Questions & Answers
Penalty for early termination of the lease contract
I have a studio in discovery gardens. I have taken it on 4 cheques. My 3rd cheque is from this month, mid of April until mid of July.
I have been transferred to Amsterdam and need to report on duty from June. I have informed the real estate for early termination.
They told me that beside this cheque, I need to pay 2 months rent plus 1000 penalty.
Can you advise how much do I have to pay for early termination as per the law?
Dear Sir,
Thank you for reaching out to me on this.
I understand that your lease contract does not have an early termination clause, in view of which you are required to give 90 days' notice to the real estate company as early termination amounts to the variance of the lease contract.
You may also inquire with the real estate company as to on what basis are they claiming 1000 towards penalty. If this is not mentioned in their contract, then it's not justified.
I would advise that you approach the Rent Dispute Committee to adjudicate the dispute in case there is not an amicable settlement.
You should clear the case before you leave the country or else it is possible that the real estate company may bounce your 4th rent cheque and file a case for the outstanding amount.
This may result in an ex parte judgement rending your re-entry into the UAE difficult.
I trust you will find this appropriate.
Regards,
Hari Wadhwana
