Insights on Rental Disputes June - 2024

Overview of Rental Disputes in Dubai: Questions & Answers

1- Legal Framework and Enforcement

Question:

What legislation applies to rental cases in the United Arab Emirates, and who enforces it?

Answer:

In the United Arab Emirates (“UAE”), rental cases are governed by federal and local laws. Federal Law No. 26 of 2007 and Law No. 33 of 2008 Amending Law specifically for Dubai, outlines regulations concerning rent disputes. Each emirate may have its own laws and regulations regarding tenancy matters. Enforcement and oversight typically fall under the jurisdiction of local Rental Dispute Committees or similar authorities established within each emirate. These bodies handle disputes, interpret laws, and ensure compliance with relevant regulations, providing a framework for resolving rental disputes efficiently.

In Dubai, the Government through the Dubai Land Department operates the Rental Dispute Center, which is authorized to handle fixed rental disputes between tenants and landlords.

2- Key Considerations in Lease Agreements

Question:

What should a tenant pay attention to in the lease agreement in the UAE?

Answer:

As a tenant in the UAE, it's critical to carefully review key aspects of the lease agreement to protect rights. Focus on understanding lease duration, renewal terms, rent payments, security deposit conditions, maintenance responsibilities, utility charges, usage restrictions, termination conditions, compliance with UAE laws, and the dispute resolution process.

3- Tenant's Rights and Disputes

A- Tenant Rights After False Sale Notice

Question:

If a landlord sends a 12-month notice to vacate because they intend to sell the house, but then rents it to another tenant at a higher rent, what rights does the original tenant have?

Answer:

In this scenario, the tenant has grounds to file a complaint with the Rental Dispute Center to seek compensation for damages incurred during the relocation process. This may include:

➢ Compensation for the difference between the rent the tenant was paying and the higher rent paid by the new tenant over the course of one year.

➢ Reimbursement for all expenses related to moving out of the house.

Seeking legal advice and documenting all communications and expenses related to the relocation will strengthen the tenant's case. The Rental Dispute Center can provide mediation and resolution services to address this issue in accordance with UAE rental laws and regulations.

B- Finality of Decisions and Recourse Options

Question:

Is the decision of the Rent Dispute Centre final, or are there other options for apply?

Answer:

If the claim is less than AED 100,000, the decision of the Rent Dispute Centre is final. However, if the claim exceeds this amount or if one of the parties wishes to appeal the decision, further recourse options may be pursued, depending on the specifics of the case and applicable law.

C- Timeline and Court Fees

Question:

How long does the rental dispute process take, and what are the court fees?

Answer:

Resolution timelines vary but typically take up to six months. Court fees, calculated at 3.5% of the claimed amount in money claims, are reimbursed by the losing party upon a successful case outcome.

D- Required Documentation for Filing Complaints

Question:

What documentation must tenant provide when filing a complaint with the Rental Dispute Center?

Answer:

When filing a complaint with the Rental Dispute Center, tenant must submit several key documents: the original rental agreement, the legal notice issued by the landlord, receipts or invoices for moving expenses, and any additional documentation that substantiates own claim, such as communication records with the landlord. These documents are essential for supporting your case and ensuring a thorough review by the Rental Dispute Center.

E- Hearings and Personal Attendance

Question:

Must tenants personally appear in court for the hearings?

Answer:

It is not mandatory to physically attend. All hearings are conducted online through Teams calls, ensuring convenience and efficiency without requiring in-person attendance.

F- Impact of Early Departure on Tenant's Rights

Question:

If a tenant found a suitable house before the end of the 12-month notice period and requested permission from the landlord to vacate early, will this early departure impact the tenant's ability to file a case with the Rental Dispute Center?

Answer:

The tenant's early departure does not affect their right to file a case with the Rental Dispute Center. The tenant still maintains a strong position to pursue their case successfully. The decision to leave early was prompted by the landlord's notice, which is a valid circumstance supporting the tenant's claim. Presenting strong arguments significantly increases the likelihood of the dispute being resolved in favor of the tenant.