Some of your Questions:
Q. How much is the Municipality fee for lease agreement? Who is responsible to pay?
A fixed tax of 5% of the total annual rent amount is payable by the landlord at the time of registration of lease agreement.
Q. Which expenses are part of tenant responsibility?
The Tenant abides himself to pay electricity and water bills, Municipality rates, sewerage service charges, and any other fees/charges that should be borne by the tenant. The provisions of this Claus should be adhered to with effect from the date of handling over of leased property to the tenant up to date of taking over the leased property back by the landlord, unless otherwise is mutually agreed in writing.
Q. What happened when you do not renew the agreement on time?
The non-registration or renewal of a lease agreement and/or the failure of payment of the fixed tax within one month from date on which it has been signed or expired concluded and entered shall result in the lease agreement being considered legally null and void before any government authority in the Sultanate, in addition to imposing a fine equal to three times the fixed tax.
Q. Who is responsible for maintenance of the property?
The tenant in bound to handover the leased property to the landlord on the expiry date of the lease agreement. He is bound to repair any damages that may result from the misuse in the property. The landlord 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.
Q. What is the notice period to vacate the property?
The lease agreement can be renewed for a further period or more unless one of the parties advise the others of his wish to evacuate the property before the expiry of the valid period by at least 3 months or half of the period if it is less. The landlord may not ask evacuation of the property except in the cases and according to the provisions and procedures of the Royal Decree No. (6/98).