Questions & Answers
Questions & Answers
10 available 10 • View allEarly termination of a long-term commercial lease agreement
Q: In case of a long-term lease with a commercial tenant for eg 5 years and the tenant wants to break the contract say after 3 years.
The termination clause in the agreement states that the tenant has to pay a minimum rent for 3 years + termination penalty equal to 6 months + 3 months notice period.
The query is, at the time of termination, lease agreement ceases and the tenant is liable to pay the termination penalty + notice period immediately or as per the terms of the lease agreement?
Assume the tenant wants a payment plan, can he lock up the premise and not hand over the keys till the minimum rent period (i.e 3 years) and whether late payment fees is applicable? (assume the lease agreement states late payment fees for non-payment), if applicable whether the calculation should be from termination date or the lease due dates?
I believe the late payment fees should be from the termination date and not on lease due dates since the lease agreement is terminated by way of the notice.
Nov 15, 2017
3305
Early termination of Tawtheeq office lease contract
Q: I own a business in Abu Dhabi and my office is located in a business centre. The business centre issued a Tawtheeq and I renewed my trade licence.
Four months later, I gave a notice to the business centre to leave the office. They said I need to provide them with the new trade licence that has the new office address so they can give me back the 2 security checks and the one-month cash deposit they have.
I didn't rent a new office yet and I understood the business centre managed to cancel the Tawtheeq. However, they still insist on getting the updated trade licence with the new office address so they can rent again the office I was occupying, they said it was what the "Tawtheeq" department asks for.
Is this all legal? What are my options? Do I necessarily need to have a new office to claim my 2 cheques and deposit back?
Thanks
Sep 26, 2017
5206
The penalty for early termination of tenancy
Q: Sir, I have taken an office in Dubai for three years starting from 1st April 2015 to 31st March 2018. Due to slow business conditions, I am forced to reduce expenses and planning to vacate current office and move to a smaller one. Unfortunately, there is no early termination clause in the lease agreement.
Please advise what is the penalty in such cases as per government law.
Thanking You, Kind Regards.... Kuttan
Apr 30, 2017
7718
Consequences of early exit from a warehouse tenancy contract
Q: Greetings,
Dear Sir,
I have rented one warehouse in Feb 2018 and want to terminate my contract because of financial issues, but the landlord is demanding 4 months rent as a penalty.
Please be noted that in the contract, the termination clause is mentioned as "Termination of the tenancy contract is possible only after fully agreed terms by both parties".
Kindly advise, and also give any reference form law section.
May 30, 2018
1062
Termination of a commercial lease by the landlord
Q: What are the tenant's termination rights of a commercial lease in RAK if the rent is being paid based on production and no advance rent paid?
The contract does not provide the right to terminate for the tenant.
Thank you.
Sep 28, 2018
2204
Notice and penalty decided for early termination of commercial lease
Q: Hello Miss Amira,
This is A. from a properties company.
For a commercial property (office), I have two questions.
Q-1: How many days should be the early vacating notice from the tenant?
Q-2: How much is the penalty of the tenant for breaking the contract early?
Kindly reply to me at your earliest.
Regards,
J. A.
Jul 13, 2020
370
Wrongful cheque bounce case after changing the owner of a company
Q: I had issued rental cheques meant to be replaced by a new manager/owner taking over my company and bank accounts later on (for which I remained a silent partner).
the cheques were not replaced and were bounced by the landlord upon non-payment. I am no more the bank signatory or the manager on the trade license.
But they have filed a criminal case in Dubai police against my name since I signed the cheques. The rental dispute case is against the current manager.
How do I close my Dubai police case? And in the event of closure will I be liable to pay the rental dispute case too?
Your reply will be highly appreciated.
Nov 21, 2020
342
Conditions and procedures for vacating a tenant from commercial property
Q: We are renting an industrial area for the past 23 years which my dad constructed. The land is under Dubai real estate and an Emirati subleases to us.
He does not pay for repairs as written in the tenancy agreement. Last year, he asked us to vacate the area for his personal use and did not provide a written notice to vacate the area.
We want to stay in the area. What are our rights?
Jun 22, 2021
1310
Terminating a tenancy contract and claiming refund for failing to hand over property
Q: I approached a broker from an agency to rent an office in Business Bay. So he informed us to pay 23000 and broker charges first, then they will provide us with the documents and key.
After the payment, the broker gave the key and tenancy contract and told me that the owner of the office will come with me to register the EJARI and gave me the contact number of the owner.
