Questions & Answers
How to protect yourself when signing a tenancy contract of a warehouse?
Dear Sir/Madam,
We are in the process of setting up our company in the UAE. We have found a warehouse that fits our requirements and we have paid the security deposit and the agency fees. We would like to confirm some points before signing the contract:
- Notice period: The owner said that we should inform him one month in advance if we want to leave and exit the contract. Is there a clause in the DREC contract that states this? Are there any penalty fees? How can we avoid any problems with this?
- No Objection Certificate (NOC): The owner promised to give us an NOC after the contract is signed to allow us to upgrade the power and install air conditioning. How can we make sure that this happens? Should we have him include this in the contract terms?
In general, can we trust their promises or should we get a letter before signing the contract? Note that they are refusing to give us an NOC and we have been told that we took too long to finalize the contract.
Thank you for your attention to this matter!
Hi,
In accordance with your query, the penalty will be as per the terms of the tenancy contract, which is agreed upon and signed by the landlord and tenant.
You can ask him to add the NOC as an additional term to the tenancy contract before signing it.
Dear Questioner,
Please share the draft contract (if not signed) or the contract itself, once signed, with us so that we can advise you on your queries, verify the legal validity of the stipulated terms, and provide further advice.
Biju John,
Legal Consultant
