Cand Tenants Terminate Their Leasing Contract Early in Dubai?

23-05-2018

 

While most tenants who commit to fulfilling a rental contract intend to complete its term, situations might arise which force the tenant to request exiting the leasing agreement early. Suppose a tenant accepts a new job, a company relocates or a personal emergency, forcing the tenant to relocate while the lease agreement does not expire soon. Tenants should understand Dubai's real estate laws in case they need to break their lease due to an emergency.  This article is a guide for Dubai's residents to understand Dubai's rental laws and the potential options to break a lease agreement early. 

Know the law

The Real Estate Regulatory Agency Law 26 regulates the relationship between landlords and tenants in Dubai. Law 26 does not include a section regarding early contract termination. Its sole purpose is to govern the agreement between the tenant and landlord until the contract expires. Therefore, unless there is a specified early exit clause in the rental contract, do not waste your time contacting RERA. 

Understand the Rental Contract Before Signing

Check if the lease agreement includes an early exit clause. The landlord legally reserves the right to uphold the contract if an exit condition is not included in the agreement. In this case, landlords have total leverage. Tenants must speak with their landlord and hope to seek a mutual understanding. Explain your circumstances to the landlord and hope to reach a mutually agreed exit deal. A landlord might accept a two-month rental payment as a penalty to break the contract early. 

Search for a Tenant Replacement

Dubai's population is steadily growing with expats moving to the Emirates seeking work opportunities. The population growth makes finding someone to complete your contract possible. Finding a replacement is the last option if the landlord is unwilling the grant an early exit clause. 




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