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USA/Canada

UAE

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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.

Can a tenant break their lease during the rental period?

Yes, a tenant in Dubai can break their lease during the rental period, but this action is governed by specific terms within the tenancy contract and local regulations. Here's what you need to know:

1. Check the Tenancy Contract

  • Early Termination Clause: The ability to break a lease early typically depends on whether the tenancy contract includes an early termination clause. This clause will specify the conditions under which the tenant can terminate the lease, the notice period required, and any penalties or compensation that the tenant must pay. Common penalties include forfeiting a portion of the security deposit or paying a set amount, often equivalent to one or two months' rent.

2. Negotiation with the Landlord

  • No Clause in Contract: If the tenancy contract does not include an early termination clause, tenants can still try to negotiate an exit with the landlord. This might involve finding a replacement tenant or agreeing to a financial settlement that compensates the landlord for the inconvenience and potential loss of income.

3. Legal Implications

  • Dubai Tenancy Law: According to Dubai’s rental laws, a tenancy contract is a legally binding agreement, and neither party can unilaterally cancel it unless there is a mutual agreement or a provision in the contract allows for such termination. If a tenant terminates the lease without adhering to the contract terms, the landlord has the right to seek compensation for losses incurred.

4. Force Majeure and Extraordinary Circumstances

  • Financial Hardship or Other Unforeseen Events: In exceptional cases, such as financial hardship or unforeseen events like a pandemic, tenants might be able to appeal to the Rent Dispute Settlement Centre (RDSC) in Dubai. If the tenant can prove that continuing the lease is unreasonable due to these circumstances, the RDSC may allow the lease to be terminated without the standard penalties, although this is not guaranteed and depends on the specifics of each case.

5. Steps to Take

  • Communicate Early: If you anticipate needing to break your lease, it's advisable to communicate with your landlord as early as possible to discuss your options.

  • Documentation: If you need to appeal to the RDSC or negotiate with your landlord, having proper documentation (such as a job loss letter or medical records) will strengthen your case.

Breaking a lease in Dubai is possible but comes with legal and financial considerations. Always review your contract carefully and consider consulting with a legal professional if you’re unsure of your rights and obligations.

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