مجلس النواب المصري يوافق نهائياً على قانون الإيجار القديم

The Egyptian House of Representatives approved today (Wednesday) during the general session, the draft amendment to the old rental law, submitted by the government.

The draft law includes a report on a suitable transitional period before ending old rental contracts, amounting to 7 years for residential rental properties and 5 years for properties rented to natural persons for non-residential purposes.

The draft law also stipulates that the tenant is obliged to vacate the rented property and return it to the owner at the end of the transitional period, explicitly stating the cancellation of all old rental laws after the end of this transitional period.

The amendment to the law includes the termination of old rental contracts and the liberation of the rental relationship so that all rental contracts become subject to the provisions of the civil law according to the will of the parties, after the end of the transitional period specified by the law.

The draft amendment to the old rental law also includes a review of the rental value of units rented under the old law, so that the increase in the legal rental value for residential properties in distinguished areas is (twenty) times the current legal rental value, with a minimum amount of (1,000 Egyptian pounds), and (ten) times the current rental value for units located in medium and economic areas, with a minimum amount of (400 Egyptian pounds) in medium areas, and (250 Egyptian pounds) for units located in economic areas.

It also includes an increase in the legal rental value for properties rented to natural persons for non-residential purposes by (five times) the current rental value.

The amendments stipulated an annual increase in the rental value (for residential and non-residential properties) during the transitional period by (15%).

Below is the full text of the draft amendment to the old rental law, which was approved by the House of Representatives:

Article (1)

A draft law concerning some provisions related to the laws of renting properties and reorganizing the relationship between the landlord and the tenant.

The provisions of this law apply to properties rented for residential purposes and properties rented to natural persons for non-residential purposes according to the provisions of laws No. 49 of 1977 regarding the renting and selling of properties and organizing the relationship between landlords and tenants, and No. 136 of 1981 regarding some provisions related to renting and selling properties and organizing the relationship between landlords and tenants.

Article (2)

Contracts for renting properties subject to the provisions of this law for residential purposes shall terminate after a period of seven years from the date of its implementation, and contracts for renting properties to natural persons for non-residential purposes shall terminate after a period of five years from the date of its implementation, unless an agreement is reached for termination before that.

Article (3)

Committees for inventory shall be formed by a decision from the concerned governor within each governorate, specializing in dividing the areas with rented properties for residential purposes subject to the provisions of this law into distinguished, medium, and economic areas, taking into account

the following criteria and controls in the division:

(1) The geographical location, including the nature of the area and the street where the property is located.

(2) The level of construction, the type of building materials used, and the average sizes of units in the area.

(3) The utilities connected to the properties in each area, such as water, electricity, gas, telephones, and other utilities.

(4) The road network, means of transportation, and available health, social, and educational services.

(5) The annual rental value of the built properties subject to the provisions of the property tax law issued by law No. 196 of 2008, located in the same area.

A decision shall be issued by the Prime Minister regarding the rules and operating system of these committees.

These committees shall complete their work within three months from the date of implementation of this law, and the Prime Minister may extend the deadline for their work for one similar period, and a decision shall be issued by the concerned governor regarding the conclusions reached by the committees, which shall be published in the Egyptian Gazette and announced in the local administration units within each governorate.

Article (4):

Starting from the due date of the next monthly rent following the date of implementation of this law, the legal rental value for properties rented for residential purposes subject to the provisions of this law and located in distinguished areas shall be twenty times the current legal rental value, with a minimum amount of one thousand Egyptian pounds, and ten times the current rental value for properties located in medium and economic areas, with a minimum amount of 400 Egyptian pounds for properties located in medium areas, and 250 Egyptian pounds for properties located in economic areas.

