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: 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: Hi, I have a property that is currently rented. The current contract will get expired on 31st January. Can I inform my tenant that I do not want to renew the contract because I want to have the property for personal use? Does the 12-month rule apply if I ask the tenant to evict after the expiry of the current contract renewal? Thanks in advance.

س: السلام عليكم، هل يمكن تقسيط مبلغ الإيجار المستحق لتجنب منع السفر أو الحبس بعد صدور أمر التنفيذ بإخلاء الشقة السكنية بدبي؟

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.

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.

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.

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. 

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.