[Music] Good morning I'm Ahmed Elnaggar and this is Monday legal my guest for today is my colleague his name is Ahmed Mustafa Gabr he's a senior associate at Elnaggar and Partners. Good morning Ahmed good morning Ahmed thank you very much for finding a place on your very busy schedule that I'm aware of to come here and to talk to us about legal topics sure I would like to start by giving you a chance to introduce yourself but first can you tell us what's your coffee my coffee um the preferred one is the espresso uh the more it is strong the more I Fall In Love was it how many espressos you have per day per day from 2 to 4 depends on how busy am I that's a lot man can okay take care of your he can you please tell us a little bit about your uh legal AB bringing what how did you start with the law why did you choose Law School in the beginning well in the beginning um I had like a few options to choose between and um I choose the law because my father is a lawyer so I felt I'm in home after all and I will have a good Mentor to go through the entire process of the education I will be there will be more information about uh how things are going in the law so uh basically that was the the favorite part of studying law during the education it was good amount of knowledge information but still uh when you graduate and when you face the um the true life and and how things going on the on the ground not in the books is totally different and from there you gain experience I started with a governmental entity in Egypt for 3 and 1 half years then I decided to work as a we call it as a freelance lawyer in Egypt oh which government entity you work for it was the military I used to work for the military for 3 and a half years as a prosecutor so I used to work in a very private sector of law uh which is the military law so basically it's it's it's very private very private courts very private judgments and very private nature in itself you can't take it over and measure it to the general law that we're practicing day to day when I finished uh my recruitment I I started to pursue as a uh freelance lawyer I worked in the criminal sector for almost one year I got the chance to expand my experience and to pursue better career outside and that's why I flee to thee and the true experience actually started when when I landed to the uee I was very lucky um to work with all of the law firms and the private entities in the past 6 years in the UAE I've honored to work with a very very experienced mentors all the way until now I'm working as as I I could identify myself as a diversified lawyer I worked in the law firms and I worked in uh private sectors where I'm acting as an in-house councel or as a private legal adviser I had the chance to experience the law from the dispute settlement uh sector and from the creation sector where you're creating the dispute during the U drafts of the agreements of the contracts of the mutual understanding of the parties and that actually uh gave me the experience that I have right now and for sure notar and partners the past four years I'm so honored do do you mind if you telling us which university did you study and the past law firms and positions that you work for sure uh in my education I was honored to study in University uh of Alexandria uh college of law for 4 years then I graduated and um I decided again I graduated in 2014 and and uh I decided again to pursue studying in 2021 and uh I joined the University of sford Manchester UK and um I got my master's degree in 2023 uh in December this is from the educational part I worked with Min law firms in thee I worked with o legal for in a training position when I landed and uh I worked with Emirates Advocates that was the first unlimited contract I had I learned a lot over there I worked in very Diversified environment parment where I had to work on the intellectual properties in the litigation team in the corporate so I made a lot of a lot of connections there and then I shift it to uh some private sectors during covid so things were not the best but I've been jumping jumping jumping between many law firms that I was very honored to work with and then I joined the Naran Partners in 2021 uh in May all the way until now and I feel myself very lucky to work in a Naran partner we're very lucky to have you thank you so much it's the most Diversified environment I ever experien it so far because we are doing a lot of things that gives me a lot of experience in a very short period where I can feel confident about my approach to cases to advising clients to building a legal opinion or firm legal opinion that can help me and my client later on so that's it what's your focus right now what is the most uh area where you practice the most area I'm practicing at the moment is the um is the tency disputes we can say between agreements and between disputes uh this is the most common uh area for my client whether they are individuals or companies they still facing the same issue in tency whether they are taking um a tency contract as a residential or as a commercial there is a problem there is a problem during the draft of the addendum which considered as an integral part of the contract and and most of the investors or most of the um most of the individuals uh counting very very much on this addendum while this addendum have a lot of Secrets at the same time the issues that appears later on after incorporating contract ATT tendency contract whatever the nature is but I feel that this area have a lot of issues and have a lot of problems at the moment and this is why I'm trying to focus I can really assess the the needs of my clients in this area yeah one of the very common problems that we Face where or we see that our clients are facing is that they come to us after signing the contract and they come maybe after seven or eight month within the contract and say we signed a standard agreement that was provided to us by the re estate broker company who