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Can I cancel the tenancy agreement without paying a fee because I lost my employment?

Dear Lawyers,

I have just renewed my tenancy agreement with my landlord for a new one-year contract. Both of us have signed the contract, and I have given the cheques, with the first one to be cashed on 22nd October 2024.

I have just learned that my employment contract will be terminated on 31st December.

Can I cancel the tenancy agreement and get my two cheques back without paying a fee since I am losing my employment?

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Rashid Khalil Obaid Advocates and Legal Consultancy
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30 Sep 2024, 06:20

Dear Questioner,

Yes, you can potentially cancel your tenancy agreement and get your cheques back without paying a fee due to your job loss if there is nothing mentioned in your tenancy contract about early termination.

The first thing you have to do is send a written notice to your landlord stating your intention to cancel the tenancy agreement.

Clearly mention the reason for cancellation (job loss). The best way is to negotiate with the landlord to cancel this without any penalty.

If you need further clarification about handling this situation, kindly share your WhatsApp number.

30 Sep 2024, 06:26

Thanks for your answer!

The contract is attached for your reference.

30 Sep 2024, 06:31

As per the agreement, there is an early termination clause.

Reach out to us via [-------] to discuss this further.

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KHE Legal Consultancy
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30 Sep 2024, 06:56

Dear questioner,

You are either required to pay compensation of two months' rent to the landlord unless there are explicit contract terms regarding early termination, or we can try to negotiate with the landlord.

If you need our assistance, kindly share your WhatsApp number.

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Alawi Aljaberi Advocates & Legal Consultants
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30 Sep 2024, 07:16

Dear Questioner,

According to UAE law, a tenant can terminate a tenancy agreement before its expiry date if they have a valid reason, such as losing their job.

However, the tenant may be required to pay a penalty fee to the landlord for early termination of the contract.

In your case, since you have already signed the new tenancy agreement and given out the cheques, it is considered a binding contract.

If you wish to terminate the agreement, you will need to negotiate with your landlord and come to an agreement on the penalty fee. This fee should be stated in the tenancy agreement.

If you are unable to come to an agreement with your landlord, you can file a complaint with the Rental Dispute Settlement Center. They will review your case and make a decision on the penalty fee.

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Mohamed Bakheet Advocates & Legal Consultants
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30 Sep 2024, 10:19

Dear Questioner,

Send a legal notice to the landlord stating your desire to vacate and recover the remaining checks, provided that you pay two months' rent.

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