Early Termination of your Contract

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Mazhar is a high-profile banker in Dubai, with very little time. He is being transferred from Dubai to London and now has to wrap up everything in Dubai. Mazhar did not incorporate an Early Termination / Lease Break Clause in in his Contract.

  • Law 26. of 2007 by RERA, regulating the connection between landlords and tenants doesn’t provide a section for early contract termination but rather governs the connection between the 2 parties as long as the agreement is valid. So, if you would like to terminate your contract early, don’t depend upon filing a case with Rental Dispute Center, especially if you don’t have a break lease clause in your contract.
  • Dubai Laws are silent / ambiguous on Early Termination of the Contract and refers back to the actual contract itself.
  • In order to avail the legal system, the tenant must file a case with the Rental Dispute Center, which is a detailed process, which requires time and money. A lot of Tenants think they can bluff the Landlord or have a misconception themselves that they can file a complaint with (wrongly RERA, who has no jurisdiction in the matter) and the complaint itself would be sufficient to scare the landlord in seeing Mazhar’s ways. The reality is far from the above.

Mazhar best option at this point is negotiate with his Landlord outlining his currently scenario and hope the Landlord can see his way. Tactics that Mazhar can use are;

  • I can help find a replacement tenant. Which is a good option, but is Mazhar not signing himself up to a job that he might not be able to succeed.
  • Offer a Penalty to the Landlord that he might accept. Not all Landlord are cooperative.
  • Mazhar should be upfront with his Company as they might be willing to absorb the loss on the contract.

Regardless of the outcome on the above, do not ever let yourself be in such a situation. Always have a Tenancy Contract that allows for Early Termination / break lease preferably with a 2 Month Notice and no Penalty, or if forced minimize the penalty.

If you need more help reach out to us at contactus@xiipointre.com

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