Dubai Tenant's Right (Infographics)

The Penalty for Early Termination of a Tenancy Contract

Life is unpredictable. After a few months signing your tenancy contract, your current circumstance forces you to leave your rented property. There are things that are just beyond your control that might need you to terminate your tenancy contract prematurely. When that happens, it pays to know the possible repercussion of your decision and how an attorney in Dubai can help.

It is important to note that Law No. (26) of 2007 does not provide specific guidelines on how early contract termination should be handled. It only stipulates the relationship between a landlord and a tenant. Thus, the Real Estate Regulatory Agency (RERA) will have a few limitations when it comes to handling your problem. You may also want to review RERA laws and regulations to know your options.

In most cases, the penalties of early termination are stipulated in the tenancy contract. Ideally, before you signed the contract, you should ensure that an exit clause has been in place to allow for leniency when you decide to leave the property earlier than expected. Seek the help of residential or corporate lawyers in Dubai to add the ideal exit clause to your tenancy contract.

Please note that if an exit clause is not included, then your landlord is not legally required to let you go without any compensation. Checking your tenancy contract should give you an idea what the penalties you might face in case of early termination.

The most common penalty tenants face is not getting their security or advance deposit back. Most landlords use the rent deposit as a way to compensate with the loss they incur from your failure of meeting your part of the tenant contract.

Another penalty you might face is an immediate eviction. If you have breached the tenancy contract, the landlord could have the right to remove you from the property as soon as they want to.

Again, remember that the penalties differ from one contract to another. Thus, it is crucial that you review your tenancy contract and take note of the specific penalties written on it. If you need help interpreting your contract, speak to legal advocates in Dubai to learn more.

Why You Need a Lawyer When Buying Real Estate

Buying a real estate property could be one of the biggest investments you will ever make in your life. Thus, you want to minimize problems and avoid potential losses in the future. No wonder, more and more UAE residents are now turning to a lawyer to obtain expert real estate legal advice.

Here are some of the top reasons why you should get a lawyer when buying a property in the UAE.

Ensure property is free of any impediments

In the process of finding a property and determining when to hire a real estate attorney, it is important that you make a detailed background check. Obviously, you do not want a property that comes with easements, liens, encroachments, and other legal liabilities.

Of course, a real estate agent can do this for you. However, a lawyer has a more in-depth knowledge and capabilities to identify current and future problems that related to the property. Not only that, but a real estate attorney can effectively determine whether a person has the right to sell a property or not.

Term negotiations

A real estate lawyer is specialized and experienced in handling issues related to real estate. This means that they have the solid knowledge to negotiate terms with developers, sellers, and other investors.

Almost any agent can understand the real estate market, but it takes a legal expert to know the legal implications of buying a property.

Quicker property transfer

From preparing legal contracts to filing documents, a real estate lawyer is here to help you. The whole process of buying a property includes legal formalities that, more often than not, an ordinary real estate agent could not handle.

Take mortgage agreements and purchase contracts for example. An agent does not have the legal jurisdiction to handle such documents but lawyers or legal advocates in Dubai do. Plus, you do not have to go through the terms and conditions of your contract since a lawyer can summarize them for you and highlight important points.  

Tenant's Rights in Dubai

Planning to rent a property in Dubai? Or perhaps you are already renting a house or office space? Whatever your situation is, you need to know your right as a tenant and how Dubai rental law can affect your decision.

Whether you like it or not, there is always the chance that tenants and landlords would not be able to agree with something. So, before you sign the dotted line, it pays to know your rights and responsibilities.

Property cannot be rented twice

As a tenant, you need to make sure that your tenancy contract has been registered with Real Estate Regulatory Agency (RERA Dubai). It makes sure that the property will not be rented again until you leave it. Most importantly, it ensures that the Dubai Rent Dispute Settlement Centre (RDSC) will step in when a rental dispute Dubai arises.

No eviction for any reason

Usually, a tenancy contract would stay effective as long as you do not violate any terms and conditions stipulated in it. Your landlord cannot evict you from the property just because they changed their mind.

