Q: I have released 7 post dated cheques for house renting… A: The question is: Did you read your contract and found a clause regulating the early termination…

All cities, UAE

4557

Issue with rental cheques paid up front

Sir,

I have released 7 post dated cheques for house renting on January 12. January 15 is the date of the 1st cheque which is valued 9k. But on January 15, my bank froze my account because my company terminated me. So I told them to not withdraw the cheque coz I got no money in it and I'm cancelling that property.

When I asked them I need to collect my cheque, they told me I cannot. Not unless I pay them 9000.

Do they have the right to do this? I am in a deep problem as they filed a case against me regarding this. So, I want to know.

Thank you.

Premium

Ahmed Elnaggar

Dar Al Balagh Advocates and Legal Consultancy

Chat

Hire

Meet

21 May 2017, 09:01

The question is: Did you read your contract and found a clause that regulates the early termination case?

If you do not have then it is completely up to the mutual agreement of both parties to decide how to terminate the contract earlier than agreed. And in case you cannot amicably agree then the answer is - Unfortunately - yes. The landlord has the right to keep the checks as long as there is no early termination clause in the contract, refer to the Rent Committee to get a verdict to compensate him the damages or early termination of the contract.

Let me know if you would need assistance representing you before the Rent Committee.

Regards,

Ahmed Elnaggar

21 May 2017, 10:23

Sir,

Thank you for the reply. The main thing is, there is no Contract that was signed or red because I didn't continue with the rent due to work related problem.

The agent took my cheque knowing he will hold it till he has the draft of my tenancy contract for me to sign. But then when I told my agent I won't proceed with the agreement and explained my case, he said that my cheques have already been forwarded to the landlord.

I don't know what is the legal procedure and if this activity is correct as it caused me problems and money that should be avoided only if he disclosed to me the step he's making.

30 May 2017, 07:08

The problem is that a check is payable once it is drafted and released. It is a big mistake handing over the checks without getting a signed contract from the landlord.

I advise you to go make a complaint to the RERA (Real Estate Regulatory Agency) against the Broker and his company.

Do you have access to the rented apartment? If yes, then the contract - even if it is not signed - is deemed valid because the act of occupying the unit and handover of the checks means that contract started already.

Was this content helpful?

Fixed-fee services

2 • View all