Implementing Regulation of the Law of State Leasing of Real Property and its Eviction - 1429

Chapter 1: Conditions of Leasing

Article 1

With due regard to the provisions of Article One of the State Leasing and Vacating Real Estate System, a government entity may lease the real estate it requires under the following conditions:
1- Availability of financial appropriation in the budget of the leasing entity.
2- The absence of suitable real estate with the entity wishing to lease.
3- The real estate must be designated for the purpose for which it is leased.
4- The area of the real estate to be leased must be within the needs of the requesting entity - two in leasing, without exaggeration in the rent, so that the rental value is within the market price and not excessive, while negotiating with the lessor to reduce it as much as possible.

Article 2

The government entity is not permitted to lease property for the accommodation of its employees, except for those cases where the regulations allow for their housing.

Article 3

When a Government Agency leases a real estate property that is not owned with a legal deed, it must consider the following:
1- The inability to find a suitable property owned with a legal deed.
2- The owner's lack of a title deed for reasons beyond their control and unrelated to them.
3- The approval of the Ministry of Finance for leasing the property before concluding or renewing the contract.
4- The duration of the contract must be renewable in accordance with the regulations stipulated in the State Leasing of Real Estate and Eviction System and this regulation.
5- Ensuring - before renewing the contract - that there is no alternative contract owned with a legal deed that meets the required conditions.

Article 4

The leased Real Estate must meet safety and security requirements, and the lessor must provide a report from the Civil Defense and from an engineering office regarding the safety of the Building and the suitability of the location and Real Estate for the activity of the Contract. This must be done at the beginning of each contractual year.

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Article 5

A- With due regard to what is stated in paragraph (B) of Article (3) of the Law, the Owner of Property whose real estate is requested for lease shall not be one who is prohibited from dealing with by virtue of a decision or a judicial ruling until their status is restored or the period of prohibition from dealing with them has ended.

B- The reasonable period specified in paragraph (C) of Article (3) of the Law shall be determined according to the circumstances by the leasing authority, and this shall be clarified to the lessor when requesting the restoration work.

Article 6

First: Unless otherwise agreed, the lessee is obligated - during the term of the contract - to carry out ordinary maintenance (preventive maintenance) of the leased real estate and its essential components, which includes scheduled periodic tasks that are performed to prevent gradual deterioration of devices, equipment, and facilities of the real estate, as well as inspecting devices and equipment according to the instructions in the manuals and technical guides of the manufacturing companies, and repairing any damage resulting from their use.

Second: The lessor is obligated - during the term of the contract - to carry out corrective and restorative maintenance of the essential equipment of the leased real estate at their own expense without claiming any compensation or increase in payment.

Third: The lessor is obligated - during the term of the contract - to maintain the electrical and hydraulic elevators through a specialized company or institution, at their own expense.

Fourth: The government agency wishing to lease must clarify in the lease contract the provisions stated in the previous clauses.

Chapter 2: Leasing Procedures

Article 7

A- The announcement in the newspapers - in accordance with the regulations stipulated in Article (4) of the law - is limited to the buildings and real estate intended for lease, and does not include other supporting services such as furnishing, maintenance and operation, or security services, and other matters that must be announced independently in accordance with the Government Tenders and Procurement Law.

B- The announcement must include general and non-specific specifications that apply to a particular real estate.

Article 8

Subject to the provisions stipulated in Articles (5 and 6) of the Law, the government entity may, prior to contracting, request the lessor to make certain modifications to the real estate in accordance with the following conditions:

1- There is no suitable property that meets the required conditions and specifications.

2- These additions shall not result in a change in the shape of the building or cause substantial alterations to it.

3- The total payment shall not exceed the authority of the entity as stipulated in Article (15) of the Law.

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