Tenancy contracts usually include a term period, but it is possible for a tenant to end the contract earlier than the agreed date. While it is entirely legal, some points need to be considered to avoid any dispute and disagreement. Let’s get into the details of the tenant’s early termination of lease in Dubai.
EARLY TERMINATION OF A TENANCY AGREEMENT IN DUBAI
Tenant’s early termination of lease or in simple words ending a tenancy agreement early is allowed and legal. The Dubai tenancy law, however, does not make any such provision on the contract itself. In fact, the Dubai rental law governs the relationship between the landlord and tenants until the contract is valid.
UNDERSTANDING THE LAW
According to Law 26 of 2007, the lease agreement legally binds the landlord and tenant until the contract expires. Law 26 does not include any clause of early termination by either of the two parties.
However, this does not mean a tenant does not have the option of ending a tenancy contract early. That can be done, provided the landlord agrees.
Previously, according to Law 33 of 2008, if any of the parties wish to make amendments to any of the terms in the tenancy contract, they need to serve a notice to the other party. A notice of 90 days prior to the expiry of the tenancy contract was necessary.
Later on, certain articles of Law 22 of 2007 were amended and now the 90-day notice period is not required to end the tenancy early. The updated rental law in Dubai gives priority to the terms outlined in tenancy contracts. Therefore, it is necessary the tenants are aware of the notice period mentioned in the rental agreement.
To put it simply, if a tenant wishes to end their tenancy contract early in Dubai, they must ensure there is an early exit clause in the contract. Please also keep in mind that none of the parties can exit the clause early without the consent of each other. If there is an exit clause, all you have to do is serve a notice period of 90 days before ending the contract. In case your landlord agrees to a two-month rent or a tenant substitute, the notice won’t be required.
WHAT WILL HAPPEN IF THE TENANCY CONTRACT DOES NOT INCLUDE AN EARLY EXIT CLAUSE
If a tenancy contract does not include an early termination clause, the landlord has all the right to ask the tenant for compensation. Landlords usually ask tenants to compensate for breaking the lease early and leaving their property before the contract ends.
In such a scenario, the tenant may have to lose the rent for the remaining duration of the contract or pay some kind of compensation if they wish to leave early.
Nonetheless, the tenant also has the option to discuss the matter with the landlord and seek a mutually agreed solution. If the landlord is understanding, they might cut a deal and ask the tenant for a two-month rent or for a tenant replacement before permitting the tenant to end their tenancy contract earlier.
KEY CONSIDERATIONS FOR ENDING TENANCY AGREEMENT EARLY IN DUBAI
Please consider the following key factors before ending a tenancy agreement early in Dubai:
- When signing the tenancy contract, make sure it has the exit clause mentioned
- This will save you from a lot of trouble when ending a tenancy agreement early
- If the tenancy contract does not have an early exit clause, get in touch with the landlord
- Give a valid reason as to why you need to break the lease agreement before time
- If the landlord agrees, he may ask you to pay compensation and leave the property
- You can also offer to find another tenant replacement, making it certain the landlord doesn’t suffer any financial loss
- If you cannot find a substitute on time, you will have to compensate the landlord for ending the contract early
THINGS TO KEEP IN MIND WHEN ENDING LEASE AGREEMENT IN DUBAI
Incase of tenant’s early termination of lease, renters should be aware of the following requirements:
- According to Article (15) of Law No. (33) of 2008, a tenant is to receive the rental property in good condition, and the landlord is usually required to get the major required maintenance or repairs done.
- Usually, rental payments in Dubai are made through post-dated cheques deposited to the landlord. That said, in case the landlord does not want to receive the cheques, they can be handed to the Dubai Rental Dispute Settlement Centre.
- As per standard, the tenancy contract in Dubai is of one page, but to include further terms and conditions an addendum can be added in the contract. Just always be sure of the terms and clauses pertaining to increase in the annual rent or payments for utility charges and repairs, among other things.
Can a Landlord End a Tenancy Contract Before Time?
According to the tenancy law in Dubai, a landlord can terminate the lease agreement before its expiry and evict the tenant in the following scenarios:
- If a tenant fails to pay rent or a part of it within 30 days of being served with the landlord’s written notification unless both parties agree otherwise
- If a tenant subleases the landlord’s property without getting written approval from them
- If a tenant performs illegal activities on the property or allows anyone else to use the property for illegal activities
- If a tenant damages the property or makes changes that render the property unsafe
- If a tenant uses the property for any other purpose not specified in the lease
- If a tenant doesn’t comply with any of the terms of the tenancy contract or the law within 30 days of being notified by the landlord to abide by the conditions
- The landlord can also end the tenancy contract early in Dubai if the property is in danger of collapse
- If the property requires demolition and reconstruction according to the Emirate development requirements and in accordance with government authorities’ instructions
- In cases of commercial properties, the landlord can ask the tenant to evict if they closed down their business for 30 or 90 consecutive days providing a reasonable reason to the landlord
- In all aforementioned scenarios, the landlord must notify the tenant through the Notary Public or by registered mail
FAQs
Can I leave my tenancy agreement early?
If a tenant wishes to end their tenancy contract early in Dubai, they mention an early exit clause in the contract. A tenant can then exit the tenancy agreement early with the landlord’s consent.
What can a tenant do if the landlord forces them to evict before the contract ends, without a valid reason?
If a landlord is unlawfully evicting a tenant in Dubai, the tenant should try and talk to the landlord and negotiate. If the landlord doesn’t agree, the tenant has the right to file a complaint at the Dubai Rent Dispute Settlement Centre (RDSC).
What documents are needed from the tenant to file a complaint against their landlord?
To file a rental dispute case in Dubai, tenants must keep all necessary documents pertaining to their tenancy contract. Other documents include Ejari Dubai along with the latest DEWA bill, title deed copy, tenant’s passport and visa copy, Emirates ID copy and any other supporting documents before filing a complaint with the RDSC.
What can tenants do if they want to terminate their tenancy early or shorten the lease period due to financial losses?
If a tenant is not able to pay rent because of monetary hardships, they can approach the landlord and explain their situation in hopes of negotiating a mutually agreed-upon deal. Tenants can provide supporting documents such as a copy of the termination letter or pay cuts issued by the employer, this will help validate their situation. However, if a landlord doesn’t agree or doesn’t want to negotiate, the tenant can contact the RDSC on 800-4488 and ask for further advice.
That is all about the tenant’s early termination of lease in Dubai. Furthermore, reading the details about the RERA law in Dubai will also help in this regard.
After you have been through all the important details, you can check out villas for rent in Dubai. If you are interested in living in flats, here is a list of apartments for rent in Dubai.
Stay tuned for more on UAE property laws and regulations.
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