On 1 June 2026, Federal Decree-Law No. (25) of 2025 brings into force a new UAE Civil Transactions Law. It replaces the 1985 law in its entirety. For everyone who manages buildings, runs JOP/OC accounts, or collects service charges in the UAE, the day-one impact is real — and the window to prepare is short.
Here are three things every property manager should do before the in-force date.
1. Refresh the common-parts catalogue against Article 1089
Article 1089 of the new law modernises the list of jointly owned parts of a building. It expressly captures cooling systems, lighting, water, drainage, gas, internet and satellite-dish infrastructure, sports facilities, recreation areas, guard accommodation, parking, courtyards, walkways and gardens — alongside the traditional structural and circulation elements.
For older buildings whose by-laws treat shared MEP, network infrastructure, or rooftop plant as "exclusive" to specific units, this is the moment to reconcile the management plan with the new Article. The same provision (Article 1093(2)) closes a recurring defence in service-charge recovery: an owner cannot waive their share in the common parts to escape contribution.
2. Re-paper the standard tenancy contract
Three sets of provisions in the new law directly affect the standard adhesion-style tenancy:
- Adhesion-clause exposure. Article 223 gives the court an express power to modify unfair conditions in adhesion contracts, and any agreement to the contrary is void. Penalty interest, unilateral rent step-ups, and automatic forfeiture clauses are exposed.
- Sublease and assignment. Article 729 requires the lessor's written consent for assignment or sublease, and preserves the lessor's right to terminate the sublease on rescission of the head lease.
- Notice to vacate and tacit renewal. Article 730 confirms lease termination at the end of the agreed term without need for notice, while Article 731 treats a tacit renewal as a new lease — meaning personal sureties do not carry over unless the surety re-consents.
The pre-contractual disclosure duty in Article 122 also reaches the letting process. Material misrepresentation about unit condition or hidden costs now gives the tenant an annulment claim, and any disclaimer that contracts out of the duty is void.
3. Reset your collection diary against the new prescription periods
The new law harmonises the time-bars. For property managers, the headline numbers are:
- General civil claim: 15 years (Article 429).
- Periodic recurring obligations (rent, service charges that recur on a fixed cycle): 5 years (Article 430).
- Acknowledged debt or judgment-rated debt: 15 years from maturity (Article 433(2)).
- Tort / harmful act (e.g. damage to common parts): 3 years from knowledge, 15 years absolute (Article 258).
Two operational reminders: the court will not raise prescription of its own motion (Article 444) — defending counsel must plead it. And under Articles 6–7, new limitation periods apply to running periods that have not yet expired on 1 June 2026. Every live arrears file needs a one-pass review.
A note on enforcement leverage
The lessor's statutory right of retention over movables in the leased property (Article 723), the privilege under Article 1411, and the three-year tracing window under Article 1414 (with attachment required within 30 days of removal) remain powerful collection tools for serial-arrears situations. Where collection is sluggish, this is the toolkit to put back at the front of the playbook.
Related Civil Code 2025 guides
Published 18 May 2026. General information only — not legal advice. Contact us for matter-specific advice.