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Lease Agreements in the UAE

Lease Agreements in the UAE

A lease agreement in the UAE is created to regulate the relationship between the landlord and the tenant, ensuring adherence to its terms and responsibilities to protect the rights of all parties. Despite this, the law has established several cases under which a lease agreement can be canceled or terminated.

Lease Agreements in the UAE

The law regulating lease relationships defines a lease agreement in the UAE as a contract under which the landlord is obligated to allow the tenant to benefit from a property for a specific purpose and duration, in exchange for an agreed-upon amount.

Therefore, a lease agreement in the UAE requires a specific duration for the property’s lease. Like any contract, it is binding on both parties once they agree, sign, and register it with the competent official authorities.

Is It Possible to Cancel a Lease Agreement in the UAE in General?

According to the lease agreement termination law in the UAE, also known as Federal Law No. 26 of 2007, which regulates the relationship between landlords and tenants, and according to Article 14 of Federal Law No. 33 of 2008, which amends some provisions of the previous law, either party to a lease agreement in the UAE has the right to amend its terms, such as setting a termination period, by notifying the other party at least two months before the contract’s expiry, unless the two parties agree otherwise. With the help of Samaha Legal Consultancy, you can draft or cancel a lease agreement in the UAE.

What Are the Procedures for Canceling a Lease Agreement in the UAE?

The UAE government, through the website of the Department of Land and Property, offers an electronic service to request the cancellation of a lease agreement for properties that have been leased or vacated.

The procedures to obtain this service are outlined in two ways: the first is using the online electronic application, and the second is through a service center, either by yourself or with a specialized lawyer like Samaha Legal Consultancy.

The procedures for the first method, through the electronic system, are as follows:

  1. Log in to the Ejari system if you have an existing account, or create an account and log in for the first time.
  2. Enter the required data and upload the necessary documents to support the request.
  3. After completing all the required data in the previous step and verifying them, you must submit the request electronically. Specialized lawyers from Samaha Legal Consultancy can assist you with this submission.
  4. The request for cancellation and termination will be received and reviewed by the employee responsible for this service.
  5. If the request is approved, an email will be sent to confirm it.

The steps for the lease agreement cancellation service at a service center are as follows:

  1. The first step is to go to one of the service centers, also known as Real Estate Service Trustees centers.
  2. Submit the required documents and ensure they are complete and correct. A specialized lawyer from Samaha Legal Consultancy can help you with this.
  3. The required data will be entered by the competent employee, verified, and officially approved with a specialized lawyer.
  4. The applicant pays the required fees and receives a receipt.

These fees are free when requesting the service through the electronic application, while they are valued at AED 40 when going to a service center, including service partner fees and value-added tax.

Can a Lease Agreement in the UAE Be Terminated Before Its Expiry?

The correct legal action, with a specialized firm like Samaha Legal Consultancy, if a landlord or tenant wishes to unilaterally terminate a lease agreement in the UAE before its expiry, is to obtain the consent of the other party.
According to Article 7 of the law regulating lease relationships, a valid and legally binding lease agreement cannot be terminated except by mutual consent of both parties.

What are the Cases for a Landlord to Terminate a Lease Agreement in the UAE Before Its Expiry?

A landlord has the right to cancel and terminate a lease agreement in the UAE before the specified legal term expires if one of the legal cases stipulated by the law is present, which can be summarized as follows:

  1. If the tenant fails to pay the full or partial rent within a month from the date of being notified of the payment due date, unless the parties have agreed otherwise in the contract.
  2. When the tenant subleases the property or part of it to a third party without obtaining written consent from the landlord.
  3. When the tenant uses the leased property for illegal purposes or in a way that violates public order, or allows someone else to use it for such purposes.
  4. If the leased property is a commercial space, the landlord has the right to request contract termination if the tenant does not occupy and use the property for one continuous month or two non-consecutive months in a single year, unless there is a legitimate reason or the parties have agreed otherwise.
  5. When the tenant makes a change to the property that affects its structural integrity and it cannot be restored to its original state after the modifications.
  6. If the tenant causes harm to the property due to gross negligence or a deliberate act of damage, or allows a third party to cause damage.
  7. If the landlord discovers that the tenant is using the property for a purpose other than that for which it was leased, or is using it in a way that violates building regulations, planning, and land use.
  8. In cases where the leased property is on the verge of collapse, provided this is confirmed by a technical report from the municipality or approved by it.
  9. If the tenant fails to fulfill their obligations under the lease agreement in the UAE within a month from the date the landlord notifies them to do so.

What Are the Conditions for Terminating a Valid Lease Agreement in the UAE?

A lease agreement in the UAE is one of the contracts that the UAE legislator has permitted and defined its provisions and conditions to serve the interests of individuals. Therefore, the implementation of contracts according to what was agreed upon is a binding obligation, unless there are obstacles or circumstances that prevent the completion of the contracts’ execution. Several conditions must also be met to ensure the validity of canceling and terminating a lease agreement in the UAE:

  1. A valid and properly concluded lease agreement between the parties, in accordance with the legal terms and conditions for regulating lease agreements between the landlord and tenant.
  2. The existence of one of the reasons and cases that allow a party to terminate the lease agreement before its expiry, as stipulated by the law regulating lease relationships.
  3. The party wishing to terminate the contract for one of the legitimate reasons must be able to adhere to the legal consequences of the termination as agreed upon in the lease agreement in the UAE.
  4. The party wishing to terminate the contract must notify the other party of the termination before the legal period or the period agreed upon between the two parties in the contract.

With the help of Samaha Legal Consultancy, you can understand all the conditions for terminating a lease agreement in the UAE in a legally sound and correct manner. Contact Us.

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