Under what circumstances can an Ejari registration be canceled, and what are the necessary steps, legal requirements, potential fees, and implications for tenancy?
Ejari is the official rental contract registration system in Dubai, managed by the Dubai Land Department (DLD) and regulated by RERA (Real Estate Regulatory Authority). It ensures that all rental agreements are standardized, legally binding, and transparent. Under certain circumstances, the Ejari registration can be canceled. Below is a detailed explanation of when and how an Ejari registration can be canceled, the steps involved, legal requirements, potential fees, and implications for both landlords and tenants.
1. Circumstances for Canceling Ejari Registration
There are several situations under which an Ejari registration can be legally canceled:
End of Tenancy Contract: When a lease expires and is not renewed by mutual agreement, either the tenant or the landlord can request the cancellation of the Ejari registration.
Early Termination of Tenancy: If both parties agree to terminate the lease early, the Ejari can be canceled before the contract’s expiration date. This often happens in cases where the tenant vacates the property due to job relocation or personal reasons, or if the landlord sells the property.
Eviction or Legal Dispute: In cases where a tenant is evicted due to legal reasons (e.g., non-payment of rent), the Ejari can be canceled once the eviction order is finalized and implemented.
Transfer of Property Ownership: If the property is sold, the new owner may request the cancellation of the previous Ejari registration and register a new contract with the existing tenant.
Non-Renewal of Lease by Landlord or Tenant: If either party chooses not to renew the contract upon its expiration, the Ejari registration must be canceled before entering into a new agreement with a different tenant.
2. Steps to Cancel Ejari Registration
Canceling an Ejari registration is a straightforward process, but it must be done through the Ejari portal or at an authorized Ejari center. Below are the steps involved:
1. Submit Cancellation Request
Either the tenant or the landlord can initiate the cancellation. The request must be submitted through the official Ejari portal (www.ejari.ae) or via a visit to an authorized Ejari center in Dubai.
2. Required Documents
The following documents are required to cancel the Ejari registration:
Original Ejari certificate or Ejari number
Original tenancy contract
Proof of termination (e.g., non-renewal notice, early termination agreement, eviction order)
Tenant’s Emirates ID or passport copy
Landlord’s Emirates ID or passport copy (for individuals) or Trade License (for companies)
No Objection Certificate (NOC) from the landlord or property management company
3. Processing the Request
Once all required documents are submitted, the Ejari cancellation request is processed. The Ejari system will update the status of the contract and remove it from the active records.
4. Receive Confirmation
After processing, a confirmation of cancellation is provided to both the tenant and the landlord. This ensures that the rental agreement is no longer in effect under Ejari’s records.
3. Legal Requirements for Ejari Cancellation
While canceling Ejari is relatively straightforward, there are legal considerations that must be met:
Mutual Agreement: In cases of early termination, both parties must mutually agree to end the tenancy and provide supporting documentation (e.g., a termination agreement). If one party objects, the process may involve legal action through RERA or the Rental Dispute Settlement Centre.
Compliance with Notice Period: Both landlords and tenants must follow the legal notice period for terminating a tenancy agreement. For instance, landlords must provide at least 12 months' notice if they plan to sell or use the property for personal use, while tenants must adhere to the terms of the contract regarding early termination.
Final Payment of Bills: Before cancellation, the tenant must ensure that all final utility bills, such as DEWA (Dubai Electricity and Water Authority), are cleared. Some landlords may require proof of settlement before signing an NOC.
Eviction Orders: If the Ejari is canceled due to an eviction, the landlord must provide the eviction order from Dubai’s judicial authorities as proof.
4. Potential Fees for Ejari Cancellation
While canceling Ejari registration itself is typically free, some associated costs may apply depending on the specific circumstances:
Service Fees at Ejari Centers: Some authorized Ejari centers may charge a nominal fee (usually around AED 40 to AED 100) for processing the cancellation request.
Legal Fees: If the termination of the contract involves a legal dispute, there may be additional legal fees for handling the eviction or dispute resolution.
Penalties for Early Termination: If the tenant breaks the contract early, they may be required to pay an agreed-upon penalty, which is usually specified in the rental agreement. This is not related to Ejari but affects the overall cost of canceling a tenancy early.
5. Implications for Tenancy After Ejari Cancellation
Canceling an Ejari registration has several important implications for both landlords and tenants:
End of Legal Tenancy: Once the Ejari registration is canceled, the legal tenancy agreement is considered terminated. This means that the tenant must vacate the property, and the landlord can legally re-lease the property to a new tenant.
Security Deposit: The tenant may request the return of their security deposit after the cancellation, provided that they have met all the contractual obligations (e.g., final bills, property condition).
No New Contracts Without Ejari: Landlords must ensure that a new Ejari registration is created when signing a lease with a new tenant. Failure to do so can result in legal penalties and complications with RERA or the Rental Dispute Settlement Centre.
Utility Disconnection: Once Ejari is canceled, tenants should notify DEWA and other service providers (e.g., internet and gas) to close their accounts and settle any outstanding bills.
Impact on Tenant’s Residence Visa: For tenants whose visas are linked to their tenancy agreement (e.g., freelancers or investors), the cancellation of Ejari may require updating their visa or showing proof of a new tenancy agreement.