Registration of tenancy agreement is a compulsory requirement, failure of which amounts to fines three times of the registration fees, according to Muscat Municipality.

The first party (landlord) is bound to register the agreement with Muscat Municipality and pay the fixed tax of 3 per cent. The second party (tenant) is supposed to pay as agreed upon in the contract, failure of which would invite legal proceedings, a spokesperson at the civic authority confirmed.

“The non-registration or renewal of the agreement and/or the failure of payment of the fixed tax within one month from the date on which it has been signed or expired and entered into shall result in this agreement being considered as legally null and void before any government authority in the Sultanate of Oman, in addition to imposing a fine equal to three times the fixed tax,” the spokesperson said.

The second party is bound to hand over the leased property to the first party on the date of expiry of the agreement. He is bound to undertake necessary repairs and damages that may result from the misuse of the property. The first party is bound to undertake any maintenance/overhauling/restoration works required for maintaining the leased property in a condition consistent with the purpose it is rented for.

If one party fails to comply with his commitments, the other party shall have the right to rescind these provisions.

“This agreement can be renewed for a further period or more unless one of the parties advise the other of his wish to evacuate the property before the expiry of the valid period by at least three months or half of the period if it is less. The landlord may not ask evacuation of the property except in particular cases and according to the provisions and procedures of the Royal Decree No (6/89),” the spokesperson further said.

Other terms and conditions may be added to this agreement as mutually agreed by both parties provided not to contradict the Royal Decree.