Can a residential property landlord refuse payment for a breach of contract and
Posted by Dr. Hassan Elhais on October 17th, 2021
Residential property leases in Dubai are subject to the Law No. (26) of 2007 on ‘Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai’ (“Tenancy Law”). It is critical to bear in mind that a lease agreement entered into between a landlord and tenant constitutes a binding and enforceable agreement between the parties. Thereby, if any of the parties do not honor the terms of the executed commercial lease agreement, it would be termed as a contractual breach. Pursuant to the UAE laws a contract binds the parties to perform the contractual obligations, and any failure to adhere to those obligations is considered a ‘breach of contract’.
Pursuant to the Dubai Tenancy law, a landlord may order eviction of an existing tenant only in the following two instances: either a) upon expiry of the Lease Contract; or b) if the circumstances as detailed in clause 25 of the tenancy law occur.
Upon expiry of the Lease Contract, the Landlord may seek eviction of the Tenant from the Real Property if:
- Competent Government entity requires demolition and reconstruction of the Real Property as per urban development requirements in the Emirate;
- the Real Property is in a condition that requires full renovation or comprehensive maintenance that cannot be carried out in the presence of the Tenant in the Real Property, provided that the condition of the Real Property is verified by virtue of a technical report attested to by Dubai Municipality;
- the Landlord wishes to demolish the Real Property to reconstruct it or add any new constructions that will prevent the Tenant from using the Real Property, provided that the Landlord obtains the required permits from the competent entities; or d. the Landlord wishes to repossess the Real Property for use by him personally or by any of his first-degree relatives. However, for each of the above-mentioned four cases, the Landlord must notify the Tenant of the eviction reasons at least ninety (90) days prior to the expiry of the Lease Contract.
- the landlord wishes to repossess the property for use by him personally or by any of his first-degree relatives, provided the Landlord notifies the Tenant of the eviction reasons at least ninety (90) days prior to the expiry of the Lease Contract.
The landlord may also seek eviction of the Tenant from the real property if any of the following circumstances apply:
- If the tenant refuses to pay the rents or part of it within 30 days’ notice of payment have been served by the Landlord
- If the tenant subleases the property or part of it without the landlord’s consent.
- If the tenant uses the property for illegal purposes or allows others to do so.
- If the tenant uses the property contrary to the purpose of leasing.
- If the property is in danger of collapse supported by a technical report.
- If the tenant makes alterations or changes to the property or allows others to do so that endangers the safety of the property.
- If the tenant fails to abide by the tenancy rules and regulations within 30 day’s of the landlord’s notifications.
- In case where the government authorities demand demotion or reconstruction to meet the development requirements.