Ask the law: Property owner, developer in dispute over unpaid rent
3-year dispute highlights issues with long-term leases and developer responsibilities
Question:
Three (3) years ago, I purchased a property from one of the developers, and the agreement was that the developer would rent the property for a period of 12 years. I signed a lease contract with the developer, but until this moment I have not received anything of the rental value, as I contacted the developer and he reported that he was unable to rent the property.
I asked him to return the property to me, but he refuses and clings to the rental contract. My question: what is the appropriate action to take against this developer to recover the property and also claim the rental value for a period of 3 years? Please advise
Answer:
I would advise the following:
You have to file a case to cancel and terminate the contract as well as to request for the 3 years rental amount because according to Article (267) of the Civil Transactions Law, “If a contract is valid and binding, none of the contracting parties may revoke, modify or rescind it except by mutual consent, order of the court or a law provision.”
By terminating the contract, you will return back your property as per what is stated in Article (274) of the same law, when a contract is or shall be canceled, the two contracting parties shall be reinstated to their former position, prior to contracting, and in case this is impossible, the Court may award damages.
Such case shall be filed in front of the Civil Courts, not the Rental Dispute Center, because the subject of rental is considered as a long-term lease, which is excluded from the jurisdiction of the Rental Dispute Center according to Article (6) of the Decree No. (26) Of 2013 Concerning the Rental Disputes Settlement Centre in the Emirate of Dubai (“The RDSC shall have no jurisdiction to hear the following Rental Disputes:
1. Rental Disputes that arise within the free zones which have tribunals or special courts having jurisdiction to determine the Rental Disputes that arise within their boundaries;
2. Rental Disputes that arise from a lease finance contract; and
3. Disputes that arise from long-term Lease Contracts governed by the Law No. (7) Of 2006.)
To prove this case, you have to request to transfer the matter to an expert to prove whether the developer rented the property within these years or not, and in the first case, to calculate the rental amount you deserve as per the Contract signed.