introduced us to the unit whether residential or commercial or even a warehouse that is given to us by the fre Zone Authority or or or so they didn't read it they don't actually spend enough time and they feel like that's a standard contract the landlord is not going to change anything in it it's not going to negotiate any part of this agreement is there something like this in the law I haven't read it I know very well the law and every time I get so shocked like why do you believe these things why do you think that there is a contract that is unnegotiable it's it's very strange of course I agree with you and unfortunately the client comes to you in a very very very critical stage in a very critical point where the contract is already registered it's valid and both of the parties are actually have the obligation to respect the contract terms whether it serves your interest or against so actually you are in the end of the tunnel and then you are trying to to find the way back unfortunately at this point the individual or the company who decided to get into this contract 7 8 months ago they didn't know that this contract is negotiable nothing in the world is not negotiable unless you're dealing with a governmental Authority or unless you are dealing with a bank in a credit card or in a loan you the one who needs but in the tency contract you need as much as the landlord needs as well he wants money and he wants a space simple so all terms can be negotiated whatever the term is as long as the negotiations Falls within a proper and reasonable able measurements and all of this falls under the laws and regulations in place because at the end of the day the last line of protection you have is what the law states not what you have agreed upon with the landlord so that's why before getting into a contract it's very advisable that you seek advice on on stuff that you don't know about if you reach this stage and you Deni the advice then I don't think um thinking otherwise later could be beneficial yeah many occasions as well that we face that the ad let's say the promises that were given to the tenant or even to the landlord in some occasions that I'm going to do this don't worry I'm going to do this it's doesn't really have to be put in writing we're going to do it and some verbal agreements that happen and even sometimes it it happened through a social media like I don't know WhatsApp group or a WhatsApp communication between the landlord and the Tenant things were promised but not mentioned in the contract yeah and have you seen any case where we could build the the the an evidence based on verbal communication or even written Communication in other mediums like uh social media or Whatsapp uh communication that is contradicting with the contract well actually yes a lot of times I've seen this and the issue is that the det tenant doesn't actually distinguish between the agent and the landlord there is a a huge difference between both of them the agent is just a third party who puts the two main parties together he'll take his commission and you will never see his face again unless the next year he will come back to you again approach you hey did you find the lease or you want me to assist you so during the 12 months whatsoever obligation is it's only yours you cannot claim that I was promised by the agent I was promised by the agency we have agreed me and the agency actually the agreement should done only between you and the landlord in this part if you agreed with the landlord on something verbally is the weakest evidence that we can stick to kind of like nonsense verbally it's verbally I promise you that by second month I will do this and then the second months he will come back to you if he decided to and he will deny or he will approve yes so it's 50 50% it's your luck if the landlord is honest enough to respect his word or to respect his verbal promise and if he's not that honest then you will suffer there's also a time element like for example I promised you something and later on we have agreed on something else that is contradicting to it and that is in writing so even if I don't deny the promise I gave you I maybe said yeah yeah I promised him this but then later on we have signed with different terms so I understood that he read the contract and he agreed to it so I don't think even denying is the element is there is a time difference between this kind of verbal promise and an agreed uh term that's mentioned in writing what about the WhatsApp communication and if there message or any other medium email for example for sure the WhatsApp communication emails and any written formula is taken into consideration however again we should measure what was promised in a written form was what was agreed open in the contract because at the end of the day the contract shall Prevail any other promises and shall Prevail any previous agreements and the contract is basically what all of these agreements promises negotiations and understandings between the parties have ended up too so basically the contract is the last exit from these negotiations and that's why it should be not only well drafted also were reviewed in the Emirate of Dubai the contract is being issued by the authority so basically the contract doesn't have that much options and that's why usually the tenant and the landlord goes to the addendum to the tenancy contract I can say that in the past three years I have never seen a single lease contract whether it's commercial or it's a it's a a residential that doesn't have an addendum the thing is the addendum itself in order to be enforceable it should be taken into consideration from the element of incorporation did it Incorporated on the same time of the incorporation of the contract is it an integral part of the contract it was decided later after signing the contract all of these elements can stand out the addendum to be a valid tool or invalid tool this is a very crucial part because again if