Initiating the early termination of a tenancy contract can be a complex process fraught with potential legal and financial consequences. Therefore, it is important to understand the legal procedure entailed in terminating a tenancy contract before its expiration date and the practical steps to take when doing so.
In the Emirate of Dubai, a tenancy contract cannot be unilaterally terminated or amended before its expiration date and there must be a mutual agreement for termination between the landlord and the tenant. If either party wishes to amend any of the terms in the tenancy contract, they must notify the other party of this intention at least 90 days before the expiration of the tenancy contract. In other words, unilateral termination of the tenancy contract is not permitted unless there exist exceptional circumstances provided for under the law.
The applicable laws permit landlords to seek early termination of a tenancy contract in cases where there are extenuating circumstances as outlined in the law, including if
- the tenant has failed to pay the rent despite receiving a 30-day notice
- the tenant has damaged the property or that the property was used for illegal purposes.
- the tenant sublets the property or any part of the property without obtaining written approval from the landlord.
- the tenant changes or damages the property in a manner that makes it impossible to restore to its original state.
- the tenant uses the property for any other purpose than for which it is leased
Regardless of the circumstances, the landlord must adhere to the procedure of serving notice to the tenant either through a notary public or by registered mail when seeking early termination for any of the exceptional reasons stipulated by the law. In the event the landlord desires to repossess the property for renovation, personal use, or sale, the landlord must serve a 12-month notice to the tenant of the eviction reasons.
The law also permits a tenant to terminate the contract in certain circumstances where if-
- the landlord has breached its obligations under the law or the contract
- the intended purpose of the property is partially and significantly affected, they have the right to cancel the contract.
- fulfilling the contract would cause harm to the person or damage their property.
- the occurrence of an event prevents the performance of the contract.
Tenants also have the option to unilaterally terminate the contract by paying a penalty or compensation to the landlord.
When served with an eviction or termination notice, the first step is to review the terms of the lease agreement to ascertain the contractual obligations of the parties. The tenant can then attempt to negotiate with the landlord to reach an amicable solution. If no agreement can be reached, either party may approach the RDC (Rental Disputes Centre) for resolution.
Seeking expert legal advice is crucial during this process, as it will better help you to understand your legal rights and obligations. Contact us to know more!
