Tenancy & Leasing Provision in Oman

Tenancy Law, Lease Agreement Terms & Provision in Oman

  • Leased property which is given on lease has to registered before occupying it with respective Muscat Municipality.
  • A fixed tax of 5% of the total annual rent amount is payable by the landlord at the time of registration of lease agreement.
  • The Tenant abides himself to pay electricity and water bills, Municipality rates, sewerage service charges, and any other fees/charges that should be borne by the tenant. The provisions of this Claus should be adhered to with effect from the date of handling over of leased property to the tenant up to date of taking over the leased property back by the landlord, unless otherwise is mutually agreed in writing.
  • The non-registration or renewal of a lease agreement and/or the failure of payment of the fixed tax within one month from date on which it has been signed or expired concluded and entered into shall result in the lease agreement being considered legally null and void before any government authority in the Sultanate, in addition to imposing a fine equal to three times the fixed tax.
  • The Municipality tax that has been mentioned in the provisions of the Royal Decree No. (6/98) and its amendments, are a governmental debt that to be paid by the landlords or tenants as per the agreement and can be collected by the administrative confiscation
  • The tenant in bound to handover the leased property to the landlord on the expiry date of the lease agreement. He is bound to repair any damages that may result from the misuse in the property. The landlord is bound to undertake any maintenance / overhauling / restoration works required for maintaining the leased property in a condition consistent with the purpose it is rented for.
  • Other terms and conditions may be added to the lease agreement as mutually agreed by both parties provided not to contradict with Royal Decree No.(6/98)
  • If other party fails to comply to his commitments hereto prescribed, the other party shall have the right to rescind this provision.
  • The lease agreement can be renewed for a further period or more unless one of the parties advise the others of his wish to evacuate the property before the expiry of the valid period by at least 3 months or half of the period if it is less. The landlord may not ask evacuation of the property except in the cases and according to the provisions and procedures of the Royal Decree No. (6/98).
  • The tenant may not alienate this agreement or sublet the leased property to any third party whatsoever unless first party issues prior written approval.

  • Source: http://www.brokers-int.com/laws.html