Required Disclosures for UAE Commercial Landlords

In the United Arab Emirates, commercial property disclosures are less about handing over lengthy lead-paint pamphlets (as seen in the West) and entirely focused on ensuring the tenant's company can legally operate in the space under municipal zoning laws.

Title Deed and Ownership Authority

The most fundamental disclosure in UAE commercial leasing is proving absolute authority to lease the space.

When a corporate tenant prepares to sign a commercial lease, the landlord MUST disclose and provide copies of:

1. The Official Title Deed: Proving they own the commercial unit.
2. Identification (Emirates ID/Passport): Validating their identity against the Title Deed.
3. Power of Attorney (POA): If a property manager or representative is signing the lease on behalf of the landlord, they must possess a notarized, up-to-date POA explicitly authorizing them to lease commercial property and collect rent on the owner's behalf.

The Dubai Land Department's Ejari system (and Abu Dhabi's Tawtheeq) actively blocks the registration of any commercial lease if these ownership documents are invalid or expired.

Zoning and Permitted Use (The Affection Plan)

A crucial disclosure in commercial real estate is the Affection Plan (or Site Plan) issued by the municipality.

The landlord must ensure (and disclose) that the property's official zoning matches the tenant's intended business activity.

• You cannot lease a space zoned strictly for "Office Use" to a tenant intending to operate a "Restaurant" or "Heavy Industrial Manufacturing."
• If a landlord falsely markets a warehouse for chemical storage when it is purely zoned for light retail logistics, the tenant will fail to secure their Trade License from the Department of Economic Development (DED). The tenant will then have immediate grounds to terminate the lease via the RDSC and sue the landlord for damages and lost time due to the failure to disclose accurate zoning.

Material Defects and "Good Faith"

UAE civil law requires business dealings to be conducted in good faith. A commercial landlord must hand over the property in a state suitable for its intended, licensed use.

• Power Load: For commercial spaces, landlords must accurately disclose the available electrical power load (measured in kW). If you lease a space to a restaurant needing 150kW but the unit's main breaker only supports 30kW, failing to disclose this massive infrastructure shortfall will lead to contract disputes.
• Structural Integrity: Landlords must disclose any known, severe structural issues (e.g., a failing roof in a warehouse) that would prevent the tenant from safely operating their business.

Disclosing a Property Sale to the Tenant

Commercial properties are frequently bought and sold with tenants in situ. If a landlord sells an occupied office building or retail shop:

• The new buyer essentially "steps into the shoes" of the previous landlord. The existing commercial lease remains fully valid and enforceable. The sale does not give either party the right to cancel the contract.
• The landlord (seller) and the new landlord (buyer) must disclose this transfer of ownership to the commercial tenant in writing to ensure the tenant begins directing future post-dated rent cheques to the new owner's corporate accounts.

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