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

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.

Q: Back in April, I had signed for an office space in order to start registering my business. However, due to my investor backing out immediately afterwards, I had to halt my plans and cancel the office space. However, the office space management refused to cancel the lease as the contract has a clause stating that in the event of cancellation of the contract, I am still liable to pay the entire amount of the rent, regardless of not having used the office space at all. They continued to make invoices and are threatening with legal action if I do not pay. I would like some advice on how to handle this situation as I do not have the funds necessary to pay off an office space for one year. I feel it is unfair that they should force me to pay for an office I have not used nor planned on using, having informed them of this within a month of the contract being signed.

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.

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.

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

Q: We are tenants for the past 18 years. Due to the business failure for 3 years, we are unable to pay the rent for now nearly 3 years and waiting for the landlord to say to vacate and go without penalizing us. However, now they have come to us and saying that we need to pay all the 3 years of rent. Failing to do so, the landlord will send the police to vacate us. Please can you advise us on the solution? We just want to move out from here as we cannot afford to pay the rent. Is there any help for us?

Q: We had an arrest warrant against our company owner for unpaid office rent in Dubai. As per the court order, they evicted us, sold our assets, claimed AED 95000, and requested an arrest warrant. We lost all our documents to run the company further which was removed by the landlord as per court order and not able to pay this amount as the company was in a huge loss for the last 2 years. Is there any option to remove the arrest warrant and the case? The company's legal form is a sole proprietorship.

Q: Can building management legally restrict customer access after specific hours, such as closing the main entrance at 10 PM? My lease agreement does not specify operating hours and we have traditionally operated until 11:30 PM. What are my legal options to address this new policy?

Q: Hi, My friend purchased a business from someone this year. The seller later wrote to the landlord of the office that she was no longer the owner of the business and that she would not continue to be the tenant. She gave that in writing. After this, a real estate agent mailed my friend that since the business was sold without getting approval from the landlord who wants to sell it, hence, they want to cancel Ejari or vacate upon the expiry of Ejari which is due 40 days from now. So my friend who had no RERA experience gave the real estate agent a letter in the name of the landlord that they would vacate it after Ejari. But now they r not getting the office of their needs immediately and Landlord is not ready to extend even one hour extra. What can he do now in Ejari? There is a clause that rental rights cannot be transferred. Please note that Ejari is in the name of Business and not an individual. 1- Should they ask for legal notice? 2- Can he evict them due to the letter? Please advise how to extend it?

Over the years the UAE has become a centre of trade and commerce for the Middle East, thanks to its strategic location, excellent connectivity and extensive services to assist with all aspects of business. According to the World Bank's 2016 report, the UAE has ranked 31st in the global index of ease of doing business. This encourages more entrepreneurs to set up different kinds of business entities in the country.

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.

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.

The provisions of this Law apply to the commercial companies established in the UAE and the foreign companies that have established in the UAE a base to conduct any activity therein or established a branch or representative office. The Law abrogates Federal Law No. (8) of 1984 Concerning Commercial Companies.