Understanding Rent Contract Termination in Dubai

In Dubai, the relationship between a landlord and a tenant is governed by a rent contract that is registered with the Dubai Land Department (DLD) through the 'Ejari' system. This contract must detail the property being rented, the purpose of the rental, the duration of the lease, the rent amount, and the payment method. Consequently, the rent stipulated in the contract must be paid by the tenant as per Article 4 of Law No. 33 of 2008, which amends Law No. 26 of 2007 concerning landlord-tenant relations in Dubai.

Moreover, neither the landlord nor the tenant can unilaterally terminate the rent contract during its term. Termination can only occur through mutual agreement or in accordance with the provisions of the applicable rent law in Dubai, as stated in Article 7 of Law No. 26 of 2007.

In Dubai, rent contracts may include additional terms such as early termination by the tenant and the penalties associated with such termination, as outlined in Article 794(1) of the UAE's Federal Law No. 5 on Civil Transactions Law, amended by Federal Law No. 1 of 1987 and Federal Decree Law No. 30 of 2020.

To legally terminate a rent contract before its expiration, the tenant must provide written notice to the landlord, adhering to the notice period specified in the contract. Additionally, the tenant may be required to pay an early termination penalty as stipulated in the contract.

Given the legal provisions regarding early termination of a rent agreement, it is advisable to review the rent contract for any clauses related to early termination. Including an early termination clause in the contract can simplify the process and mitigate penalties if early termination becomes necessary. If the contract lacks such a clause, the tenant should approach the landlord, explain their circumstances, and provide the required notice as per the contract.

However, the landlord is required to refund the rent amount collected in advance for the unused period, after deducting any early termination penalty charges if these are mentioned in the rent contract.