Government agencies may only lease property in cases of compelling need, and the lease shall be within the need of the government agency.

Housing of staff shall not constitute a compelling need for leasing. However, if the law stipulates the provision of housing for certain staff, the rent payable by the government agency shall not exceed the allowance allocated for staff housing at the time of leasing or renewal of the lease.

The leased property shall meet the following conditions that:

• a) the property be owned by the lessor by virtue of a title deed; counties and districts where such property is not available shall be excluded from such condition;

• b) the property not be owned by an employee of the leasing agency; and

• c) the structural defects that limit continued use of the property for the intended purpose be repaired at the lessor’s expense, without seeking any compensation or increasing rent during the validity of the lease. If the lessor fails to repair such defects within a reasonable period from the date of being notified in writing, the government agency may repair such defects and deduct the cost from the rent. The leasing government agency shall be responsible for the regular maintenance of the property and the repair of any damage caused thereby.

The government agency seeking to lease a property shall make at least two announcements to this effect in two daily newspapers within fifteen days. In districts, announcements shall be placed in public places in addition to newspapers. In all cases, the announcement shall include the type, area, and specifications of the property as well as the term and purpose of the lease

The government agency seeking to lease a property shall form a committee composed of three members of its staff to review lease offers and recommend the best offer based on suitability and rent amount. The committee shall verify the integrity of the building, and may, if necessary, seek the assistance of specialists.

If the rent of the property recommended by the committee referred to in Article 5 of this Law is within the percentages stipulated in Article 15 of this Law, the minister or head of the independent agency or their designees may, upon completion of procedures provided for in this Law, approve the lease decision and conclude the lease contract. If the rent amount of the proposed property exceeds the percentages stipulated in this Law, the government agency shall, prior to approving the lease decision and concluding the lease contract, notify the Ministry of Finance (State Property Department) in order to inspect the property and approve the lease.

A. The term of the lease shall not exceed three years. The lease shall be automatically renewed, unless either party notifies the other of its intention not to renew it 180 days prior to the expiration of the original or renewed term. The lease may provide for the right of the government agency to extend the lease after expiration of its original term for a period not exceeding three years without the lessor’s consent. In such case, the lease may provide for an increase of not more than 5% of the original rent if the extension is for one year, and not more than 10% if the extension is for more than one year.

B. The lease term may be up to twelve years if the leased property is constructed in accordance with the conditions and specifications agreed upon by the lessor and lessee.