Questions & Answers
Cancellation of a tenancy contract before its due date
Dears,
I have a tenancy contract for 6 years in Dubai. The agreement gives an option to renew every year but it does not talk about early cancellation or any penalty payments.
I have finished 5 years and I want to cancel now. In this case, should I pay any penalty payment imposed by the landlord or RERA if I cancel 1 year earlier?
Kindly advise!
Dear questioner,
Early termination of the tenancy contract is usually agreed between the landlord and the tenant and added to the addendum of the Tenancy Contract.
If your contract does not include an exit clause, then you will have to speak with the landlord and reach an agreement.
Usually, landlords ask for 2 months' rent as a penalty for early termination when they add the term to the tenancy contract.
In similar cases as yours, some landlords might end up not returning the security deposit.
Good Luck!
According to the Dubai Rental Law, it is permissible not to renew the contract, provided that the lessor notifies you 90 days before the contract expiry. If you want immediate cancellation, then you and the lessor must agree.
Dear questioner,
We need to review the tenancy contract to answer your inquiry.
Dear Questioner,
Please send me a copy of your tenancy contract to my email to review.
