REALWorld Law

Commercial leases

Termination by a third party

Can a lease be terminated by any third party, eg the government or a municipal authority? If so, how long does this process take? Is compensation payable and, if so, who pays it?

United Arab Emirates - Abu Dhabi

United Arab Emirates - Abu Dhabi

The Executive Council can pass a law dealing with any property that it needs to acquire for the purpose of ‘public benefit’. The property should only then be expropriated in return for ‘just compensation’ and in accordance with the provisions of the applicable law passed by the Executive Council. This would also deal with any third party interests over the property in question and the termination of any leases. Whether compensation would be due to lessees would be dealt with in the applicable law.