UAE: I terminated my contract early - will I get my cheques back or have to pay a penalty?

Dubai: If you terminate your lease agreement in the UAE before it is completed, would you need to pay a penalty or the remaining rent for the months left on the contract? Here is all you need to know.

Dubai’s Rental Law No. 26 of 2007 regulates the relationship between landlords and tenants in the emirate of Dubai. As per Article 7 of this law, neither party can terminate the contract before the end of the tenancy period, unless the two agree to the early termination or due to any legal reasons, in accordance with the provisions of the law, according to Reda Hegazy, Senior Legal Advisor and Arbitrator at Al Suwaidi and Company advocates and legal consultants.

“That means neither the tenant nor the landlord can, with his sole discretion, terminate the contract. So, it is best to agree in the contract on the corresponding penalties or the compensation for the early termination,” he said.

Based on the law, tenants would need to review their tenancy contract to find out what the clause for early termination entails.

However, if you do find yourself in an exceptional circumstance where you are unable to continue the lease agreement, legal experts advise discussing the case with your landlord to find an amicable solution.