Muscat: Tenants across the Sultanate can terminate their rent agreement as long as they serve any notice period required.
According to a legal expert, once the notice period is served, tenants can also ask for the return of their deposit, paid in advance under the provision of the agreement.
In a series of articles about Oman’s rules and regulations, entitled ‘Know Oman’, experts guide readers on their rights and responsibilities while working and living in Oman.
Speaking exclusively to the Times of Oman, a representative of Al Faqih and Co., one of the leading law firms in Oman, explained how to go about dissolving the contract and asking for the deposit to be returned.
“Before dissolving the contract, we need to look into what contract, commonly known as the tenancy agreement, has been made between the landlord and the tenant. If the agreement doesn’t mention anything about the notice period, the tenant could request that provision to be included, considering the situation these days in the country.
“With this clause in the agreement, it gives an advantage to the tenant as he/she can not only dissolve the contract after serving the notice period but could also demand the return of the cheques deposited in advance as security,” said Yasin Chowdhury, Head of the Corporate Advisory at Al Faqih & Co.
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The expert also said there would be no problem if, for example, the contract is for one year with a notice period of a month or two and both parties have agreed to leave early after serving it.
“In that case and under this particular provision of the tenancy agreement, tenants can ask the landlord for their deposit cheques back,” Chowdhury said.
He noted that tenants who have deposited guarantee cheques should not be concerned since, in some instances, the Courts in Oman have held that the return of the cheques - which were issued as a method for guaranteeing payment, and not as the actual basis for making the payment - cannot form the basis of a criminal case.
Chowdhury said that demanding the deposit cheques from the landlord is solely dependent upon the provision of the agreement.
“If the notice period is served within the contracted period of the agreement, tenants can claim their cheques for the months they didn’t use the property.
“However, if the agreement says that the tenant can’t terminate the contract before completing the agreed period ( according to what has been decided by the two parties) and it is a fixed term tenancy agreement, then tenants have to comply with it,” the expert said.
He added that: “If it is a fixed term lease agreement, and there is no way that tenants can terminate the contract early before the agreed period, then it would be very difficult for them to get out of the whole arrangement.”
Talking about the role of a tenant, in terms of leasing a property, Chowdhury said that he always advises tenants to register the rent agreements by themselves to ensure they have no problems.
“When tenants take a property on lease, it is the obligation of the landlord to get it registered with the Municipality. However, if the landlord fails to do so, it comes down to tenants to get it done, because if action needs to be taken against the landlord, the tenant will be in a better position and the municipality fee can be adjusted with the rent. Therefore, we always advise tenants to register themselves if the landlord didn’t do it to be on the safe side,” he added.
Al Faqih & Co. ([email protected]) is a premier commercial law firm based in Muscat consisting of barristers, consultants, and advocates with vast experience in corporate and commercial practice including labour and employment law in Oman.
The objectives of the firm are to provide a full spectrum of corporate and commercial legal services to a variety of clientele in an efficient, effective and timely manner. It has specialisation in litigation & arbitration, banking & finance, international trade, shipping & aviation, private equity, and foreign investment laws.