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.