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:
The landlord may also seek eviction of the Tenant from the real property if any of the following circumstances apply:
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Arbitration is best described as a cost-effective alternate dispute resolution process, which assists in smoother business relationships without incurring the rigidity of court proceedings. To address many of the pitfalls of the arbitration process and to bring the UAE arbitration process in tune with the best international standards, the UAE enacted Federal Law No. 6 of 2018 on ‘Arbitration’ and its amendments (“Arbitration Law”).Commercial leasing and breach of contract punishments
In legal terms, a lease agreement can be defined as ‘a contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment’. A ‘commercial lease agreement’ constitutes a written lease agreement whereby a landlord agrees to lease his commercial property to another person or entity for a given business purpose and specified time period.