you are counting on the addendum to um to to make sure that that this addendum is in your interest and it was well drafted and and and but you did not notice the procedural requirements of recognizing an addendum before a court or before an authority then the addendum will be invalid and if it's invalid again you will go back to the the standard terms of the contract the standard terms of the lease agreement which is very basic which is doesn't have much more information than the the the information of the parties the the the the least unit the U the amount the the security deposit and the period of the of the tenants there is kind of a um a space that is given as an option even in the standard contract for special terms and this is somewhere where a lot of uh uh points can be mentioned and within this you can put that there is an addendum that is part of the agreement and then you put the addendum with the full terms and conditions and so on 100 this is the incorporation this is the proper incorporation that you need to mention the addendum in the contract make sure that the both uh dates are are are the same signatures on both of the contract and the addendum and to submit both of them as one contract to the authorities which will be incorporated later so later on in case of a dispute or in case of disagreement the addendum can stand out and protect your rights as attainment and as much as you can put in it the law allow quite a big room of uh of of uh of agreement and special terms between the landlord and the Tenant and if they just regulate the early termination they agree on penalties if there's any bounce check or delay penalty on the on the payment of the of the rent installments and there is a big room just please read the contracts because it is very important for regulating the relationship between a tenant and the landlord 100% does the law specify special terms for residential and Commercial Properties or not I'm talking about the regulations governing the uh rentals tency this is a very very uh intelligent question because actually um it's common between the individuals and the companies we know that um the law issued in 2007 and the addendum in 2008 mostly used for the residential tency contract but very very few of the people that are not specialized in the law that are not doing law actually that who knows also that the same law applies to the commercial so basically the tency law number 26 and uh the the addendum in 2008 both of them are governing the residential and the commercial leas however to some extent where we only that that will be only concerning the professionals in the legal field who are actually working on the tency dispute we knows that also some of the Civil transaction law and the commercial transaction law some of the Articles also involved into the commercial lease due to the commercial lease nature it's a commercial nature between two entities also the landlord is an entity the the det tenant is an entity so the and and the usage of the of the of the unit itself is for commercial purpose so basically the commercial law will jump in the Civil transaction law will jump in and the main umbrella is the tency law which applies on both residential and Commercial tell us about the major differences between a residential tency agreement which is quite simple straightforward you find a template and you can work on it I don't advise to work with templates but you can to a certain extent r on templates for a tency agreement tweak a little bit in it and it's easy to formulate and my advice is not for the end customers or the end client my advice is for lawyers but about commercial properties when it comes to offices or uh warehouses or retail shops we've seen a lot big difference between these two different drafts because there're different regulations because the landlords are different as well whether it's a shopping mall or is a is is just a retail unit in a residential building in some areas in in the country or um a regulator or a free zone Authority that is leasing offices there's a big difference between these two can you please talk a little bit about that definitely so the residential uh laas agreement is is basic agreement between the landlord and DET tenants and doesn't have that much indications that this agreement is referring to something else but a residential unit a studio a villa an apartment or the usage of the unit is for residential but the commercial agreement from the the the the moment that you open the agreement start reading it you will notice you will realize that this agreement is for a commercial lease first of all some some marks in the agreement is referring to the nature of the lease in this agreement so basically if if we took in consideration the nature of the agreement it will be for a commercial use permitted use only is commercial use according to the activity that they have been agreeing open between uh the the the landlord and the um and the Tenant the the permitted use of the unit if it's an office then it should match what they have agreed upon and actually it should match what is permitted by the building itself because here some other regulations are trying to invade the agreement and you not only going to add to ad hire by the agreement you will also be obligated to follow what is regulated by the building management that you are in I can remember that I have encountered the president whereas Spa took an office not not actually an office it's a it's a it's a shop but um it's it's in into two sectors an office and a shop so both of them were for the use of spa and one of the uh one of the conditions is that the the the the tenant must notify the landlord within period of time that they have received the approval from the authorities to proceed and practice the spa activity to provide the landlord with a trade license that shows that the activity is a spa and then the landlord will allow them to proceed with their activity while