premises for ten years following the date of purchase.
  4. 4)The owner shall likewise, in that case, recover all legal fees due on the condominium subdivision transaction, as well as stamp duties on all transactions and contracts carried out for that purpose, provided that he produces to the Ministry of Finance, within three months from the date of completion of that transaction, the documents proving that the premises were occupied by the occupant. The recovery rate shall be proportional to the share of residential units that were divested.
ARTICLE 36

Entitlement to Exemptions

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.

ARTICLE 37

Priority in Granting Residential Loans

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.

Section 3

Lease Contracts for Non-Residential Premises

ARTICLE 38

Extension of 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.

Amended 2020
ARTICLE 39

Persons Entitled to the Extension upon the Tenant's Death or Abandonment of the Leased Premises

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:

  1. 1)The tenant's heirs up to the third degree, or some of them, by agreement among themselves.
  2. 2)The tenant's partners whose partnership was established at the date of the lease contract or at an earlier date.
  3. 3)Those benefiting from the provisions of Article 5 and subsequent articles of Legislative Decree No. 1967/11 (relating to commercial enterprises).
  4. 4)In this case, the lease of the premises designated for the operation of the commercial enterprise shall be extended and shall transfer to those to whom that enterprise is transferred.
  5. 5)Premises leased for the purposes referred to in Articles 6, 7, and 8 of the Commercial Code shall be considered commercial or industrial premises.
  6. 6)Second: With respect to premises leased for the exercise of a liberal profession regulated by law:
  7. 7)The tenant's heirs or some of them, by agreement among themselves, provided the heir exercises any liberal profession regulated by law.
  8. 8)Any person to whom the leased premises have been transferred by assignment from the tenant or from his heirs, provided the assignee exercises any liberal profession regulated by law, and provided the assignment takes place, in the event of the tenant's death, within a period not exceeding two years from the date of death.
  9. 9)If the leased premises are occupied by more than one person practising a liberal profession and one of them dies and one of his heirs practises his profession, the deceased's partners shall succeed him in the lease on the same terms, in exchange for the heirs receiving compensation equal to ten times the deceased's share of the annual rent in force at the date of death.
  10. 10)Where the tenant abandons his partnership in the leased premises for any reason, his partners shall succeed him on the same terms.
  11. 11)Third: With respect to other premises:
  12. 12)The tenant's spouse, ascendants, and descendants, or some of them, by agreement among themselves, provided they practise the same profession.
  13. 13)The tenant's partners whose partnership was established at the date of the lease contract or at an earlier date.
  14. 14)Any person to whom the leased premises have been transferred by assignment from the tenant or from the heirs as referred to in item 1 above, provided the assignee practises the same profession, and provided the assignment is recorded formally before a notary public, in the event of the tenant's death, within a period not exceeding one year from the date of death.
  15. 15)The owner shall be entitled to double the rent in accordance with the provisions of Article 42 of this Law.
  16. 16)All persons benefiting from the extension pursuant to the provisions of this Article shall be jointly and severally liable to the lessor for the performance of their obligations.
ARTICLE 40

Forfeiture of the Right to Extension

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.

ARTICLE 41

Recovery of the Leased Premises

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.

ARTICLE 42

Cases of Doubling Rent Amounts

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.

  1. 1)With respect to elements of a commercial enterprise when it is leased, considered as such, and on which a goodwill assignment contract or a free lease contract is entered into pursuant to the provisions of Legislative Decree No. 1967/11, throughout the period of free management.
  2. 2)With respect to premises leased for the exercise of a liberal profession regulated by law, in the event of its assignment pursuant to the provisions of item 2 of Section «Second» of Article 39 of this Law.
Section 4

Provisions Common to All Lease Contracts

ARTICLE 43

Manner of Payment of Rent and Non-Forfeiture of the Tenant's Right to Extension

  1. 1)After the original contract has expired, and notwithstanding any contrary agreement, the tenant shall pay the rent monthly and in advance if the monthly rent exceeds half the minimum wage from the date on which that rent falls due.
  2. 2)The tenant shall not be deprived of the right to extension:
  3. 3)a) If he sent the rent instalments to the lessor by registered letter with acknowledgement of receipt within the statutory period to the lessor's place of residence.
  4. 4)b) If he deposited the rent within the statutory period before the notary public working in the district or city in which the leased premises fall within either's jurisdiction. The notary public shall notify the lessor of each authenticated deposit and its amount and due date.
ARTICLE 44

Enforcement of the Recovery Judgment

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.

