Q: I signed a lease contract for a villa. Paid 5% deposit. We are not happy with how the landlord is discussing some small terms. ًe would like to cancel. What would be the consequences of such termination? A: You have signed the contract already, that means that you're obliged with all the terms…

Dear, Greetings. As I understand that you have signed the contract already, that means that you're obliged with all the terms. Therefore, you have to find solutions by reviewing the terms of the contract regarding the statutes of 5% deposit and 5% for the agent. First, you adjust the contract as an amendment for the clauses you like to amend, and in that case, you need to consult a lawyer to amend the contract in a way that suits you. Second, continue with your contract to avoid the loss of the paid amount. For more inquiries, please contact us directly by email.

Consequences of terminating a lease contract after releasing first payment

Questions & Answers

Questions & Answers

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Early termination of a tenancy contract and refund of the paid rent

Q: I live in Dubai and I want to terminate my tenancy contract after 3 months. I lived here for last 3 years in the same flat. As per the tenancy contract, in case of termination of the contract by the tenant, the tenant has to pay minimum 2 months rent as a penalty. The agent has asked me to pay this penalty but he is not refunding me the full balance amount of rent. He is calculating the balance refund rent on 10% less than the actual rent in tenancy contract. Is this legal as there is no such clause in the contract nor agent has informed me earlier during signing the contract. Please advise what to do.

Sep 13, 2017

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Real property amenities and the right to terminate a lease

Q: I have paid three cheques up until the end of November 2017 when it is being demolished. I need to move out into staff accommodation in August when the next cheque is due. The relationship with the landlord company is not great. I have had 4 cheques bounce. 2 - my fault, 2 - theirs. I am being charged 8 thousand for this which I will pay. They have however not kept the swimming pool clean. I have many emails with photos showing the green pool and requests for it to be kept clean. Can I terminate the contract as they are not keeping it clean?

Mar 19, 2017

733

Rental dispute over early termination penalty clause

Q: My tenancy contract was made until September 2018, but I'm losing my job now. Therefore, I have to terminate my contract with a one month notice. But the landlord is asking for two extra months rent after my eviction period also. Please advise me about this.

Feb 6, 2018

1000

Is there a timeframe for a refund after canceling the rental contract before moving in?

Q: Dear Questioner, I signed a rental contract. Two days later, my circumstances changed, requiring me to cancel the contract. This was still 15 days before the move-in date. I had not received the keys, and the flat was not yet ready. Unfortunately, the agent insisted that the first payment be made by direct transfer, not a cheque. Since I canceled, they have emailed to acknowledge the cancellation, but I haven't heard anything since. There is a two-month penalty written into the contract, so I am waiting for the returned cheques and the rest of the rent (minus the two-month penalty) to be returned. Is there a mandatory timeframe for this to be completed? Three weeks have passed since their acknowledgment. Thanks in advance!

Jul 15, 2024

157

Can I get the rent cheques back if I decided to cancel the tenancy shortly after signing the agreement?

Q: The landlord has entered and signed a 1-year tenancy agreement with a tenant on 10.10 with a move-in date 4 weeks later, and on 07.11. collected 4 cheques (3 + 1 security deposit). 1 day before moving in the tenant decided to abruptly cancel and demanded for the cheques not to be deposited. Ejari has not yet been registered as it was planned to be done after the key handover. Is the landlord entitled to deposit the cheques (security cheque + 1 cheque) and demand 2 months' rent as a penalty? The tenancy contract has no explicit early termination clause. What are the rights of the landlord in this case to protect and address the financial inconvenience? Thank you.

Nov 6, 2024

179

Can the landlord ask for two months penalty if I break the contract before signing Ejari?

Q: After having signed the rental contract and handed the cheques, I communicated to the landlord that I no longer wanted to start the rental. I did so with more than a week's notice before the rental start date. No Ejari has been signed. The landlord is now asking me to pay a 2-month penalty. is this legal?

Nov 28, 2024

Legal blog

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Procedures of the Rental Dispute Settlement Center in Dubai

The relationship between tenants and landlords is regulated in Dubai by Law No. 33 of 2008 Concerning the Relationship Between Landlords and Tenants in the Emirate of Dubai. The arising rental disputes are referred to Rental Disputes Settlement Centre (“RDSC”) created by Decree No. 26 of 2013 to reconcile between the parties and reach an amicable settlement or seek a final judgment issued and enforced by the RDSC.

Oct 20, 2018

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What You Should Know While Renting a Property in the UAE

An interview-format article covering the topic of residential retail properties pertaining to the liability for property maintenance and the repercussions of defaulting on rent payments in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

Feb 24, 2020

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Laws & Regulations

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Law 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

24307

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

24993

Decree No. (26) of 2013 Concerning the Rent Disputes Settlement Centre in the Emirate of Dubai

This Decree establishes a specialised judicial system to hear rent disputes and develops the procedure for determination of such disputes through an expeditious and simple process for the purpose of realising social and economic stability for all persons involved with the real property rental and other related sectors.

Sep 18, 2013

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