Life and business move fast in Dubai. Whether it’s a sudden job relocation or a strategic business pivot, you may find yourself needing to break a lease before its expiry. In the UAE, there is no automatic statutory right for a tenant to terminate a lease early; the process is primarily dictated by your contract terms and mutual agreement.
The Power of the “Break Clause”
Ideally, your tenancy contract should contain an Early Termination Clause. This typically requires a 60 to 90-day notice period and a penalty, which in 2026 remains standard at two months’ rent. If this clause is present, the process is straightforward: you serve the notice, pay the penalty, and receive your clearance.
Navigating Termination Without a Clause
If your contract is silent on early exit, you are legally bound to the full term under Article 7 of Law No. 26 of 2007. To exit without paying the remaining months in full, you must:
- Negotiate a Settlement: Propose a 2-month penalty in exchange for a mutual termination agreement.
- Find a Replacement: Offer to find a new tenant for the landlord to avoid any vacancy loss.
- Prove “Force Majeure”: In rare cases of extreme hardship (such as company liquidation), the Rental Disputes Center (RDC) may grant a termination with reduced penalties.
How DY Legal Consultants Will Help
Terminating a lease early without legal guidance often leads to landlords holding security deposits or even cashing post-dated cheques. Our Real Estate Lawyer in Dubai protects you by:
- Drafting Mutual Termination Agreements: Ensuring that once you pay the penalty, the landlord waives all future claims.
- Negotiating with Landlords: We act as your intermediary to lower penalty fees and ensure the return of your remaining cheques and security deposit.
- Ejari Cancellation: We handle the formal cancellation of the Ejari to ensure you are not legally liable for the property after you move out.
