Q: I have taken an office in Dubai for three years starting from… A: The law does not mention the penalty. It should be mentioned in your lease agreement wich…

Dubai, UAE

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The penalty for early termination of tenancy

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

Nikhat Sardar Khan

Kochhar & Co Inc. Legal Consultants (Dubai Branch)

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30 Apr 2017, 10:41

Dear Kuttan,

The law does not mention the penalty. It should be mentioned in your lease agreement wich is normally 2-3 months rent. Please approach the landlord, who, most of the time is very kind and understanding.

With best regards,

Mrs. Khan

3 May 2017, 08:32

Dear Nikhat,

Thank you for your advice.

I have approached Landlord and explained that I am ready to pay a fair penalty for early termination. But they are not willing to accept and advised to respect the clause in the lease. Do you think there will be any law in the Dubai Land Department for such case?

Please advise.

Kind Regards,

Kuttan

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