the tency agreement started at the beginning of the year until April this is almost four months the theant couldn't actually provide the landlord with the uh requirements and that's why the tenant found out that the landlord is raising an eviction Nots against them and demanding an immediate eviction for the uh for the facility for failing to provide the requirements so from this incident we can say that there is some requirements that are additional to the tency contract itself so it's not only about the tency contract that starts in and ends at no actually it's the period of the time is very important but still you will not be able to enter the facility to enter the unit to enter the the the shop the retail the warehouse unless you are you're met the conditions that was agreed with the land Lord this is one of the key differences between the residential and the commercial lease agreement that I would advise before entering into a commercial lease agreement you must know if this ER property is will allow you to practice your activity without any conditions or there are conditions to enter the property so to make it easy you can have the agreement you will pay and yet you can't start the activity because you don't you are not meeting the the the conditions or the requirements that you agreed uh with the landlord this is one thing second is the period the period in the residential is in Dubai in the Emirate of Dubai is one year and the Emirate of sh is 3 years we can see differences in the in the in the Abu Dhabi also uh it takes it takes more Less Than 3 years but more than one year there is like a period which is between 1 to 3 years in the residential units but in the commercial lasers usually not Les not less than 3 years up to 10 years so also the period there are a lot of differences between the residential and the commercial Le in terms of the period there is no maximum usually in the commercial however um yeah I understand very well that not there's not a commercial operation that would like to change their location every every year or every other year most of them that they when they start they would like to sign longer period I I think even less than 5 years makes no sense for a commercial operation to to sign a lease because they would like because the address is quite uh important to to their clients or to their operation I understand that a lot of companies are even working on a remote basis but maybe the smaller companies but when it's a an operation that have like I don't know five to 10 employees or attend to the office every day I I can imagine that they would like to change the location every every year or every other year because the stability is part of the commercial operation 100% it's very it's very crucial for them to have a stable place to have a landmark this is our place we located here and when they decide to shift I think a lot of wasted fees are being paid to the marketing again promote where we have located so we were there and we are located there because of a commercial lease agreement that we couldn't finalize for three more years or for another term of agree of uh of tenancy so this is very important actually the period part of it as well I I believe is the investment that the companies do because when you go into a residential property you basically have several rooms a kitchen a balcony and and mo the big investment in a residential property is basically the furniture that you put in but when you go into offices every company have their own requirements when it comes to meeting room or how many cubicles or how many partitions so you find a lot of companies investing in the office space this investment is is is becomes a challenge later on if they want to move from one office to the other because that's a complete loss if the uh if they keep moving have you seen a lot of conflicts in terms of the conflict between landlord and the Tenant for um the value of the uh fit out or the investment that the company did or they don't want to leave because they have created something completely nice or completely different from what they received and the landlord is basically asking them in the terms and conditions of the contract it says that you have to return the unit into the original state which is shell and core for example yeah 100% this is one of the most common conflicts between the landlord and the tenant in the commercial teny is the fit out so um of course it's a it's a condition that you need to return the unit in the same uh uh condition that you have received it to make sure that the unit is in a clean and fit uh condition and nothing is affecting the the general view of the unit and how the unit looks like so if you receive the unit that is painted in white color you need to turn it in a white color no matter is your decoration or your design and I think that the commercial companies or the the the the ideology of the commercial companies is that we will put in the fit out an x amount we know that after 3 4 years we will demolish all of this but this x amount will give us the image that we are looking for and that will bring us clients and that will be a reason of higher income uh so basically from the landlord if from the tenant if you if you if you allow me to use this decoration constantly within the entire period of the lease agreement we are friends and I have no problem with you but the problem arise when the the tenant or already ba like let's say a million durhams for the fit out work and it's um the the the the early quar of the tenancy agreement and then he finds out that any eviction notice for renovation from the landlord I mean he's he's toen like seriously I mean you should have this is kind of a risk if you sign a one-year lease agreement for an office and you go through all the fit out 100% cost and so on and you do not put it or regulate it in the agreement itself what's going to happen in this case you can be paying the cost of the