Question: I have rented a studio apartment in Dubai and my tenancy contract is for a period of one year. I have requested the building management (owner) for an early termination of tenancy and in response, my landlord has notified me on the exit provision of the contract signed between me (as a tenant) and him. They are seeking 60 days' notice period along with additional two months of rent as penalty for early termination. Is this legal?

Answer:

It should be understood that the early termination clauses in your tenancy contract will be binding on the landlord and the tenant and these should be in accordance with Law No. 26 of 2007 Regulating Relationship Between Landlords & Tenants in the emirate of Dubai amended by Law No. 33 of 2008 (the 'Dubai Rental Law'). Article 4(1) of the Dubai Rental Law states, "The tenancy relationship between the landlord and tenant shall be governed by a tenancy contract describing the property in detail, the purpose of the tenancy period, rent and name of owner if the owner is not the landlord."

Based on the aforementioned provision of law, you should notify the owner two months in advance regarding your intention of early termination of the tenancy contract and further compensate the owner of the building by paying him two months of rental as specified in your agreement.

Further, Article 7 of the Dubai Rental Law, states: "If tenancy contract is due and valid, it cannot be unilaterally terminated by landlord or tenant, unless both parties agree on such termination or in accordance with the provisions of this law."

Therefore, you may personally approach and negotiate with your landlord and try to arrive at a solution, which suits both parties. On the other hand, you may also approach the Rental Dispute Centre in the emirate of Dubai and seek their opinion and advice on this matter.

Know the law

If tenancy contract is due and valid, it cannot be unilaterally terminated by landlord or tenant, unless both parties agree on such termination or in accordance with the provisions of the law

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates.

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