Many people wonder about how to terminate a lease agreement in the UAE and the necessary procedures to do so. If you are a landlord or a tenant who, due to certain circumstances, needs to terminate a lease agreement in the UAE, you can follow this article to learn more about the essential procedures and other important details that may be provided by a law firm like Samaha Law Firm, which specializes in this field in the UAE.
Terminating a Lease Agreement in the UAE
According to UAE law, a lease agreement is a binding contract for both parties. The landlord is obligated to allow the tenant to benefit from the leased property as agreed upon between them, or according to the designated purpose of the property or the prevailing custom for its use.
A lease agreement is also a contract of consideration, involving an exchange of the benefit from the leased property by the landlord for the rent paid by the tenant.
Despite being a binding contract for both parties, governed by the principle of “the contract is the law of the contracting parties” and regulated by the UAE rental law, the contract can be void or voidable according to the provisions of the UAE Civil Transactions Law.
Therefore, either party to the contract can demand the termination of a lease agreement in the UAE if the contract suffers from a defect of consent, such as fraud, exploitation, coercion, or substantial discrepancy.
Either party also has the right to request the termination of a lease agreement in the UAE if the other party breaches their contractual and legal obligations.
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Termination of a Lease Agreement by the Tenant
A tenant has the right to request the termination of a lease agreement in the UAE before the Rental Disputes Settlement Committee if the landlord fails to fulfill their contractual and legal obligations. In this case, the tenant can terminate the lease and claim compensation.
The tenant may also continue the lease and request a rent reduction that is proportionate to the decrease in the benefit from the leased property.
This applies if the landlord fails to hand over the property to the tenant, hands it over in a way that makes it unusable, or does not carry out the necessary repairs to the property.
If you need legal advice, you can contact us at Samaha Law Firm for legal consultations, conact us via WhatsApp or Phone +971544447773
Termination of a Lease Agreement by the Landlord
A landlord has the right to request the termination of a lease agreement in the UAE before the Rental Disputes Settlement Committee if the tenant breaches their contractual or legal obligations. This type of termination by the landlord is known as eviction.
The process for a landlord to terminate a lease agreement in the UAE is done by filing an eviction lawsuit before the Rental Disputes Settlement Committee in the following cases:
- If the tenant fails to pay the rent due within the specified deadline, the lease agreement can be terminated.
- If the tenant assigns the lease or subleases the property, the lease agreement can be terminated.
- If the tenant occupies the property with a number of people that exceeds the recognized limit for housing.
- If the tenant uses the property in a way that violates the agreed-upon terms of use or causes clear damage to the property.
- If the tenant uses the property in a way that violates public order and morals.
- If the property owner needs to demolish the property and rebuild it, provided they obtain the necessary licenses and grant the tenant a six-month notice period from the date the licenses are issued.
- If the property owner wants to occupy the property themselves and does not own another suitable property for residence.
Procedures for Terminating a Lease Agreement in the UAE
The rental law clarifies how to terminate a lease agreement in the UAE, allowing both the landlord and the tenant to request its termination and non-renewal. They can also claim compensation for the termination of the lease agreement.
All of this is without prejudice to terminating the lease agreement by mutual consent, as “the contract is the law of the contracting parties.” The parties can terminate the lease by mutual agreement and end their contractual relationship by their own free will, provided they are qualified to do so.
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Terminating a Lease Agreement by Mutual Agreement
You may wonder if a landlord has the right not to renew the contract. The answer is yes. Both the landlord and the tenant can agree to end the rental relationship amicably and by mutual agreement, provided they comply with the conditions for a new lease termination:
- The lease agreement must be terminated according to the specific form provided by the UAE.
- The landlord and the tenant must sign and stamp this form.
- The required data must be filled out in the form, and a commitment must be made that it is correct. This includes, in particular:
- The name of both the landlord and the tenant, their personal identity details, and their addresses.
- The number of the leased property and the real estate area where it is located.
- The number of the lease agreement to be terminated.
- The start and end dates of the lease agreement.
- No information in the form should be modified so that it is not canceled by the municipality.
- The termination fee for the lease agreement must be paid.
The Difference Between the Expiration and Termination of a Lease Agreement in the UAE
The expiration of a lease agreement refers to the end of the specified term of the contract, as per the agreement’s terms. The termination of a lease agreement, on the other hand, can happen at any time, either due to legal reasons that prompt one of the parties to terminate the contract or through a direct agreement between them.
According to the rental law in the UAE, a lease agreement expires at the end of the agreed-upon period. The law stipulates that a lease agreement is automatically renewed for a similar period if neither party notifies the other of their desire to non-renew the lease agreement in the UAE and vacate the property.
We have presented everything regarding the termination of a lease agreement in the UAE. If you need legal advice, you can contact us at Samaha Law Firm for legal consultations, conact us via WhatsApp or Phone +971544447773.