The tenant or the person to whom the rental contract has been extended, as applicable, shall be obliged, until the inventory committees referred to in Article (3) of this law complete their work, to pay the monthly rent due following the date of implementation of this law at a rate of 250 Egyptian pounds per month, and the tenant or the person to whom the rental contract has been extended, as applicable, shall be obliged, starting from the day following the publication of the decision of the concerned governor stipulated in the last paragraph of Article (3), to pay any due differences, if any, in monthly installments over a period equal to the duration for which they were due.

Article (5):

Starting from the due date of the next monthly rent following the date of implementation of this law, the legal rental value for properties rented to natural persons for non-residential purposes shall be five times the current legal rental value.

Article (6)

The rental value determined according to Articles (504) of this law shall be increased annually on a regular basis by (15%).

Article (7)

Without prejudice to the reasons for eviction stated in Article (18) of Law No. 136 of 1981 mentioned above, the tenant or the person to whom the rental contract has been extended, as applicable, shall be obliged to vacate the rented property and return it to the owner or landlord, as applicable, at the end of the period specified in Article (2) of this law, or upon the occurrence of either of the following two cases:

(1) If it is proven that the tenant or the person to whom the rental contract has been extended has left the rented property closed for more than a year without justification.

(2) If it is proven that the tenant or the person to whom the rental contract has been extended owns a residential or non-residential unit, as applicable, suitable for use for the same purpose for which the rented property was intended.

In the event of refusal to vacate, the owner or landlord, as applicable, may request from the judge of urgent matters at the court located in the jurisdiction of the property to issue an order to evict the person refusing to vacate without prejudice to the right to compensation if applicable.

Without prejudice to the provisions of the second paragraph of this article, the tenant or the person to whom the rental contract has been extended, as applicable, has the right to file a substantive lawsuit before the competent court according to the usual procedures, and the filing of the substantive lawsuit shall not result in the suspension of the order of the judge of urgent matters referred to.

Article (8)

Without prejudice to the provisions of Articles (2) and (7) of this law, every tenant or the person to whom the rental contract has been extended according to the provisions of laws No. 49 of 1977 and No. 136 of 1981 mentioned above, before the expiration of the period specified for the termination of contracts in Article (2) of this law, has the right to allocate a residential or non-residential unit, for rent or ownership, from the units available with the state, by submitting a request accompanied by a declaration to vacate and deliver the rented property immediately upon the issuance of the allocation decision and receipt of the unit, with priority in allocation given to the most deserving categories, especially the original tenant and their spouse and parents from whom the rental contract has been extended.

A decision shall be issued by the Cabinet based on the proposal of the minister concerned with housing affairs within 30 days from the date of implementation of the provisions of this law regarding the rules, conditions, and procedures necessary for receiving requests or deciding on them, and arranging the priorities for allocation and the state agencies responsible for allocating the available units.

The agencies referred to shall present to the Cabinet, ensuring the identification of the residential units for the original tenant whose contract was initiated, as well as their spouse, prior to the implementation of this law by one year, and with a maximum period of the expiration of the period specified in Article 2 of the law.

In the event that the state announces available residential or non-residential units for rent or ownership, the tenant or the person to whom the rental contract has been extended shall have priority in the allocation of a unit, as soon as they submit a request accompanied by a declaration to vacate the rented unit referred to in the first paragraph of this article, taking into account the nature of the area where the rented unit is located in case of competition, and the announcement shall specify the controls, rules, and procedures necessary for allocation.

Article (9):

Without prejudice to the provisions of Article (2) of this law, laws No. 49 of 1977 regarding the renting and selling of properties and organizing the relationship between landlords and tenants, and No. 136 of 1981 regarding some provisions related to renting and selling properties and organizing the relationship between landlords and tenants, and No. 6 of 1997 amending the second paragraph of Article 29 of Law No. 49 of 1977 and some provisions related to the rental of non-residential properties shall be canceled as of the day following the passage of seven years from the date of implementation of this law, and any provision contrary to its provisions shall also be canceled.

Article 10:

This law shall be published in the official gazette and shall come into effect the day following its publication.