The Chairman of the Public Utilities and Environment Committee in the House of Representatives, Representative Hamad Al-Kooheji, submitted a proposal for a law to add a new article to the real estate lease law promulgated by Law No. 27 of 2014, by adding a new article No. 38 bis
The proposed law stipulates the addition of a new article, stating that: “The leased property may not be evacuated in any case because the tenant is unable to pay the rent in the exceptional circumstances the country is going through and in which the competent authorities decide to suspend or stop work in the public facilities of the state to protect security Public or public health, provided that the court determines the method of paying the late rent in favor of the lessor and the installment periods according to the financial situation that the lessee proves before the court.
In turn, the presenter of the proposal, Representative Hamad Al-Kooheji, said that the proposal for a law came to protect many categories of citizens, as the amendment will significantly contribute to protecting the parties to the commercial relationship between the lessor and the lessee, especially in the exceptional cases that the country may be exposed to - God forbid - whether these are Security or health conditions, which may affect the tenant in fulfilling the payment of the financial dues agreed upon by the lessor.
Al-Kooheji added that the law, given the importance of housing in society and the effect of its stability on the family in the Kingdom, the legislature regulated real estate rental issues in Law No. 27 of 2014 and framed the relationship between the landlord and the tenant, and set the necessary controls to be observed.
He pointed out that the controls and rules were put in place in the face of normal circumstances, but in the absence of a legal treatment for exceptional circumstances that would add to the financial solvency of the tenants, which would prevent them from being able to pay their financial obligations for a period in these exceptional circumstances that the country is going through, pointing out that the amendment Legislation would protect the parties to the commercial relationship in a manner that achieves the public and private interest at the same time.
MP Hamad Al-Kooheji added that the crisis and repercussions of the Corona pandemic and health controls to protect citizens and residents from the spread of infection, revealed the absence of legal treatment for the tenant's inability to pay the lessor, as a result of the circumstances he is going through, whether his work is stopped or financial revenues decline due to health conditions, and this What could apply in the event of a general health or safety circumstance.