renovation leaving the office but extra cost for demolishing and removing and cleaning the office returning it to the U conditions exactly so basically one of the most important terms that needs to be added to the addendum is that because this is actually is um is a compensation between both parties it's it's a mutual agreement between both of them and the law did not prevent agreeing otherwise on this part because this part can find its roots in the Civil transaction law not the tency law so the tency law provides the guarantee to the landlord that he will receive the unit again as he provided to the tenant but it doesn't guarantee to the tenant that the landlord will compensate him in case the landlord decided to demolish the decorations due to a renovation due to um that the the landlord will sell the units a lot of disputes arise from here here and if there is one term that both of the parties agreed that upon the the determination of this agreement the early termination which occurs from the landlord side the landlord will compensate the tenant with x amount this x amount is an agreed amount between the landlord and the tenants doesn't require Court verdict and doesn't require any interfere from any jurisdiction this is an agreed term between the parties that will grantee two things the first thing is that the tenant will have the full period of the contract no matter the the the rental value of the same units in the same area or the same plot is being doubled or trebled the landlord cannot uh force him to to to uh to EV the unit for any reason whatsoever it is because the landlord knows that he will or they will pay to the tenant what what was paid in the fit out works and the second thing is that the tenant will practice his activity during the 3 five 10 years the term of the contract while his mind free he's he's a stress free he will not uh he he will not be fearing this uh concept of okay I will not push that much money in the in the in the decoration because I'm afraid that tomorrow or after two months I'll find an eviction notice and then I will have to go to the court to fight all the way 5 six months to receive a compensation that will be decided by the court at the sole discretion of the judge which might goes beyond the fit out works or way below the the fit outworks and actually it's always going way below the fit outworks considering the det tenant have used the fit outworks for quite some time for six seven months so if you paid 1 million you need to pray to receive 300,000 so this is the issue this is very important part and it should be taken in consideration always whenever whenever we see a conflict between the landlord and a tenant whether in commercial or residential and mainly happen in residential that the company start by trying to negotiate with the landlord and then the landlord side just stick to the contract and say whenever of course it's to their favor stick to the contract these are the terms and conditions this is what we agreed on this non flexibility creates a conflict or creates a problem that might go work in some other occasions we see that the tenant especially on the commercial properties when it's an office or a small Enterprise in general even a a warehouse or or a factory that we see upon the failure of the project or a failure of the business they tend to escape they just leave the office as is they close the door there might be some furniture inside and they leave and the landlord now is not able to reach out to the tenant and at the same time not able to use the unit and cannot enter the unit this we have seen in court many times but I would like to have your advice to both sides what what should they do if a situation like this happen in this situation um if I'm on the landlord side leaving the unit without any without any notice will lead that you will not be able to Bay me on time so basically what you have bed that checks will all be returned for insufficient funds or for any other reason close the bank account you decided to close the bank account and you decided to liquidate the company and leave the country and while leaving all the responsibilities which is the lease agreement one of them behind your back as a landlord I will simply request the the the court to EV the tenants for not baying me constantly two months and then I will receive a verdict to evi the tenant and then also I will request the court at the same case to execute whatever inside the unit of furniture or any movable items that could be sold and pay my H due amounts and then I will cancel the tency contract and then I will proceed with another tenant at this situation there will be an execution file against the company and you will pursue the company at this stage that the owner of the company will not be able to move many many much around like he will not have more choices but to pay you the penalities the payment of the due amounts of the rental uh amount and what whatever is the court put in consideration against this company as a tenant so from the landlord side it's it's actually a benefit it's actually something good that the landlord at the end of the day will be able to to get the money and to get the unit are you sure because maybe they get the verdict but they cannot get the money well the movables the movables the furniture can pay off but indeed the the unit is way more important than the the rental value stop the bleeding exactly I need I need a first aid I need something to or right the unit has been two months there is no income and I want in the third month an income so that I can proceed my my activity as owner of units and landlord the landlord will not be that much damag it at the end of the day but if I'm in the tenant side I will never advise the tenant just to shut down everything and leave at least the tenant is a commercial entity and the Tenant can take advantage of the commercial law while the tenant can show an insolvency at this moment and the Tenant