Contract Change notification

If in case a landlord wants to change something in your contract, he would need to send a written statement within the accepted Dubai tenant notice period (usually, at least 90 days before your contract expires). By doing so, you would have enough time to consider what to do with the proposed change.

Repairs and maintenance

Once you agreed to your contract, it is your right to receive the property in good condition. Major repairs and maintenance are the responsibility of the landlord and not you as a tenant. If the landlord decides to make renovations or changes in the property, it should not negatively affect your ability to use the rented unit.

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Buying Property in Dubai

Now that you have explored the different benefits of buying property in Dubai, you want to enter the real estate market. However, the whole process of purchasing a property can be daunting and overwhelming. From searching for a property to preparing a title deed, there are just too many things you have to accomplish along the way. Thus, it is important that you seek real estate legal advice. Apart from this, consider gathering as much information as possible before you embark on this financial journey.

Define your purpose

Decide whether you are going to use the property for personal or business. Basically, depending on your purpose, you would look for properties either in a commercial or residential area.

It is worth noting that Value Added Tax (VAT) has been recently introduced in the UAE. Thankfully, residential properties remain to be exempted or zero-rated. However commercial properties will generally attract an extra tax due to this new law.

Choose between freehold or leasehold properties

Freehold properties are properties that anyone, from any part of the world, can buy. On other hand, leasehold properties are those that you cannot buy. These properties are only available through a lease contract that generally lasts between 10 to 99 years.

When looking for properties, you might also decide whether you are going to buy off-plan or a property in the secondary market. Off-plan properties are those properties that are in the process of construction while secondary markets are those properties in resale.

Check your citizenship

Local Emiratis have almost no restrictions when buying properties compared to expats. Expats are not given the option to obtain UAE citizenship. Thus, they have to settle to buy properties in communities and areas where the law permits. Speak to a real estate lawyer Dubai, preferably who also knows Dubai rental law, to learn exactly how your citizenship status may affect your buying decision.

Searching for the property

Before you look for a property, start with assessing your needs, preference, and budget. Come up with a mental picture of what you want and understand the risks of buying property in Dubai too. Create a list of things you are looking for and then find the areas that match your list.

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Company Registration in Dubai

Dubai is among the top destinations for entrepreneurs, investors, and business owners. It has a thriving economy and its local laws and policies promote robust business growth. For many business advocates in Dubai, this country is surely a great place to start achieving your dreams.

Now, if ever you decided to form a company in Dubai, you will need to know basic information about how to accomplish this. Continue reading this post and you will gain an overview of what to expect when starting a company in this rich country.

Determine business type

You need to know the type of business that you want to start. This will dramatically direct the course you should take when forming a company in Dubai. Your business type will determine the type of license you need as well as other legal requirements you must to comply with.

Choose company structure

When setting up a company in Dubai, you have several options. However, the three most common options according to corporate lawyers in Dubai are the free zone, offshore, and onshore businesses.

• Free zone – businesses within the free zone enjoys a wide range of advantages. Foreign investors or expatriates can start a business in the free zone and gain the ability to own the business 100%. No need for a local UAE sponsor. Most free zones also provide tax exemptions on exports and imports.
• Offshore – offshore businesses are also established within a free zone. These businesses can take advantage of assets protection, financial confidentiality, risk management, and inexpensive startup cost, among others. The biggest drawback though is that offshore companies cannot directly trade within the UAE.
• Onshore – to be able to start an onshore business, a foreign investor must have a local sponsor or partner. Onshore companies are under the local legislation of Dubai. The best thing about onshore companies is that they can directly make business in the UAE and choose a wide range of business form.

Select location

Once you have prepared your legal documents, it would be a good idea to create a list of possible locations of your business. Include the cost and details of each option to determine which of them will meet your needs, preference, and budget. If you decide to choose the free zone, you can ask an attorney in Dubai for help to find the right place for you.

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