Question: I have been renting an apartment in Dubai since July 2021. In April 2022, I was sent a renewal agreement by the real estate agency that brokered the first contract on behalf of my landlord.
The agreement included a rental increase as per the Real Estate Regulatory Agency calculator, which I agreed to. In July 2022, I renewed the contract and registered the Ejari.
Last November, a bailiff from Dubai Courts came to my apartment with a repossession notice. The bailiff and courts were unaware that the apartment was tenanted. After being sent a copy of my Ejari, they did not carry out the repossession.
They informed me that my landlord had defaulted on his loan and the bank had taken repossession of the property and had been the owner on the title deed since February 2022.
The bank did not inform me that it was the new owner and has not sent any official correspondence. Also, I was able to register the contract and Ejari with the title deed given by my landlord, which listed him as the owner.
I have two questions. Since my Ejari is with the previous owner and I have not had any official correspondence from the bank, should I still be paying him? Secondly, should the bank give me 12 months’ notice to vacate the property?
Will I be able to renew my lease under the same terms and conditions as before? MK, Dubai
Answer: All that has happened here is that the communication wheel has, or is, turning very slowly.
No court or bailiff can come to take possession of a property if there is a legal tenant residing. You will be entitled to stay for the near future at least.
When a new owner takes possession of a property with a tenant in situ, they do so with the same terms and conditions as the previous owner.
So, in your case, the bank is now your landlord and you are entitled to reside in the property as long as you continue to abide by the tenancy contract clauses.
With regards to the rent, do one of two things: either keep the rental money aside and wait to be told who to give it to, but do not give it to the previous landlord because he is no longer the legal owner as per the court order and title deed.
The second option is to offer your rent cheques to the Rera, which is based in the Dubai Land Department. It has a system in place that allows tenants to deposit their rent cheques. Rera then contacts the owner to collect the cheques.
With reference to your last question, the bank, as your landlord, must give you 12 months’ notice to vacate, especially if it wishes to sell the property.
Your wish to renew the lease on the same terms and conditions will depend on the timing and stance of the bank. But any changes to a contract have to be communicated to all parties giving at least 90 days’ notice from the date of renewal.
If the renewal is in July, I assume that the bank has missed the 90-day window and you should be able to renew for one more year under the same terms and conditions as before.
Q: When I renewed my lease for a year last September, the landlord added a clause stating that this would be the last year of my tenancy.
I am aware that he must send me a notarised eviction notice stating his intention to either move into the apartment or sell it.
However, the landlord did not send me a letter through the notary. It was just on the tenancy contract, but I signed it.
Is this legally binding and can he use it against me if I decide not to vacate? If I vacate and my landlord re-lets the property, will I be able to sue him and seek compensation? RE, Dubai
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A: The rental laws of Dubai are in place to safeguard the rights of all parties and are clear in their execution.
According to the law, the landlord is not allowed to state a non-renewal clause in your contract.
Despite agreeing to it by signing the tenancy contract, it doesn’t mean you cannot change your mind.
A contract is binding and can be executed as per its contents as long as there is an agreement between all parties. When there is no agreement, the law is the default.
Given your landlord has not sent you the statutory 12-month notice via the prescribed channels (notary public or registered mail), it means you do not have to vacate. If you want to stay in the property, the landlord would be obliged to renew for another year.
If your landlord refuses, you can file a case at the Rental Dispute Settlement Committee with the assurance that his case is weak and yours is not.
While all decisions at the RDSC are taken by the judges alone, you would be in a strong position to be able to renew.
If you did move out and subsequently learnt that the landlord re-let the property, you could be entitled to compensation. You would have to file a case at the RDSC.
Mario Volpi is the sales director at AX Capital. He has worked in the property sector for 39 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to m.volpi@axcapital.ae