can stand before the court requesting the court to terminate this obligation which is the tency contract because it's an over obligation the tenant cannot meet the requirements of this obligation which is the payments basically as a commercial commercial tenant he is subject to insolvency he is subject to be in a huge obligation that affects the the smooth income process as a commercial unit uh so being being being a commercial or being a company in a commercial Le is actually an advantage to the tenant not to the landlord because again simply instead of closing everything and run away from the country and your company will be will became insolvent and then you will have to leave the country there might an execution against you personally you can solve sort this out either with the landlord directly by negotiating or through the court the court will assist you and the court will help you because you're a commercial entity you're not an individual in a residential contract you're commercial entity you might have at some point a lot of obligations that exceeds your financial capacity and at this time you will not be uh you will not be subject to penalities and it's your fault and and and the you the government have stipulated many way out to the commercial entities that feels that the obligations became over than their capacity they can't hold anymore for example I have a client who have a problem in the same situation and they can't make a good Revenue so instead of closing everything leave the country and and and they decided to to put a full stop to this uh situation by negotiating the landlord and unfortunately the landlord was not not actually helpful at all and he's he he he doesn't want to show any Mercy under commercial terms to the uh tenants so the landlord refused giving us no choice but go to the court and claim that we are not capable of B fulfilling the obligations exactly because it it became a lot and by this I mean by going to the court I mean you need to the to go to the court prepared you need to have the the financial reports that shows that you are not making any money you apply for insolvency insolvency and uh I I want to uh cancel the current tency contract based on these merits all of these merits at the end of the day I can say that many many many uh judgments were in the favor of the tenants in the commercial entity many judgments have dissolved the tenant contract between both of them however going back as a landlord I still can Su the tenant before the court of the Civil uh matters for the compensation for this tiny period of time which is 2 three months between the insolvency and the final judgment as my unit was under the dispute in the court and under the tenant named by virtue of the tenancy agreement you can see two to three months of compensation because before the RDC you will be brought as a respondent but before the court of the Civil matters you will bring the tenant as a respondent to respond your claims that he have caused you damages due to the UNP payment of the of the tenant which will be relieved by the RDC yeah I see I see this balance between the regulations here protecting both sides as long as the unit is being used or being occupied or not being used by the landlord to generate revenue from the rent uh they would be compensated but at the same time it allows the tenant a way out in case there's a conflict or there is a financial situation where they cannot fulfill their obligation so I I can imagine that this balance is uh is of course um providing a little bit of fair um situation whenever it comes to conflicts in this regard absolutely speaking of commercial contracts we have seen a lot of contracts especially with shopping malls I mean Dubai and the UA in general is very famous of retail spaces with with big shopping malls and famous shopping malls in nature of these Arrangements is that the shopping mall is putting a very rough very difficult terms in the commercial agreements in some occasions you as a retailer you have no choice of a location inside the mall you just get a designated space of course there will be an indication during the negotiation that you will be in a specific area in the mall but legally and mentioned in the contract that you don't have much control where you will be situated inside and the the mall will have the power to move you from time to time or even to terminate the agreement while the retailer doesn't have the same right of course it depends where are you in the food chain if we can say it like that if you're a luxury brand that the the mall is so much interested into bringing you into the the space or not but we see that the contract are very difficult to prove and i' I've seen cases where a big retailer in I don't know in fashion industry and the management of the mall just decide to shut them down for a period of time for renovation or because of there is a water leakage and so on and so forth but in some other occasions it's just for renovation of a certain area and there's not much that the retailer can say and there will be a big loss because there renovation of the retail unit inside the shopping mall takes a lot of cost and of course being well-known retailer or even not so much in the luxury industry or just I don't know a food truck that have uh benefited for a few years in from the certain foot count on the shopping mall and uh being existing next to another shop uh have brought them a lot of business and being moved or being shut down for a while can have a significant uh impact Financial impact on these companies what is what what's your opinion on the court conflicts that come from compensation of these uh fit outs or or even loss of revenues because of a landlord decision which is the shopping mall in this example to shut down an area or to move them around absolutely this is also very common uh conflict between big retailers and small to medium business I would say the the famous Goot of bck your