I checked with the owner, he said the previous tenant ran away so he has to unblock something, and he is trying to do. After 13 days still, he is trying to unblock something.
We didn't get the EJARI till now. Without EJARI, we cannot move to the new location and we cannot apply to Etisalat connection.
Can I ask for the payment back and cancel the contract they made for me?
And also, can I collect back the broker charges?
Do I need to move legally, and if so, where should I complain about this matter?
Thank you
Jan 13, 2022
559
Can a landlord raise the rent before lease renewal, and can we refuse?
Q: We want to renew a rental agreement for the commercial estate. We informed the landlord 3 months prior to the expiry of the contract of our decision to renew.
Now, 2 months prior to the expiry date, the landlord informs us that he wants to increase the rent.
Can we refuse this increase?
Does the landlord have an opportunity not to renew the agreement with us if we refuse?
Feb 2, 2023
175
Legal blog
2 available 2 • View allMy Tenant Stopped Paying Rent & Became Unresponsive, What Should I Do?
An interview-format article covering the topic of defaulting on commercial lease in the UAE and related procedures. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW. In this article, Ludmila discusses what one should do if the tenant becomes unresponsive.
Feb 11, 2020
14859
An Overview of Commercial Lease Laws in the UAE
In the UAE, the relationship between landlords and tenants in terms of their responsibilities is primarily governed by Federal Law No. 5/1985. This law covers commercial properties without addressing the part related to maintenance and duties. However, it is common for commercial tenants to assume responsibility for repairs and upkeep.
Oct 2, 2023
194
Laws & Regulations
2 available 2 • View allLaw No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai
The provisions of this Law apply to real property leased out in the Emirate of Dubai, including vacant and agricultural lands, but excluding hotel establishments and real property provided by natural or legal persons as accommodation to their employees at no charge.
Nov 26, 2007
24287
Law No. (33) of 2008 Amending Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai
Provisions of this Law supersede articles (2), (3), (4), (9), (13), (14), (15), (25), (26), (29), and (36) of Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai.
Dec 1, 2008
24943
Premium
Other answers by
342 342 answers •
View allHow can I vacate my tenant if the rental agreement ends before the eviction notice deadline?
My Dubai tenant's rental agreement is ending by the end of September 2024 and the completion of 12 months of legally served Eviction Notice is the end of December 2024.
I have two questions:
(a) Can I send a rent increase notice 3 months before as the rent has increased as per the RERA rent calculator?
(b) The second question is, do I have to renew the rental agreement for 3 months (until December 2024) or not?
Thank you.
May 1, 2024
269
How can I reach a settlement with the bank for a mortgage of a jointly owned property?
I have a jointly owned property in Abu Dhabi. The mortgage was defaulted on as I had to leave the property with my children following an assault by my ex-husband. He left the country in 2018 and never paid the mortgage.
As I was in the country, the bank filed a criminal case against me, and I was sentenced to 3 years. I won the appeal against the bank and then filed another criminal case a few months later in Dubai. Again, I won and paid a fine.
In 2019, the bank started a civil case against me and my ex-husband to have the property repossessed. However, at the time of the purchase of the property, there were no Title Deeds, the bank requires this.
I cannot give them the Title Deeds to sell the property and pay back the amount owed to them as my ex-husband refuses to provide a POA. The bank has filed another criminal case against me only for our jointly owned property.
I wish to resolve this and pay off the bank and receive any money left from the sale. How can I resolve this issue of the Title Deeds?
Oct 4, 2022
284
The procedures for filing for divorce on mutual consent
Dear sir/madam,
I am separated from my wife due to compatibility reasons. We got married in the Indian consulate in Dubai on December, 23rd.
We would like to file a divorce on mutual consent as soon as possible. May I get some advice here on the procedures?
Sep 13, 2022
674
My previous employer failed to pay my gratuity. Can I file a case 6 months after resignation?
My previous employer failed to pay my gratuity six months past now since I resigned, Is it possible to file a case against him after a 6 months period?
May 31, 2022
1275
Can a real estate agency hold a percentage of a property sale until transfer is done?
A real estate agency has signed an MOU stating that a 10% security deposit from the buyer and the seller will be kept in the real estate agency and will be released upon transferring the property.
The transfer of the property was blocked due to the court order.
According to my colleagues, the real estate agency is not a trustee and they are not allowed to have taken my security check in the first place, is this correct?
Jun 28, 2021
1264
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