The Egyptian government reforms Egypt’s rent law, ending Old Rent Law and evacuating all units of non-residential purposes from residential properties under the eradicated law, Invest-Gate reports.

The Council of Ministers approves draft law on some provisions regarding all legal leased residential units for non-residential purposes. The first article specifies the scope of the draft law, limiting it only to legal rentals of properties or places for purposes other than residential on leased properties or places under the provisions of Law No. 49 of 1977 unless the parties agree otherwise. According to the ministerial statement, Article I also regulates the relationship between the tenants and landlords under the provisions of Law No. 136 of 1981 in regards to buying and selling unless both parties agree otherwise.

Article II sets a timeframe for such evacuation that it is mandatory within a period not exceeding five years from the date of law enforcement.

Article III is to balance the relationship between both parties by setting a rental value five times the applicable legal value. This value is subject to an annual 15% increase.

Article IV obliges the tenant to evacuate the leased property and return it to the owner or landlord, immediately after the expiry of the period referred to in Article II of this law.

In the event the tenant refuses to do so, the owner or the landlord may ask the judge, under which jurisdiction the property is located to expel the tenant refraining from eviction, without prejudice to the right to compensation if necessary.