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In Dubai, tenants of both commercial and residential properties may request rent cuts or early contract termination without having to pay compensation to the landlord – thanks to an order issued by the Rent Disputes Centre (RDC).

Through the administrative order, signed by Judge Abdulqader Mousa Mohamed, head of the RDC, two committees were formed to look into rental cases related to the cancellation of tenancy contracts and decreasing rent value. Another committee shall also be formed to take charge of appeals filed to challenge the rulings issued by the two primary teams.

Many businesses, like restaurants, enterprises and commercial groups, have reported a decrease in earnings. Residents have suffered salary cuts, with some even losing their jobs. The order offers the rent relief people need in the time of Covid-19

Case study

 A business owner renting a restaurant for Dh1 million may find himself unable to pay his dues, but thanks to this resolution, he can have two options, Bin Suwaidan explained.

“One option is to file a lawsuit and request the rent value to be reduced. He must submit the necessary papers to the committee, showing what his business had gone through and the losses it incurred due to the market and that it was none of his intention defaulting. The second option would be to pull out of the commitment and request that the contract be cancelled before the due date.”

Job loss as ‘force majeure’

Termination of employment, as well as pay cuts, can be considered ‘force majeure’, one of the exceptional circumstances that can enable the tenant to seek rent relief, said lawyer Hani Hammouda of Kefah Al Zaabi Firm for Advocacy and Legal Consultancy.

 

To view the full article visit the website Khaleej Times.com

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