
18– Are there any specific laws designed to protect leaseholders, e.g. deposit protection schemes?
There are no specific laws designed to protect leaseholders, however, whether, in a case of a dispute or a nondispute but preservation of rights, there are certain procedures that ensure the leaseholder’s rights. Therefore one of the most certified procedures is when the leaseholder deposits the rental and/or services fee at the notary public.
19- Are there any fair rent/rent review laws?
The rental law in Lebanon is divided into two laws:
1- 160/92 exceptional law where any rental contract that has been signed any time before 22nd of July 1992 is subject to this law which is considered to be fair for the tenant that can constantly extend the lease contract for a very cheap rental fee. Therefore it is considered unfair for the landlord that cannot ask the tenant to vacate the apartment without paying compensation equal to 30 to 50 percent of the apartment’s value.
2- 159/92 law where any lease contract signed after the 22nd of July 1992 follows this law which is subject to the terms and conditions of the involved contractors as they can specify the lease rental and period freely.
However, the parliament is working on completely canceling the 160/92 exceptional law in a way where both the leaseholder and landlord’s rights are fully preserved. This is will be valid and effective in January 2015.
20– Are there any rules around the types of people who can rent specific types of property?
There are no rules around the types of people who can rent out specific types of property since the leaseholder can be Lebanese or a foreigner renting any kind of property, however, the leaseholder should match the terms required in any standard contract i.e. an adult, qualified for contracting.
The landlord should monitor the use of the property where it must be exactly as stated in the contract i.e. residence, office, under the penalty of the contract’s termination. In addition, the landlord must check that there are no violations of Lebanese law during the occupancy of the property otherwise the contract will be terminated and the leaseholder will face legal prosecution.
21- How actively are renting laws enforced?
As previously mentioned the renting laws are divided into two. Any lease contract before the 22nd of July 1992 is subject to the 160/92 law and any lease contract after the aforesaid date is subject to the 159/92 law. The laws regarding both are fully enforced, in case of dispute the rental court where the property is located in the right reference since it will ensure the application of the law.
22- How does the repossession process work?
Under Lebanese laws, the repossession process is restrictively initiated by the Lebanese government as per the below conditions:
-Compensation should be paid by the government to the landlord in accordance to the real estate property value at the time of the repossession;
-The repossession decision shall be promulgated by the primary repossession committee and the appeal repossession committee; such committees shall decide and approve the compensation to be paid to the landlord;
-The Compensation shall not be due to the landlord by the Lebanese government if only a third of the surface is repossessed.
23 – How are mortgage interest rates regulated?
Mortgage interest rates are basically 9%. However, this may differ according to the bank that is being dealt with depending on what they have to offer.
24–Are there any unusual forms of guarantee on property purchases – if so how do these work in the event of a default?
In the case of a property purchase, the buyer has the right to register the contract in the real estate records in order to protect himself from any third-party buyer the original landlord might attempt to sell to. Even though the landlord would be committing fraud however the property is considered to be for the buyer that registers first the contract.
25- How is the title registered and how easily can it be checked?
A buyer can register his new property at the real estate department once he signs the contract and authenticates it at the notary.
Then, the title is registered in his name, and the property transaction is completed and finalized.
Checking the title registry is very common and any national can do it and especially if they have a proxy for that purpose.