ARTICLE 45

Common Expenses

The term «common expenses» as used in this Law means:

  1. 1)Common service expenses, namely:
  2. 2)Expenses of consumption or production of electricity, attributable to the caretaker's accommodation, the lift, and other common areas in a subdivided building and their equivalent in a non-subdivided building.
  3. 3)Expenses of supplying cold water, including water drawn from artesian wells, hot water, heating, and cooling.
  4. 4)The caretaker's wages at the minimum wage level, plus increases including increments, social security, statutory indemnities, contributions due to the National Social Security Fund, and end-of-service indemnity; the housing allowance shall not be included in the wage calculation.
  5. 5)Maintenance expenses, namely:
  6. 6)Expenses for maintenance of the building, road, painting, and repairs to water, cooling, and heating systems and their common extensions, the lift and its insurance with one of the insurance companies.
  7. 7)Re-equipment expenses, namely:
  8. 8)Expenses for re-equipping the building with machinery and equipment that provide common services; expenses for renovating the external appearance of the building and common areas or their equivalent shall also be classified as re-equipment expenses.
ARTICLE 46

Proportion of Common Expenses to be Borne by the Owner

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.

ARTICLE 47

Lessor's Refusal to Provide Common Services

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.

ARTICLE 48

Advance Payment

  1. 1)The lessor may request from the tenant, once per year, an advance on account to cover common expenses equal to 75% of what the tenant paid in the preceding year; in that case the tenants shall be entitled to appoint one of them to supervise the expenditure of this advance.
  2. 2)The lessor must draw up annually a detailed account of the expenses and their distribution between himself and the tenants, indicating each party's contribution share, and communicate it to them; each tenant shall have the right to consult the documents evidencing these expenses and to request a copy thereof at his own expense if he so wishes, in order to challenge their accuracy.
  3. 3)The tenant's delay in paying the advance or his due share of the annual contribution after the final accounting shall be deemed equivalent to a delay in paying rent instalments, and shall produce the consequences set out in paragraph (a) of Article 34 of this Law, provided the notice is accompanied by a copy of all documents evidencing the expenses.
ARTICLE 49

Non-Common Repairs

  1. 1)Notwithstanding any prior provision or agreement, the tenant shall bear the full cost of non-common repairs specific to the leased premises.
  2. 2)Any written agreement concluded between the occupants of three-quarters of the units designated for lease or occupation by the owner to exempt the owner from performing all or part of the common services shall be binding on the owner and all tenants.
ARTICLE 50

Rental Disputes

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.

ARTICLE 51

Collection of Rent under Lease Contracts

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.

ARTICLE 52

Renovation Expenses

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.

ARTICLE 53

Lease Contracts with Extinguishing Rent

  1. 1)A lease contract with extinguishing rent means a contract by which the owner of real property authorises another person to erect structures or buildings on that property at his own expense in exchange for exploiting them for a period of time in consideration of rent amounts fixed in the contract.
  2. 2)Lease contracts with extinguishing rent concluded from 23/7/1992 onwards shall be governed by their own provisions. The same applies to lease contracts entered into by the investor with third parties for the structures or buildings, provided their term does not exceed the term of the original contract.
  3. 3)Lease contracts with extinguishing rent concluded before 23/7/1992 shall be extended for three years from the date of entry into force of this Law if the original term had expired before its entry into force. If the original term had not yet expired, it shall remain valid until that term ends.
  4. 4)Lease contracts concluded between the investor and third parties before 23/7/1992 shall be subject to the provisions of this Law.
  5. 5)If the investor occupies the building or any part of it and such occupation dates from before 23/7/1992, the investor shall be deemed a tenant and the provisions of this Law shall apply to him.

10. The text published in the Official Gazette contained the word «al-mustathmir» (investor); correction accordingly made.

ARTICLE 54

Lease Contracts for Premises Containing Violations of Building or Urban Planning Laws

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.

ARTICLE 55

Actions Filed Before the Date of Entry into Force of 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.

Section 5

Miscellaneous Provisions

ARTICLE 56

Absolute Priority in Subscribing to the Rent-to-Own Scheme

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.

ARTICLE 57

Details of Implementation of the Provisions of this Law

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.

ARTICLE 58

Entry into Force and Publication of this Law in the Official Gazette

This Law shall be published in the Official Gazette and shall enter into force six months from the date of its publication.

Other Articles · 1

ARTICLE Sole

Ratification of the Draft Rent Law

- 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.