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USA/Canada

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© 2024 Totality Real Estate LLC. All rights reserved.

Contact

USA/Canada

UAE

UK

Request a Call

© 2024 Totality Real Estate LLC.

All rights reserved.

Are there any clauses in the rental contract to use if you need to break it?

If you're renting a property in Dubai and find yourself in a situation where you need to break your lease, it’s important to know the legalities and clauses that may be available in your rental contract. While Dubai’s rental laws aim to protect both tenants and landlords, breaking a lease without the right provisions in place can lead to financial penalties. However, many rental agreements include specific clauses that allow tenants to exit early under certain conditions. Here’s what you need to know.

  1. Early Termination Clauses (Break Clauses)

    Many rental contracts in Dubai feature an early termination clause—often referred to as a break clause. This clause allows tenants to terminate the lease before the official end date, provided certain conditions are met.

    A typical early termination clause may require:

    • Notice period: Tenants are generally required to provide 60 to 90 days' notice before vacating the property. This should be clearly stated in the contract.

    • Exit fees: The tenant may need to pay a penalty, which is often equivalent to one or two months’ rent. This helps compensate the landlord for potential vacancy periods and any inconvenience caused.

    Always check if your lease includes this break clause before assuming you can exit early. If this clause is missing, it’s likely that you’ll be bound to fulfill the terms of the contract.


  2. Force Majeure Clause

    A force majeure clause is another critical element found in some rental agreements. This clause allows tenants to break the lease due to unforeseen, extraordinary circumstances beyond their control. In Dubai, force majeure typically applies to situations such as:

    • Job loss

    • Serious illness

    • Sudden relocation

    While not all contracts include this provision, it can be a helpful clause if you experience a significant life change. You’ll need to provide documented proof (such as an employer termination letter or medical certificate) to the landlord, and it may still involve negotiations on notice periods or penalties.


  3. Mutual Agreement with the Landlord

    If your contract doesn’t include a break clause or a force majeure provision, you can try negotiating directly with the landlord. Many landlords are open to mutual termination agreements, especially if the property can be re-rented quickly. Be prepared to:

    • Offer a substitute tenant who is ready to take over the lease

    • Pay any agreed-upon penalties, typically around 1-2 months’ rent

    • Give sufficient notice (usually around 90 days)

    Open communication with your landlord is key to finding a solution that works for both parties.


  4. The Role of the Rental Dispute Settlement Centre (RDSC)

    If you and your landlord cannot agree on early termination terms, you may have the option to take your case to the Rental Dispute Settlement Centre (RDSC) in Dubai. The RDSC serves as a legal body for mediating tenancy disputes and will review your situation in line with Dubai’s rental laws. However, keep in mind that the RDSC typically favors adherence to contract terms unless extenuating circumstances are present.


  5. Preventing Issues Before Signing

    To avoid complications if you foresee the possibility of breaking your lease early, it’s crucial to:

    • Negotiate an early termination clause before signing the contract. This gives you flexibility if your circumstances change.

    • Ensure that both penalties and notice periods are clearly outlined in the rental agreement to avoid unexpected costs.


  6. Job-Related Relocation

    In Dubai, expats may need to leave the country due to job relocation or other employment-related reasons. Some landlords are open to accommodating tenants in these situations, especially if there's a clause related to job loss or relocation in the contract. It's worth discussing this with your landlord when you sign the lease, especially if your job may require sudden moves.

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