UAE Legal Q&As: When in doubt about rent, call the arbitrator

Questions on a rental dispute, parking in sandy areas and bank loans when an employee is fired are answered this week.

My annual contract for a one-bed flat in Al Nahda 2, Dubai, is due for renewal on October 1. As per the law, the real estate agent sent a notice 90 days before the renewal to increase the annual rent to Dh53,500, which is almost 16 per cent higher than what I am paying, Dh46,200. I checked the Dubai rental calculator and it says the increase should be 5 per cent. Additionally, maintenance fees were increased. What can I do now to ensure he sticks to the increase in line with the RERA calculator? And if he does not agree to comply, what do I do then? Also, are email communications valid or should I communicate with him via fax?

You should send a letter to the landlord (either by hand, email or fax but fax would be the preferred method) to inform him about the rent calculator’s 5 per cent limit. If your landlord does not agree then you should approach the Rental Dispute Settlement Centre at Dubai Land Department, and give them the rent as per the calculator for the following year then inform the landlord that he can collect it there.

I would like to know if it is illegal to park in an empty plot of land, a sandy area, with a ramp for vehicles to get onto the sandy area. I ask because a man who was not dressed in a police uniform – he was in national clothing – informed me that I could not park on the empty plot and that he had issued fines for me parking there. I have never had a fine placed on my car while I was there and it doesn’t appear on my record. Is it lawful for this man to approach/scare/threaten me when the land was not his? I know the land is not his because there is a sign saying Adnoc and he said he was employed by the building right next to the empty plot of land.

In general, it is possible to park in sandy areas as long as there is no disruption to traffic, which is the most important point, and as long as there is no sign erected to warn and prevent parking there. As for the fine, if the individual who spoke to you is not a policeman or a transport official then he has no right legally to issue any traffic fines – or to threaten you.

When an employee is terminated from his company, what happens with a bank loan belonging to that person? Are there procedures/laws in place that detail what can be done?

A loan agreement is totally separate from any employment contract so, therefore, the person taking out the loan, who is doing so for their own benefit, must accept the responsibility to pay it back. It is up to the individual to find the means to keep up their payments on the loan.

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