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Dubai: Will Landlords Refund Advance Payments for Early Contract Termination?

Dubai: Will Landlords Refund Advance Payments for Early Contract Termination?
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A rent contract can only be terminated with the mutual agreement of both the landlord and the tenant.

Question: I have been residing in a one-bedroom apartment in Dubai for the past four months and paid the rent for the entire lease term in a single cheque. If I decide to vacate the apartment now, am I entitled to a refund for the remaining eight months of rent, or will I forfeit the entire amount? Could you please clarify the regulations regarding this situation?

Answer: In Dubai, the relationship between a landlord and a tenant is governed by a registered rent contract, known as ‘Ejari,’ which includes details such as the rental property's description, rental term, rent amount, and payment method. According to Article 4 of Law No. 33 of 2008, amending Law No. 26 of 2007, all rental agreements must be registered with the Dubai Land Department (DLD) and follow the stipulated terms.

A rent contract cannot be unilaterally terminated by either party during its term. Termination can only occur by mutual agreement or in accordance with the prevailing rent laws, as stated in Article 7 of Law No. 26 of 2007. Additionally, the contract may include specific terms regarding early termination and associated penalties, as per Article 794(1) of the Federal Law No. 5 on Civil Transactions Law.

If you wish to vacate the apartment before the end of the lease term, you should review your rent contract for any clauses related to early termination and penalties. Generally, you must provide written notice as required by the contract and may need to pay an early termination fee. The landlord is obligated to refund the rent amount for the unused period, minus any applicable penalties, if stipulated in the contract. If there is no early termination clause, negotiating directly with your landlord and explaining your situation may be necessary.

News Source: Khaleej Times

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Shahba Mayyeri

Written by Shahba Mayyeri

Shahba is a Content Creator at HiDubai with 3 years of experience in crafting compelling stories and articles. She holds a Master’s degree in Media and Communications from MAHE Dubai.
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