Commercial tenancy disputes on the rise

The Rental Dispute Solving Committee has resolved 70% of all the cases filed with it so far this year

Most of the complaints now being filed at the Rental Dispute Solving Committee relate to commercial properties, including offices and shops, an official said yesterday.

A crucial buff er between tenants and landlords, the judicial-power-holding Rental Dispute Solving Committee (RDSC) was established as part of an Emiri Decree in February 2008 and became operational in October 2008. “From January 1 to July 1, we have processed a total of 1,320 new cases, including both commercial and residential disputes,” the official told Gulf Times.

“Looking at the pattern, we understand that an increasing number of cases being fi led now relate to commercial tenancy,” he added.

He attributed this to the ongoing demolitions of commercial centres and shops in areas like Bin Mahmoud, Al Sadd and Old Ghanim, where owners want to raze buildings to give way to new properties.

As of yesterday, 4,139 rental payments were being deposited every month at the committee, located near the Muntazah Park.

“The majority of payments are (made by) commercial tenants depositing monthly rents, as more shopkeepers file cases against their landlords in an attempt to get a stay order or for other reasons,” he said.

Rental disputes related to residential properties, according to him, have actually come down, thanks to a considerable drop in rents since 2009. RDSC was established through the Decree (Law No. 4 of 2008) at a time of near-record inflation in the country.

In 2009, the committee registered a total of 2,830 cases, of which 15% were sent to the appeals court in Dafna.

“So far this year, we have resolved 70% of all the cases fi led in 2010,” the official said. Legally, the RDSC, comprising five hearing committees (one judge and two members each), must resolve disputes within three months of receiving a complaint, with only one extension (provided it does not exceed six months after receiving the request) allowed to be sought.

“Currently the hearings are off due to summer holidays but cases can still be fi led,” the official said.

It takes one day for tenants or landlords to file a case at RDSC, given that proper documentation was brought to the committee. The court section of the RDSC went on vacation on July 1 and returns after Eid-ul-Fitr during the third week of September.

“Cases that have been prepared in advance and are of urgent in nature can still be heard by a judge during the holidays,” the official said.

Each of the five panels takes a day of the week to hear cases. “Last week, 45 cases were heard and judgement given by the panels,” the official said.

As well as establishing RDSC, the Law No. 4 of 2008 also called for registration of all rental contracts in the country through respective municipal offices.

A change was later made in October 2009, when some provisions were changed through Law No. 20 of 2009, whereby RDSC was allowed to address all rent-related grievances regardless of whether the tenancy contracts had been registered or not, a major win for tenants in Qatar.