Q: I have a tenant in JBR for many years. Three months written notice must be given by the tenant and the tenant will be required to pay the equivalent of one month's rent. Do I have any grounds to take action… A: The question is whether the tenant has followed the procedure for the termination…

Dubai, UAE

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Penalty for the early termination of tenancy contract

I have a tenant in JBR for many years who is paying rent in 2 payments.

The 2nd payment was due 1/3/18 but he delayed it and has now sent me the payment for only 4 months, as he wants to leave at end of June as per clause below.

The contract states:

6. If the tenant would like to terminate the tenancy agreement prior to the contract end date, three months written notice must be given by the tenant and the tenant will be required to pay the equivalent of one month's rent as compensation to the landlord with all remaining rent returned to the tenant.

7. If clause 6 is invoked, the tenant will be refunded his/her remaining rent (excluding the one-month penalty) and the security deposit pending a move out inspection report of the property.

My point is that he should have paid the full 6 months rent instalment on the 1st of March and he would have received a refund of only 1 month after moving out.

Do I have any grounds to take action against him?

Abduraheem Padinhare Kayakalil

Mohamed Aleghfeli Advocates & Legal Consultants

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21 Mar 2018, 13:59

Going through the question and facts of the case, it seems that the tenant wants to terminate the tenancy, here the question is whether the tenant has followed the procedure for the termination of tenancy?

Coming to your specific question, I need to see the entire facts and documents on hand to advise you better.

Feel free to reach me at 0527520742.

21 Mar 2018, 14:09

He has sent a written notice via email as follows:

Therefore, I herewith terminate the tenancy contract registered under Ejari No. xxxxxxxxx (v.4) effective 1 July 2018.

This is not the issue. The issue is whether he should pay 6 months rent, 5 months rent or 4 months rent.

According to the contract, he should have paid the full 6 months instalments.

As a favour, I said he can pay 5 months but he has transferred only 4 months (March, April, May & June) ignoring the penalty clause.

Can action be taken? Do you have an email address as I am not in Dubai?

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Ahmed Elnaggar

Elnaggar & Partners

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25 Mar 2018, 05:04

First, we have to highlight that without seeing the terms of the agreement, our advice is indicative and not to be considered final.

Second, usually rents are guaranteed with post dated cheques. Seems to me that it is not the case here and that is why you have no control on the funds.

Third: you should make a calculation based on the termination clause and if the paid 4 month are correct it should not matter if he paid and you deduct or the opposite.

You only have grounds if you are denied of a certain amount, not because of the method of payment or deduction.

Regards,

Ahmed Elnaggar

25 Mar 2018, 10:09

Hi,

I have put the extract from the contract in my question above. Points 6 and 7 apply. He is paying by wire transfer as I am not in dubai. Surely it is clear from point 6 and 7.

I am concerned that I will not receive my 1 month compensation payment that is due if he gives notice.

Therefore he should have paid the full instalment on 1st march before he gave the notice or at least paid 5 months including the penalty.

25 Mar 2018, 11:08

This is not a legal concern I see. It is mathematical one maybe :)

As per the articles 6 and 7, he should pay you the rent for each month he stayed plus one month compensation knowing that he MUST notify you 3 months ahead, "Which I understand he did".

25 Mar 2018, 17:16

As he has not paid the compensation, is there any legal grounds?

Also, shouldn't the rent be paid as the full instalment if its supposed to be 2 cheques?

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