In this Law, the following words and phrases shall have the meanings assigned thereto, unless the context requires otherwise:
Law: Law of State Leasing of Real Property.
Regulations: Implementing Regulations of this Law.
SPGA: State Properties General Authority.
Board: SPGA Board of Directors.
Government Agencies: Ministries, authorities, public institutions, and the like.
Lessor: Owner of the real property or the person with the legal right to lease it.
Head of the Government Agency: The highest official in the agency.
Portal: The web portal approved by the SPGA for the leasing of real property by government agencies.
Standard Lease Contract: The standard lease contract template approved by the SPGA.
This Law aims to:
1. regulate the government agencies’ leasing of real property according to their needs;
2. rationalize the financial costs of government agencies' leasing of real property;
3. enhance the government agencies' utilization of leased real property;
4. promote the principles of governance, transparency, and efficiency in government agencies’ leasing of real property; and
5. unify the supervision of the leasing of real property by government agencies under a single entity.
The government agency shall, in coordination with the SPGA, devise its annual plan for leasing real property prior to the beginning of each fiscal year, and publish said plan on its website or by using any other medium, in accordance with the Regulations. Publication of such plan shall not entail any obligations on the agency.
A government agency may not lease a real property unless there is an urgent need and the lease is approved by the SPGA. Such lease shall be in accordance with this Law and its Regulations and subject to the following conditions:
1. The government agency seeking to lease does not have an unutilized real property that meets its needs.
2. The SPGA does not have a real property that meets the needs of the government agency seeking to lease.
3. The government agency has sufficient financial allocation to lease and utilize the real property.
4. Any other condition approved by the Board.
Leasing real property for housing the employees of a government agency shall not be considered among the needs for leasing, unless the bylaws of such agency provide for such leasing. In any case, the rent paid by the government agency shall not exceed the housing allowance for the agency's employees at the time of leasing, extension, or renewal.
The real property to be leased shall meet the following conditions:
1. It shall be free from structural defects.
2. It shall meet the necessary licensing requirements of the competent authorities.
3. Its size shall be commensurate with the needs of the government agency.
4. It shall be insured, if applicable, by the lessor, in accordance with relevant laws.
5. It shall not be the subject of a violation issued by a competent authority, or be the subject of a dispute.
6. It shall not belong to an employee of the SPGA or the government agency seeking to lease the property, or to any of his relatives of first, second, or third degree.
7. It shall not belong to a person with whom dealing is legally prohibited, as determined by the Regulations.
8. When developing technical specifications, the government agency shall take into account the requirements and needs of persons with disabilities.