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Dubai, UAE

Is there a chance to waive the 3-month rent penalty for early termination due to migration?

Dear Sir/Madam,

I need to break my tenancy contract early as my migration has been approved, and I need to leave Dubai and move to that country soon.

I have informed them at least 82 days before the date I want to vacate the premises.

The contract states that I need to pay 3 months' rent as a penalty.

Is this legal or is it too much? Is there a chance to waive it?

Thank you in advance!

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Al Hajeya Alnoobi Advocates and Legal Consultants
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21 Jun 2024, 16:02

Thank you for your inquiry!

Legally, a tenancy contract cannot be terminated while it is still in force except for specific reasons and by court order.

However, it is advisable to negotiate with your landlord regarding the penalty clause.

While the contract states that you need to pay three months' rent as a penalty, there may be a chance to waive or reduce this amount through mutual agreement, especially given your migration situation.

I recommend reaching out to your landlord to discuss your circumstances and explore the possibility of a more favorable arrangement.

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Hend Humaid Alnuaimi Advocates & Legal Consultants
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22 Jun 2024, 09:11

Dear Questioner,

In Dubai, it is common for landlords to include penalty clauses in rental contracts for early termination.

According to the Dubai Rent Index, if a tenant ends the tenancy agreement early, they are required to pay the landlord a penalty equal to the remaining rent for the duration of the contract or a maximum of three months' rent, whichever is less.

Given that your contract states a penalty of 3 months' rent, this is within the legal limits set by the Dubai Rent Index.

However, it is always worth trying to negotiate with your landlord to see if they would be willing to waive or reduce the penalty in your specific circumstances.

It may be helpful to provide documentation of your approved migration and the 82 days' notice you have given to vacate the premises.

Ultimately, the decision to waive the penalty rests with the landlord, but it is worth discussing the situation with them to see if a compromise can be reached.

Good luck with your move and immigration process!

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Amiri Advocates & Legal Consultants
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23 Jun 2024, 11:25

Yes, this is legal, and this agreement is binding on both parties.

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Jassim Ali Al Haddad Lawyers and Legal Consultants
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28 Jun 2024, 10:48

Given that the contract specifies a penalty of 3 months' notice in case of early termination, it's essential to comply with this clause or attempt to negotiate a discount with the landlord.

Filing a case may be an option, but it's likely to delay your departure plan.

Therefore, it's recommended to prioritize finding an amicable solution to avoid any potential delays or complications.

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