Can the landlord ask for two months penalty if I break the contract before signing Ejari?

Dear.

You cannot cancel the contract and refund cheques unless you have a strong reason for cancellation.

If the Ejari contract was not finalized and the tenancy was never officially registered, it generally means the lease was not legally binding.

In this case, the landlord may have limited grounds to enforce penalties, especially if the contract did not specify such consequences for cancellation prior to the start date.

Rental contracts typically include terms about penalties for breaking the lease, but these clauses must be reasonable and clearly outlined.

If the contract does specify a penalty for cancellation, the amount should be proportional to the landlord's actual losses.

However, this penalty should not be excessive or punitive, and it should align with the terms of the contract.

You mentioned that you informed the landlord more than a week before the rental start date. If there was a cancellation notice period outlined in the contract, and you complied with it, this could reduce the potential for a penalty.

Generally, a notice period would allow the landlord to mitigate losses, but if the cancellation occurred early enough and the landlord didn’t incur significant losses (such as re-letting the property), enforcing a two-month penalty might not be justified.

For additional assistance, kindly provide your Whatsapp number.

Welcome.

According to UAE law, if the Ejari contract was not signed and you did not physically move into the property, charging a two-month penalty may not be legal.

We recommend contacting our specialized center for precise legal advice regarding your case.

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The fact that the Ejari hasn't been signed is a crucial factor in this situation. Without an Ejari, the tenancy hasn't officially commenced, which weakens the landlord's claim for a full two-month penalty.

While the landlord may have a right to claim damages for early termination, these damages should be reasonable and directly related to the actual loss incurred.

In this case, since the tenancy never officially started, there might not be significant quantifiable losses to justify a full two-month penalty.

If you need further clarification, kindly share your WhatsApp number. We will discuss this further.

Dear Questioner,

Thanks for your inquiry.

Regarding the above, we would like to inform you that, if you've signed a rental contract and handed over cheques, the agreement is legally binding, even if the tenancy hasn't started or Ejari is not registered.

The landlord’s demand for a two-month penalty is legal only if the contract includes an early termination or penalty clause. Here's what you can do:

Review the Contract: Check if the penalty is mentioned. If not, you may not be legally obligated to pay it.

Negotiate: Offer a smaller amount to compensate for the landlord’s inconvenience or costs.

Legal Dispute: If the landlord deposits your cheques or insists on payment without a contractual basis, you can file a case with the Rental Dispute Settlement Centre (RDSC).

Landlord's Obligation: The landlord must minimize their losses by trying to re-rent the property promptly.

Please let me know if you need help negotiating or filing a complaint.

Greetings,

Al Fahad Legal Consulting

According to UAE law, if the rental contract has been signed and the cheques have been handed over, it is considered a binding agreement between the landlord and the tenant.

In this case, the landlord has the right to ask for a penalty if the tenant decides to cancel the rental agreement before the start date.

It is likely illegal for the landlord to demand a two-month penalty given your timely notice and lack of an officially registered lease (Ejari).

You should review your contract closely and consider seeking legal advice if necessary.