battles wisely you cannot be um small or mediumsized uh commercial entity that wishes to um enjoy a huge Mall facilities most probably you will be under very very very tough uh terms and conditions that will govern the contract um as you as you said and at the end of the day uh the resources of the retail or the mall are end less and this is what actually happens there one of the incidents that I have worked on was actually encountering the same situation same scenario after 8 months of a three years contract the tenant found an eviction notice for the for the reason of renovation basically what happened is that the mall decided to terminate the tency contract for the renovation uh reason while at the end of the day the mall couldn't provide an Evidence that this unit needs a Innovation and the evidence are usually um strict and pre-approved by the court and everyone knows what are the uh the evidence that this unit needs a renovation or not but at the end of the day big malls and big retailers doesn't actually measure the things from this point of view they measure the things from a different point of view which is we have a lot of resources we will pay you out you will get out once we decide so it depends on your weight it depends on what exactly well how how how does the court see it because there will be a significant financial loss 100% and here it comes again the the Riots of the commercial entity which is a tenant um the court will preserve their rights the the renovation although um it was agreed or not in the in the in the commercial tenancy contract it's very important to notice that you are Contracting with a huge Retail Group so you don't have that much of negotiation room and you just decided to be there to locate there for a reason you need truly to pick up your battle wisely when you decide to go there you're building an 80% chance that you will be evicted before the end of the uh of the lease agreement and also another uh companies and Commercial entities are are not being evicted and they renew for for a period and another and another but we're talking about a possible scenario that you can face in this case you really need a financial capacity that can help you to reach a fair compensation from the competent Court in such cases because at the end of the day it's the decision of the retail it's the decision of the of the group you will have to sign an addendum of 40 to 50 pages which you will not be able to digest all of it and you you you most probably will end up with either giving it to the professionals to say an opinion about it or you'll just take the risk because you just want to be there you want to exist there and if you took the risk then actually you need to take all the way so either you will continue your lease period you will pay your rental amount and you will gain benefits or you will be eved in six months in one year in one and a half year for a reason that God only knows but you you will not know the reason or the actual reason behind this notice but at the end of the day again the court will preserve your right as a tenant with a minimum loss of 25 to 40% of what you have pushed as a capital to establish this facility for the period of the tency contract so the fit out works again if it's not agreed within the endium of the of the contract then the the the expenses that you have pail to do all of the fit out Works will not be fully compensated it will will be compensated according to the sole discretion of the court so here is one of the loss points another loss point you will change your location yes we 6 months ago we opened here we did marketing campaign and we have pushed a lot of money to to to to bring attention that we are located here but then after 6 months we're no longer here pick up your PS wisely yeah on on this note also I um I face this a lot when it comes to advis in clients sometimes we seen that they spend I mean they don't have enough documents that we can provide to court that talks about expenses so they have done as you said marketing campaign towards this location they have done spending on the activation of the location Itself by uh bringing entertainment or ushers or I don't know uh a marketing an event uh company they spent a lot of money on on the renovation of the office with whether they're in materials or in professional work but they don't have enough contracts and they don't have enough receipts to what they spend and everything that we cannot prove in in front of Court uh in writing for expenses is very very difficult to claim back for sure so um with this note Ahmed I thank you so much for coming and for being part of Monday legal and for all the knowledge you share with us thank you so much it's a pleasure to me and I'm honored to uh be hosted in Monday legal thank you so much thank you this will be your do from Monday legal see you next week

Episode 17: Lease Agreements: Everything You Need to Know with Ahmed Gabr | Monday Legal

1 years ago

Get ready to level up your rental game! Episode 17 is now live on YouTube.

Our next guest, the Real Estate Expert Ahmed Gabr, Senior Associate at Elnaggar & Partners, brings a wealth of knowledge about UAE lease agreements. Together with our host, Ahmed Elnaggar they will discuss contract myths, such as the negotiability of all terms and the validity of verbal agreements as evidence in real estate cases. They will compare commercial and residential agreements, providing valuable insights for both landlords and tenants.

But wait, there’s more! Ahmed Gabr and Ahmed Elnaggar will offer practical tips for landlords on what to do if a tenant escapes their legal obligations and for tenants on how to avoid negative situations in case of business failure with a valid commercial contract. They will also delve into the pitfalls of commercial contracts between retail shops and shopping malls in the UAE.

Don’t miss this episode—watch now!

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