Early Termination of Tenancy Contract in Dubai

Introduction

Most tenancy contracts in Dubai have a fixed term period, during which they are valid. However, in some cases, tenancy contracts in Dubai can be terminated early. 

Both the tenant and the landlord may terminate the tenancy contract early in Dubai by following the procedure and providing a notice to the other party, such as the tenant leaving notice. 

This guide by Kayrouz & Associates is designed to help both landlords and tenants understand the law on early termination of tenancy contracts in Dubai, including how to cancel Ejari without incurring additional fines or penalties.

Understanding Tenancy Contracts in Dubai

A tenancy contract, sometimes also referred to as a rental agreement in Dubai, is a legally binding contract between a landlord and tenant which:

• Allows the tenant to occupy the property for a fixed period of time
• Contains the mutually agreed-upon terms of the lease
• Covers the obligations of the tenant and the landlord
• Lists the procedure for registering Ejari, and sometimes even how to cancel Ejari
• Includes how much notice to give landlord Dubai

Legal Framework Governing Early Termination

While the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA) are the primary authorities that regulate tenancy and property laws, the legal framework includes the following rules:

1. Dubai Law No. 26 of 2007: This is the primary law governing tenancy in Dubai and the relationship between landlords and tenants. Specific provisions of the law have been amended by Law No. 33 of 2008. 
2. Decree No. 43 of 2013 Determining Rent Increase for Real Property in the Emirate of Dubai: This decree establishes a procedure for certain rent-related disputes, including rent increases. 

Critical Note: Dubai tenancy law applies only to leased properties in Dubai and does not govern any hotel or similar establishment. 

Key Clauses to Review Before Ending a Tenancy Early

While under Dubai’s real estate law, it is permitted to terminate a tenancy early, the following clauses must be looked at:

1. Notice Requirements: Most tenants are confused about how much notice to give landlord Dubai. Typically, either party can terminate a tenancy contract early by providing a written 90-day notice sent by registered mail. In most tenancy contracts in Dubai, this is the standard notice period mentioned. 
2. Auto Renewal: Some tenancy contracts do not expire at the end of their term. Instead, if the tenancy agreement includes an auto-renewal clause, the contract will renew, if the tenant is still living in the property, with no objection from the landlord. 
3. Return of Security Deposit: Unless there is any verifiable damage to the property or any contravention to the terms of the tenancy contract, the security deposit should be returned to the tenant. 

Important Note: A tenancy contract in Dubai does not terminate early upon the death of the tenant, and is transferred to the legal heirs of the deceased tenant, unless the heirs choose to terminate the tenancy. 

Get Legal Help: Kayrouz & Associates’ Real Estate Law Team provides tailored legal advice and strategic solutions to manage early termination of tenancy contracts in Dubai. 

Valid Grounds for Early Termination of Tenancy Contracts

While a tenancy contract can be terminated early in Dubai, by providing a written notice, there are usually specific grounds for the same:

For Tenants

A tenant may terminate a tenancy contract early for several reasons, including: 

1. Transfer to a different city or overseas relocation
2. Change or loss of a job 
3. Family or medical emergency
4. Financial difficulty or hardship

There may also be reasons related to early termination for cause, including:

1. Refusal by the landlord to perform essential repairs or maintenance
2. Disconnection of utilities by the Landlord
3. Landlord entering the property without advanced notice
4. Failure by the landlord to maintain proper living conditions in the property 

For Landlords

There may be different reasons why a landlord may terminate the tenancy early. These include:

• The tenant fails to pay rent within 30 days of being served a written notice from the landlord
• The tenant subleases the property without the landlord’s prior permission
• The tenant is not using the property for the purpose for which it was leased
• The property is used for any immoral or illegal activity
• The tenant has caused damage and made any unsafe modifications to the property without the landlord’s permission
• The tenant fails to comply with the terms of the tenancy agreement or any applicable laws

What Happens If the Contract Has No Early Termination Clause?

Typically, an early exit or termination clause is necessary to terminate the tenancy agreement early, and the landlord may demand compensation for early termination or forfeit the rent for the remaining term of the tenancy agreement. 

Expert Guidance: Book a free consultation and discuss your case with Kayrouz & Associates’ Real Estate Law Team before terminating your tenancy agreement to avoid any legal disputes.

Process for Early Termination of a Tenancy Contract in Dubai

Typically, the process for early termination of a tenancy contract for a tenant in Dubai includes the following steps:

1. Check whether the tenancy agreement has an early termination clause
2. Contact the landlord for early termination 
3. Give 90 days written notice (or the duration written in the tenancy agreement)
4. Vacate the premises and clear all dues
5. Request a No Dues Certificate

How to Cancel Ejari After Early Termination

As all tenancy contracts in Dubai must be registered with Ejari, the contract must be cancelled upon early termination. 

Either the tenant or the landlord may cancel the Ejari through the Dubai REST app or from the DLD portal. 

For cancelling the Ejari, the following documents may be required:

• Emirates ID and a copy of the Passport 
• UAE Pass (if applicable) 
• Signed copy of the Dubai tenancy contract
• DEWA clearance and final bill (if applicable)

Note: The Ejari may also be cancelled by visiting the Real Estate Services Trustee Centres

/Ejari Cancellation Centres in Dubai.

Penalties and Financial Consequences of Early Termination of Tenancy Contract in Dubai 

While there is no fixed penalty for early termination of a tenancy contract in Dubai, in most cases the standard penalty is two months' rent. 

But this amount may vary based on the terms of the tenancy agreement and the conditions/reasons for early termination. 

As most landlords have post-dated cheques for rent and security deposits, they may choose to retain them if the proper procedure for early termination of tenancy contracts is not followed. 

How Kayrouz & Associates Can Help in Early Termination of Tenancy Contract in Dubai

Kayrouz & Associates is a leading full-service law firm in the UAE, with twelve practice areas, 25-plus lawyers, and legal consultants. 

Founded in 2006 by Mr. Pierre Kayrouz, we have resolved over 570 cases, securing the best possible outcomes for our clients. 

We have a dedicated Real Estate Law Team that is equipped to handle complex legal matters with precision and care. Here’s how we can help you:

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• Real estate litigation and arbitration
• Real estate regulatory compliance
• Real estate transactions and conveyancing
• Drafting and negotiating tenancy and lease agreements
• Resolving disputes for landlords, tenants, and developers

Visit Kayrouz & Associates’ offices in Dubai or Abu Dhabi, or book a free consultation to discuss your case further. 

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