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Dubai, UAE

How to claim compensation if the landlord seeks eviction after purchasing a business?

Dear Sir/Madam,

I bought a business in Dubai with a rent contract for 5 years, with 1 year remaining. The previous owner failed to inform the landlord during the transfer from DED.

The landlord was informed by the previous owner after 3 months. Upon being informed, the landlord claimed it was a sublease. I explained that the contract was between him and the company, not the individual.

He insisted it was a sublease, but I disagreed. The next day, he sent an eviction notice, citing an intention to sell. This occurred shortly after being informed by the previous owner.

I believe he plans to increase rent and sell the shop at a higher price, using the inflated rental income to justify a higher ROI. How can I remain on the premises, or if he rents it out again, what compensation can I pursue?

What documents should I collect to support a compensation claim later on?

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KHE Legal Consultancy
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19 Apr 2024, 11:01

Dear Questioner,

First, carefully review the original lease agreement between the landlord and the previous business owner.

Look for clauses related to lease transfer and subletting. Examine the documents related to the business transfer with the Department of Economic Development (DED).

Ideally, these documents should reflect the transfer of the lease agreement to your company.

Eviction notice for intention to "sell" is a tactic some landlords use, legally, they need a valid reason and proper notice period to evict you before the lease expires.

We will discuss more about the procedures to be taken.

Kindly share your WhatsApp number to proceed further.

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Ibrahim Al Banna Advocates & Legal Consultants
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19 Apr 2024, 22:25

Dear Questioner,

Thank you for reaching out to me with your concerns regarding your business lease in Dubai. I understand the complexity of your situation and the urgency to address it effectively.

Based on the information you've provided, it appears that there are potential legal avenues to explore in order to protect your rights and interests as a tenant. Here are some initial steps we can take to address your concerns:

- Assessment of Lease Agreement:

We need to carefully review the terms and conditions of your lease agreement to determine your rights and obligations as a tenant. This will help us understand the extent of your legal protections and any potential breaches by the landlord.

- Verification of Lease Status:

It's important to verify whether the lease agreement between the landlord and the previous owner was indeed transferred to you properly. If there were any discrepancies or failures to inform the landlord during the transfer process, we may need to rectify these issues through legal means.

- Negotiation with Landlord:

I will reach out to the landlord on your behalf to discuss the situation and attempt to resolve the matter amicably. We will assert your rights under the lease agreement and address any concerns raised by the landlord regarding subleasing or eviction.

- Documentation Collection:

To strengthen your case and potentially pursue compensation, we will gather all relevant documents, including the lease agreement, communication with the landlord, eviction notice, and any other pertinent evidence.

Regarding your question about compensation in the event of eviction or lease termination, it will depend on various factors, including the terms of your lease agreement, the circumstances of the eviction, and applicable laws in Dubai.

However, I will work diligently to ensure that your rights are protected and pursue the maximum compensation available under the law.

Please feel free to reach out to me via WhatsApp or phone to discuss your case further and schedule a consultation.

Your situation requires immediate attention, and I am committed to providing you with the legal guidance and representation you need.

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Hend Humaid Alnuaimi Advocates & Legal Consultants
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23 Apr 2024, 10:33

Dear Questioner,

We are pleased and honored to address your inquiry!

Initially, the previous owner is obliged to fulfill the contract unless it is annulled or terminated in accordance with the legal procedures.

The lessor is also bound to fulfill the contract. Regarding the sales contract, it is valid in your favor, not the original owner's.

For further details, you should review all relevant papers and documents to ascertain your legal position.

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