I was recently laid off and am looking to break my lease, though I still have five months left on it. A lawyer told me that perhaps the landlord could only charge me for two or three months, instead of all five. However, we searched for a legal statute on this and didn't find one. Do you have any pointers? KF, Abu Dhabi
As per the tenancy law article 20 clause 1, a lease shall be valid until the termination of the specific period which may be renewed for another term subject to the mutual agreement of both parties. You can only terminate a rental contract early if there is a specific clause in the contract or by consent of your landlord. In most rental contracts nowadays, there are break clauses inserted among the addendums. The most common one (as your lawyer pointed out) is to offer a compensation to the landlord of at least a couple of months' rent. These clauses came into being some time in 2009, as many tenants were uncertain about their job security. Your landlord holds all the cards in his hands, but while I'm sure he will be understanding that you have unfortunately lost your job, he could keep you to your contractual agreement. This is why it is important to offer him a good compensation to break the contract earlier.
I am Egyptian and currently work in Saudi Arabia. I would like to invest US$150,000 in the Dubai property market. Can I buy in Dubai without having residency in the country? What financing options are available in Dubai? And what would be the expected rentals per year and the service or municipality charges I should expect? AK, Saudi Arabia
All nationalities are welcome to buy any property in Dubai, but unless you are a national of the UAE or the GCC, you will only be able to buy within certain freehold areas such as Dubai Marina, Palm Jumeirah, Downtown, Jumeirah Lakes Towers etc, to name a few. You are able to buy properties in these specific areas on a freehold basis for an indefinite period also without having a residency visa. If you were to increase your budget to Dh1 million, you would be entitled to a renewable residency visa. Service charges vary from building to building and area to area. The cheapest are found in International City, costing just Dh6.5 per square foot and the most expensive are in Downtown, where the average cost is Dh22.5 per sq ft. Other areas such as Business Bay, Jumeirah Lakes Towers and Dubai Marina average Dh15 per sq ft; the Greens are Dh13 per sq ft, with Discovery Gardens and The Palm Jumeirah Dh12.5 and Dh12 per sq ft respectively. Lastly, Dubai Sports City, International Media Production zone and Jumeirah Village Circle average Dh10 per sq ft. About 18 months ago, Rera unveiled the service charge maintenance index for freehold areas, which provides details of about 300 projects in 22 master developments. More details can be found on the Dubiland.gov.ae website.
I own a property and had asked my tenant to leave in January 2015 (after she served a year of eviction notice). She stayed an extra month for free even after the last date of eviction saying it was for her kid's education and she was about to leave the country. After she vacated I handed over the deposit cheque. She then left the country and did not collect the cheque. Now she is back on a new visa and wants to claim her deposit money. Is this legal? PN, Dubai
You mention that you handed your tenant her (deposit) cheque back, presumably because you were satisfied that she left the property in an acceptable condition, therefore she was in possession of her money, albeit not cashed yet. I am also assuming you gave her the cheque in February, therefore your cheque is still valid as it is less than six months old. If she has lost the cheque, I suggest you wait until the six months are up before issuing her with another. This is to prevent her having two cheques and trying to cash both.
Mario Volpi is a real estate professional who has worked within the industry for the past 31 years in London and Dubai. The opinions expressed in this article are those of the author and they do not reflect in any way those of the institutions to which he is affiliated. It does not constitute legal advice and is provided for information only. Please send any questions to mariovolpi64@gmail.com.
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