The real estate authority is the regulator of brokers who facilitate commercial rentals: the changes to the law do not apply to rental housing. For these leases, the government has already made changes: even if COVID-19 is considered a force majeure event under the current tenancy agreement, the provision of a tenant cannot be excused unless the implementation is objectively impossible or economically unreasonable. Courts have often held that a force majeure provision “must go hand in hand with evidence that non-performance was caused roughly by contingency and that, despite the promisor`s skill, assiduity and good faith, the delivery remains impossible or excessively costly.” 2 Tenants may apply in tenancy agreements for relief through “force majeure” or “substantial negative effects” clauses. Force majeure protection is granted by Article 273 of the BGB. The force majeure clause is not exhaustive and interpretation depends entirely on the text of the treaties. As a result, judicial precedents for these cases differ from case to case. The lessor could attempt to include a strict force majeure clause, while the lessor would vouch for a broader interpretation. As many commercial landlords, tenants, lenders and borrowers have already done, the best approach is to work together constructively to find a solution that is sustainable and responsive to the needs and interests of all parties. Keep reading for the latest information on how commercial rental issues are affected by this extension. For more information on the application of the new laws and the VA code, please see the DEF coVID-19 and the expiry of the trading chart. With respect to commercial leases, this had the effect of COVID-19: DIFC also authorized deferred rents for all REAL estate of DIFC Investments for up to six months. In the DMCC, tenants were granted a lease waiver for commercial tenants affected by the Dubai Economics Directive, which forced them to temporarily close.
Sharjah Asset Management has waived from March for three months to commercial rents for all tenants of the Haraj and Jubil markets.