Property Disputes for Tenancy Contracts in Dubai

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Property Disputes for Tenancy Contracts in Dubai

10/12/2024

Dubai authorities made huge progress in their effort to establish good relationships between landlords and their tenants when they clarified the landlords' and tenant's rights. In addition, the Real Estate Regulatory Authority has developed a unified tenancy contrast that is mandatory and contains typical clauses.

However, sometimes landlords still have disputes with their tenants. Typically, this happens because tenants want to escape their obligations, break the contract, or damaged the landlord property. Moreover, they may get involved in inappropriate or illegal activities that cause the landlord's decision to evict them.

Our personnel consist not only of experts skilled in property management but also best property dispute lawyers in Dubai. With their help, we created this post in order to discuss the ways of resolving property disputes between you and your tenants and make you familiar with the procedure.

How to solve a Property Dispute in Dubai

If you have to face tenancy-related property disputes in Dubai, we recommend you to do the following steps:

Study the rental legislation in Dubai and your tenancy agreement in order to understand the boundaries of your and your tenant's rights and obligations. In other words, make sure you are the one who has legal support behind his back;
Negotiate the issue and try to solve your dispute amicably. Discuss the problem with your tenants, providing your arguments and supporting them with certain clauses of your tenancy contract and the legislation;
If you fail to come to an agreement, your last mean to resolve the issue is to file a case with the Rental Dispute Center (RDC), an organization which functions we will discuss later.

Why we recommend you negotiate at first instead of applying for RDC? Because this is the fastest way to get the issue resolved. For example, it can take a more than month to settle the case via RDC with first 15 days given to resolve the dispute amicably.

Rental Dispute Center

The Rental Dispute Center is an organization created to settle rental issues and disagreements in Dubai through First Instance and Appellate Circuits. The main limitation of the RDC jurisdiction includes rental disputes within free zones with their own court or tribunal as well as financial and long-term leasing.

The Rental Dispute Center is organized into four departments:

Arbitration and Conciliation;
First Instance;
Appeal;
Execution.

The Arbitration and Conciliation department is the first stage of resolving rental disputes in Dubai. So, when you file a case you will come to The Arbitration and Conciliation department. An arbitrator tries to resolve rental issues amicably. In other words, his task is to provide a landlord and its tenant an opportunity to negotiate the issue, make them aware of other party rights, and find the solution that satisfies them both.

If you still fail to resolve the dispute amicably, your case will be sent to the next level, to the First Instance department. As a compliant, you will have to sue against another party. A professional judge will hear this lawsuit and give his sentence.

This verdict is not final if the claiming amount is less than AED 100,000.00. Thus, if it doesn't satisfy one of the parties, the party can file an appeal. The Appeal department will hear the lawsuit and make the final sentence.

At last, this sentence moves to the Execution department where they fulfill the ruling.

Breach for Tenancy Contracts

Tenancy contract is designed to protect both tenants' and landlord's rights as well as clarify their obligations and liabilities. However, chances are tenants break the contract terms. In other words, they may break the clauses stated in their tenancy agreement. They may not fulfill their obligations or violate the landlord's rights.

The most common landlord troubles with their tenants concerning breach for the tenancy contract include:

Using the rental unit in a way that wasn't stated in the contract;
Subleasing the premise without the landlord's permission;
Remodeling the rental unit without the landlord's approval;
Overdue payment;
Tenant non-compliance with regulations issued by the building owner;
Breaking the exit clause stated in the contract.

According to our studies: overdue payment, premise subleasing and breaking the exit clause are the leading cases of tenancy contract breach. That's why it is important to request previous landlord's references for your tenants at the stage o screening them.

The good news is you can evict your tenants in case they break their tenancy agreement and use the security deposit to compensate for your loss.

At BSO, we have skilled and experienced layers in our team. Thus, as a property management company, we do our best resolving disputes and protecting our clients' rights. Contract with us and secure your rights, your property, and your rental income.