Non-registration of tenancy deals can pose risk to both parties

MUSCAT: Muscat Municipality has said that some real estate owners and tenants continue to follow illegal methods to avoid registration of their transactions, resulting in the loss of rights for both parties.
In a statement, the municipality said the tenancy contract guarantees the right of the tenant in several respects such as protection from any increase in rents before the expiry of the contract or every three years if the contract is renewed.
It also ensures that the rented apartment may not be vacated before the tenant is notified at least three months before the expiry of the contract.
For the tenant, the registration of contract ensures that the tenant does not transfer the property to another party without his/her consent. It gives the right to vacate the rented premises in the event that the agreed rent is not paid in accordance with the terms of the contract.
“Documented contracts give landlords the right to apply for late payment and evacuation in case of non-repayment, thereby ensuring the rights of the owners. It will also contribute in reducing the number of tenancy disputes and help regulate the rental market,” the municipality added.
“The irregularities that are detected in the market include signing of the lease contract for less than the real value of the property, lack of ownership of many rented residential buildings, tenants’ ignorance of the risk of not entering into leases. Such practices pose risk to both parties.”
The landlord also gets the right to seek compensation from the tenant in the case of any damage to the rented premises or additional construction without his consent.
Muscat Municipality recently signed an agreement with the Oman Investment and Finance Company (OIFC) to collect dues from the unregistered properties.