Q: A security deposit of AED 3,500 was paid to the landlord when I moved in and rental payment… A: If you want any payment to be treated as a security deposit…

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Early termination of a lease without a proper tenancy agreement

Hi,

A security deposit of AED 3,500 was paid to the landlord when I moved in and rental payment for each month was monthly. I moved out for personal reasons 4.5 months later and all rental payments were made for my time there.

At the time of viewing the room, it is being claimed that the landlord stated the minimum term was 6 months, which was never put in writing or was it ever confirmed I would lose my deposit even when I gave my 30 days notice. There is no contract or correspondence to confirm any of this.

The landlord lives in the property and is refusing to return any of my deposit. She is ignoring me now by blocking my number. I even offered her just over AED1,000 as a pro rata settlement as a goodwill gesture, but that is when she blocked me after she read it. I refused her 50/50 offer.

If filing a complaint can cost AED 2.5k-3k where do I stand it seems like a pointless exercise, I don't think RERA will look at it? Do I go to the police? I'd prefer to avoid this option.

Thanks

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9 Nov 2017, 13:15

The Law regulating the relationship between landlords and tenants does not provide an article for early contract termination. Unfortunately, unless you have an exit clause in your contract, the landlord is not obligated by law to let you off easily before the expiry of the term.

If there is no exit clause in your agreement, there won't be a penalty but you cannot terminate the lease unilaterally also. If you terminate it has to be with the consent of the landlord or with the permission of the Rent Committee.

And if there is an early termination of the lease in your lease agreement normally the landlord imposes 2-3 months rental as the penalty.

9 Nov 2017, 13:23

Thank you for your response.

Do the same rules apply for this type of tenancy when I'm renting a room out monthly with no set contract guideline established? To just say, oh you've not fulfilled 6 months of rent so we aren't keeping your deposit, is that lawful when it was never established and agreed in writing? Is this illegal? I don't see how the Rent Committee is involved in any way, so is this rental agreement potentially illegal?

That's what I'm trying to establish is that if no lease agreement was ever drafted and agreed, has this moved away from the usual rules and regulations and is simple unlawfully withholding my money?

Thanks

9 Nov 2017, 13:32

Dear Sub-tenant,

You did not mention that you leased only one room. Filing a complaint in RERA requires an Ejari which you will not get if you do not have a tenancy agreement. Leasing a room will not involve tenancy contract or Ejari. You cannot have a claim over a verbal agreement.

You should have been more careful that you are giving a sum of money to someone without an agreement in place re not defining its terms and conditions for its return.

9 Nov 2017, 14:17

I understand exactly what you're saying and apologise for not being clearer...

So is that literally a license for them to just take my money like that, without any consequence? Do I have any case to being to the police's attention for theft?

Thanks again, I think this will be the last I need to correspond.

9 Nov 2017, 14:38

Do you have any proof you gave her the security deposit? Not a cheque, but some evidence that the payment/cheque shall be DEEMED to be treated as a security deposit? Then yes, you can go to the police station. If it is a simple cheque she will turn around and say you are repaying a loan.

Rights and obligations stem from legally permitted activities duly documented. Law recognizes the relation of landlord and tenant and not tenant and sub-tenant.

9 Nov 2017, 15:02

I have WhatsApp conversations to confirm that they wanted 1,500 settlement to secure the room which my partner settled for me in cash and then I paid 2,000 on top of my first rent payment which was clearly stated by them as a security deposit, to make the 3,500. I don't have a receipt for the 1,500 but proof of bank transfer of the other amount...

Just to clarify, does the same above in your message, apply to a landlord who resides in the property that they let a room in?

Thank you so much for all your help I am very grateful.

9 Nov 2017, 15:36

Tenant without Ejari

I have no issue answering your queries and I'm sorry that you had to deal with an unscrupulous landlord.

Cases are categorized as Civil, Criminal, Commercial, Labour, Personal, Tenancy. Your contention stems from a dispute between a landlord-tenant relation, thus Tenancy dispute, however, you do not have any evidence supporting your relation. Where is the proof that you were a tenant? or a subtenant? The only recognized document is a tenancy contract/Ejari which you don't have.

If you want any payment to be treated as a security deposit thus refundable then you need evidence in the form of a receipt due acknowledged by the receiver that the amount so paid will be treated by as a security deposit.

If the WhatsApp message says that it shall be deemed as a security deposit duly accepted by the landlord then you may consider filing a civil claim against the landlord which will be costlier than the security deposit.

9 Nov 2017, 15:49

It's such a horrible position to feel that you would have to spend more to file a civil claim than value of the claim itself. Doesn't act as much of a deterrent in these circumstances for parties withholding the money. I presume the court costs aren't paid for by the losing party?

I guess this basically means I will just have to let it go, I don't suppose the police can do anything to order the refund to go ahead unless a judgement is made so I'll just have to accept the money's gone.

Thanks again and hope you have a nice weekend.

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