Q: What are the tenant's termination rights of a commercial lease in RAK if the rent is being paid based on production and no advance rent paid? The contract does not provide the right to terminate for the tenant. Thank you.

Q: In case of a long-term lease with a commercial tenant for eg 5 years and the tenant wants to break the contract say after 3 years. The termination clause in the agreement states that the tenant has to pay a minimum rent for 3 years + termination penalty equal to 6 months + 3 months notice period. The query is, at the time of termination, lease agreement ceases and the tenant is liable to pay the termination penalty + notice period immediately or as per the terms of the lease agreement? Assume the tenant wants a payment plan, can he lock up the premise and not hand over the keys till the minimum rent period (i.e 3 years) and whether late payment fees is applicable? (assume the lease agreement states late payment fees for non-payment), if applicable whether the calculation should be from termination date or the lease due dates? I believe the late payment fees should be from the termination date and not on lease due dates since the lease agreement is terminated by way of the notice.

Q: Hello, I rented a shop on a sublease agreement from a tenant (who is not the original owner of the shop). We wrote a sublease agreement at the nearest typing centre with certain terms and conditions which both parties signed. The license of the shop is also on his name which I am just the user of his license according to the agreement. I have also provided a Bearer Cheque in advance for a few months. Now for a month, I am operating the shop. I see there is no business at all in the shop. All the rent of the shop I am bearing from my pocket, and I see there is no future in any way in this particular shop. So on the 4th of January, I notified him that I don't want to continue renting his shop. I will use the shop for a month since I notified him. He does not agree on this point by any means, but the problem is I don't have any money left in my pocket for the future rent if I keep the shop. Please guide me with the legal solution in this regard.

An interview-format article covering the topic of defaulting on commercial lease in the UAE and related procedures. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW. In this article, Ludmila discusses what one should do if the tenant becomes unresponsive.

In the UAE, the relationship between landlords and tenants in terms of their responsibilities is primarily governed by Federal Law No. 5/1985. This law covers commercial properties without addressing the part related to maintenance and duties. However, it is common for commercial tenants to assume responsibility for repairs and upkeep.

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.