The First Party (landlord) is bound to register the agreement with Muscat Municipality and pay the fixed tax (three per cent of monthly rent).

The second party (tenant) agrees to pay electricity and water bills, sewerage service charges and any other fees/charges that should be borne by the tenant. This clause should be adhered to with effect from the date of handing over of the leased property to the tenant till the date of returning the leased property back by the landlord, unless otherwise is mutually agreed in writing.

Non-registration or renewal of the agreement and/or failure to pay the fixed tax within one month of its signing or expiry will result in it being considered legally null and void before any government authority in the sultanate, in addition to imposition of a fine equal to three times the fixed tax.

The municipality tax, which has been mentioned in the provisions of Royal Decree No 6/89 and its amendments, is a government debt that has to be paid by landlords or tenants as per the agreement and can be collected by administrative confiscation.

The second party is bound to hand over the leased property to the first party on the date when the agreement ends. He is bound to repair damages resulting from misuse of the property. The first party is bound to undertake any maintenance/overhauling/restoration works required for maintaining the leased property in a manner consistent with the purpose it is rented for.

Other terms and conditions may be added to the agreement as mutually agreed by both parties provided these don’t contradict with Royal Decree No 6/89.

In the event that one party fails to comply with his commitments hereto prescribed, the other party has the right to rescind the provisions of the agreement.

The agreement can be renewed for a further period or more unless one of the parties advises the other of his wish to vacate the property before the expiry of the validity period at least three months in advance or half of the period if it is less. The landlord cannot ask for the property to be vacated except in the cases and according to the provisions and procedures of the Royal Decree No 6/89.

The second party cannot sublet the leased property to a third party unless the first party issues prior written approval.